1. Economic Planning in India.
Transition from Mixed Economy to
Market Economy.
Transition in GDP.
Presented By
K.Naga Sundar
S.Sridhar Reddy
T.Mounika
2. Contents
• Introduction of Economic Planning
• Essential Objectives of Planning
• Definitions of Mixed and Market Economies
• Transition from Mixed to Market Economy
• Transition in GDP
• Sectors affecting GDP
• Factors affecting GDP
• Conclusion
3. Introduction of Economic Planning
• Planning is an economic mechanism for
resource allocation and decision-making.
• Economic planning refers to any directing or
planning of economic activity outside the
mechanisms of the market.
• The Economic Planning has been going on
great since independence.
• This has played a major role in the
development of the country and led India
become self sufficient.
4. Essential Objectives of Planning
• High Rate of Growth
• Economic Self-Reliance
• Social Justice
• Modernization of the Economy
• Economic stability
5. Definitions Of Mixed And
Market Economies
• Mixed economy is an economic systems in
which both the state and private sector direct
the economy, reflecting characteristics of both
market economies and planned economies.
• A market economy is an economy in which
decisions regarding investment, production
and distribution are based on supply and
demand and the prices of goods and services
are determined in a free price system.
6. Transition From Mixed to
Market Economy
• A mixed economy permits private
participation in manufacturing and
production.
• It also contributes to public ownership in
fabrication and manufacturing which can take
full advantage of social welfare.
• In a mixed market economy this system is
governed by licensing and regulation policies.
7. Transition From Mixed Economy
to Market Economy(contd…)
• A market economy is known as a "free market
economy".
• It is controlled by the law of supply and
demand which in return will determine the
price of services and goods.
• In a market economy the exchange of goods,
services, and information take place freely
according to the supplier and the buyer.
8. Transition From Mixed to Market
Economy(contd…)
• Mixed economy’s regulations may paralyze
features of production.
• Lack of price control management can cause
shortages in goods and can result in recession.
• The market economy is merely driven by the
sellers and the buyers with very few
government regulations.
• This in turn leads to effective marketing.
9. Factors Affecting GDP
• Agriculture
• Investments
• Services
• Textiles
• Tourism
• Banking and Finance
• Foreign Direct Investments
10. Transition in GDP
• The goal of GDP is to measure the total
production of goods and services produced in
the economy each year.
• GDP is important because it gives an
indication of how successfully society is
addressing the scarcity problem.
12. Conclusion
• Planning involves economizing of scarce
resources inorder to reduce the inequalities of
income and wealth.
• Transition from Mixed to Market economy
leads to proper exchange of goods and
services at an eqilibrium price.
• Transition in GDP defines the overcoming of
scarcity problems in the market.
