Which of the following is not a characteristic of indicative planning ........

Economic Affairs Planning in India

Which of the following is not a characteristic of indicative planning?

The government sets targets for all sectors of the economy including those dominated by private enterprises

The emphasis is on consistency of the targets with each other

Given the consistency of targets with each other, the government directs the private enterprises to attain those targets

The government provides the right incentives to the private sector to attain the targets

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Explanation:

Indicative planning or planning by inducement is found in capitalist countries as well as in mixed economies, like India. After the termination of the Second World War (1939-45), indicative method of planning was advocated in capitalist countries. Indicative planning was attempted first in France. French planning had some sort of success as it attempted to fulfil the desires and expectations of the people with no force or compulsion.

Thus, the essence of indicative planning is that it recognises not only consumers’ sovereignty but also producers’ freedom so that the targets and priorities of the plans are achieved. It then involves a middle path of planning mechanism and market mechanism—a kind of coordination between private and public activities.