Some of the Economists highlight that Planning has no relevance in the market led economy as the Government role is considerably reduced. Without Government owned agencies, it becomes difficult to meet the targets set under the Plans. Hence, planning may have little meaning in the absence of adequate financial resources and agencies at the disposal of the Government to finance and implement plans.
However, Planning remains relevant even in market led economy. Only the nature of planning changes from "Imperative" to "Indicative Planning". Planning in the market led economy may fulfil the following roles:
- Prescriptive Planning: Planning can lay down long term vision and be more pro-active. Planning can become "Fire-Proofing" exercise wherein future problems can be anticipated and accordingly strategies can be devised in the present times to counter such problems. Example: Strategies to become developed economy by 2047.
- Redistributive Planning: Planning can be used to reduce existing inequalities and promote inclusive growth and development. For example, as a "Think Tank", NITI Aayog carries out critical review of Government schemes and policies, identifies gaps and suggest innovative approaches.
- Attract Private Sector Investment: The share of Private sector Investment in Infrastructure continues to remain lower (30%) and hence planning can create conducive conditions for attracting private sector investment. For example, National Monetisation Pipeline is formulated by NITI Aayog and seeks to raise Rs 6 lakh crores over the next 4 years.
- Promote Balanced Regional Development: Planning can focus on solving region-specific problems by bringing all the stakeholders together. Ex: NITI Forum for North East, Island Development Agency.
- Ensure Convergence of schemes and policies at the ground level Ex: Aspirational Districts Programme.
- Promote Cooperative and Competitive Federalism through initiatives such as SDG Index, Health Index, Composite Water Management Index etc.