Investment and Financial Planning in India

Investment and financial planning in India has been successful to a very large extent, as is evident from the fact that in the present scenario, India is the 5th largest economy of the world.

The market in India offers very high potential for earning and growth in all the spheres of business. All this has been possible due to the proper financial and investment planning in India. The Ministry of finance regulates all the investment and financial planning in India. It is this ministry that formulates all the rules and regulations that are to be followed for financial investment in the country.

The National Common Minimum Program was formulated by the government of India, for planning investments and finances in India. This program had identified certain sectors which must be given more emphasis in order to boost investments and economic growth of the country. The National development council is an agency which had been set up by the Indian government in order to boost financial and investment planning in India.

The Indian Planning Commission, in the 4th and 5th five-year plans, has implemented investment and financial planning in India in such a manner that it has given huge amounts of resources to the states. But in the 9th and 10th five year plans, this financial assistance given to the states has been cut down sharply.

In the planning of finance and investment in India, the 9th five year plan did not lay down a definite investment pattern. Due to this it was not possible to gauge the investment requirements in the various sectors, the amount of investment that was likely to take place, and the sectors that will have insufficient or excess of funds.

In the 10th five year plan in India, investments had to be cut by 12.5% in important areas like manufacturing, agriculture, and power due to constraints in resources. However, it cannot be denied that Investment and financial planning in India has helped the country to grow economically.

Last updated on 4/28/2011