The Planning Commission and NITI Aayog are two key institutions in India's economic planning history. The transition from the Planning Commission to NITI Aayog marked a shift in India’s approach to development planning and governance.

Key Limitations

1. Non-Monetary Transactions: Activities such as barter trade and household work are not included, leading to an underestimation of economic activity.
2. Informal Sector Exclusion: The informal economy, which is significant in many countries, is often poorly accounted for.
3. Quality of Data: Data inaccuracies and incomplete reporting can distort national income calculations.
4. Environmental Costs: Depletion of natural resou

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1. Background

1. The economic crisis of 1991 due to high fiscal deficits, balance of payments issues, and low foreign reserves necessitated reforms.
2. The New Economic Policy (NEP) of 1991 introduced LPG reforms under the leadership of P.V. Narasimha Rao and Dr. Manmohan Singh.

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1. Introduction to Five-Year Plans

1. The Five-Year Plans were introduced post-independence to guide India's economic development.
2. Formulated and monitored by the Planning Commission, established in 1950.
3. Replaced by NITI Aayog in 2015, marking the end of the Five-Year Plan era.

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