Third Five Year Plan Volume I (Report) Government of Uttar Pradesh

Abstract

The basic aim of planning in under-developed countries in the initial stages of development is to break the vicious circle of poverty leading to low level of investment resulting in continued low per capita income. the essence of this process of transformation of a static and stagnant economy into a self-reliant and self-generating one lies in the effort to push up levels of investment which would increase per capita income, a part of this increase being made available for further investment. The increase in income level enables the economy to secure higher levels of investment without lowering per capita consumption. As investment proceeds, per capita income increases further and the rate of investment moves up to a point where the economy secures an adequate rate of growth of income.