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. The basic difference between imperative and indicative
planning is that
(a) In the case of the imperative planning the market
mechanism is entirely replaced by a command hierarchy, while
in the case of indicative planning, it is looked upon as a
way to improve the functioning of the market system.
(b) In the case of indicative planning there is no need to
nationalize any industry
(c) In the case of imperative planning all economic
activities belong to public sector, while in the other type
they belong to the private sector
(d) It is easier to achieve targets in imperative type of
planning
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Answer Posted / rs
In indicative planning, planning commission fixes some specific target, but there is no compulsion to achieve this target, where as in imperative planning there is compulsion to achieve this target
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