The need for planning was felt when India achieved its independence in 1947. Consequently taking inspiration from the socialistic countries lie Soviet Union the Government decided to introduce the system of Five-Year Plans with broad objectives :(a) to increase national income, (b) to improve per capita income, (c) to expand employment opportunities, (d) to reduce inequalities of income and wealth, and concentration of economic power, (e)to eradicate poverty, (f) to raise agricultural production, (g) to industrialise the economy, (h) to achieve balanced regional development, and (i) to achieve self-reliance so as to minimize the dependence on the foreign aids.
Although the priorities under individual plans keep on changing depending upon demands of the time, the basic objectives of the planning, viz., growth, modernization, self-reliance and social justice are almost fixed.