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Question

Difficulty: MediumEconomic Planning History, NITI Aayog, and Structural Reforms

Chronologically arrange the following major historical developments and policy milestones in Indian economic planning and structural reforms from the earliest to the latest:

  1. 1Formulation of the 'People's Plan' by M. N. Roy on behalf of the Indian Federation of Labour
  2. 2Establishment of the National Development Council (NDC) by an executive resolution
  3. 3Constitution of the Narasimham Committee (Committee on the Financial System) to recommend structural banking reforms
  4. 4Cabinet Resolution establishing NITI Aayog to replace the Planning Commission

Answer

The correct chronological sequence from earliest to latest is: 1. Formulation of the 'People's Plan' by M. N. Roy (1945), 2. Establishment of the National Development Council (1952), 3. Constitution of the Narasimham Committee on the Financial System (1991), and 4. Cabinet Resolution establishing NITI Aayog (2015).
The correct sequence follows the historical development of Indian economic planning: M. N. Roy formulated the People's Plan in 1945, followed by the setting up of the National Development Council in 1952. Decades later, structural economic reforms prompted the establishment of the Narasimham Committee in 1991, and finally, NITI Aayog was instituted in 2015 to replace the Planning Commission.

Step-by-Step Solution

1
Determine the date for the formulation of the 'People's Plan'.
M. N. Roy drafted the 'People's Plan' in 1945 during the pre-independence era.
It was a 10-year plan advocating nationalization of land and state-driven agricultural development.
2
Determine the establishment year of the National Development Council (NDC).
The NDC was set up on 6 August 1952.
It was created post-independence to provide a federal platform involving State Chief Ministers in plan approval.
3
Determine the setup date of the Narasimham Committee on Financial System Reforms.
The first Narasimham Committee was constituted in August 1991.
It laid the blueprint for financial sector liberalization, deregulation of interest rates, and reduction of SLR/CRR following the 1991 crisis.
4
Determine the creation date of NITI Aayog.
NITI Aayog was formed on 1 January 2015.
It replaced the 65-year-old Planning Commission to usher in a bottom-up approach to development.

Key Concept

Chronological Evolution of Planning Machinery, Committees, and Structural Reforms in India
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Topics

Economic Planning History, NITI Aayog, and Structural Reforms