What was established by the Indian government in 1950 to aid in economic development?

• A. Economic Advisory Council
• B. Planning Commission
• C. National Development Agency
• D. Ministry of Finance

Answer: (B)

The Planning Commission was established by the Indian government in 1950 with the primary aim of formulating plans for the management and development of the economy. This institution was tasked with defining the country's economic goals and determining the means to achieve them. The Planning Commission played a crucial role in assessing resource availability, identifying priority areas for development, and helping to allocate resources effectively to meet the developmental needs of different sectors, such as agriculture, industry, and social welfare.

The establishment of the Planning Commission marked a significant step towards centralized planning in India, allowing for a coordinated approach to economic development. It enabled the government to set up five-year plans, which served as a framework for national and regional planning and policy formulation. This was especially important in a newly independent India, as the country sought to address the challenges of poverty, unemployment, and infrastructure development.

While other entities, such as the Economic Advisory Council, National Development Agency, and Ministry of Finance, play roles in the economy, they do not have the same comprehensive planning mandate that the Planning Commission had. The Commission was instrumental in shaping economic policy in India for several decades until its functions were transferred to the NITI Aayog in 2015, which now operates with a focus on promoting sustainable development through