Modi scraps Plan Comm; announces financial inclusion scheme

Soviet-style Planning Commission will be scrapped soon, Prime Minister Narendra Modi announced today while unveiling his economic agenda inviting global businesses to make India their manufacturing base and launching a financial inclusion scheme for poor families.
Addressing the nation from Red Fort, he said the 64-year old Planning Commission, a vestige of socialist era, would be soon replaced with a new institution to address the current economic challenges and strengthen the federal structure.
"We need a new body with a new soul... We will have to think about giving a new shape to the Planning Commission... Very soon this new institute will start working in place of Planning Commission," Modi said.

Seeking to integrate poor into formal banking channel, he announced 'Pradhan Mantri Jan Dhan Yojana' under which they will be provided a bank account with the facility of a debit card and a built-in insurance cover of Rs 1 lakh.
Modi invited the global business community to set up manufacturing facilities in India giving the slogan 'Come, Make in India'. He exhorted youth to become entrepreneurs and manufacture 'zero-defect' goods with a view to make the country a global export hub.
Announcing the abolition of Planning Commission, Modi said it was set up to cater to the needs of earlier times and has participated in its own way in the development of the country.

"The internal situation of the country has changed, global environment has changed. Government is no longer the centre of economic development. Economy is much more broadbased now. State government is also a centre of development. I feel it is a good sign. If we have to take India forward, then states have to be taken forward," Modi said.
Justifying the need to replace the Commission, Modi said: "Sometime it becomes necessary to repair a house. It costs a lot of money. But it does not give us satisfaction. Then we feel it is better to make a new house".