What Are The Salient Features Of Indicative Planning?

The planning which is made in socialist countries is hardly flexible one; if there is some distortion in one sectors it adversely affects the entire economy. As French indicative planning is based upon the establishment of relationship between private and public activities. Accordingly it is feasible thus removing the difficulties of controlled planning exercised in socialist countries. French system of planning is free from those troubles which are confronted under centralized planning, because it is based upon decentralization in the operation execution of national plans.

Indicative planning or what is called soft planning is distinctive of panning exercised in the mixed economies of third world countries. In such planning the state controls and regulates the private sector in a number of ways so that private sector may co-operate in fulfilling the targets and priorities of plan. The usual methods to control the private sector are licenses, quotas, price and quality determination of products and financial aids to firms etc. it means that under indicative planning the private sectors work under the directions of the state.
Under the indicative planning the private sector is neither legally controlled nor directed to fulfill the targets of the plan. The state provides all types of facilities to the private sector but does not regulate it, rather indicates the areas in which state can help in implementing the plan.