In line with the Soviet Union's approach, India's Planning Commission adopted a system of five-year plans (FYPs). The concept is straightforward: the Indian government formulates a comprehensive document outlining its financial projections and allocations for the next five years. This entails dividing the budgets of the central and state governments into two categories: the 'non-plan' budget, which covers annual routine expenditures, and the 'plan' budget, which is allocated over the course of five years based on predetermined priorities set by the plan. By implementing a five-year plan, the government gains the advantage of being able to focus on the broader perspective and make sustained interventions in the economy for long-term development.

What approach did India's Planning Commission adopt for economic planning?

Soviet Union's approach

India's Planning Commission adopted for Soviet Union's approach for economic planning.