Following are some of the important functional factors responsible for adoption of decentralised planning in the present context in India:
- Considering the huge size and proportion of rural population in India, it is felt that proper linkages must be established between dispersed small villages and also between such villages and adjacent small towns by developing appropriate infrastructural facilities such as feeder roads, improved transport facilities, marketing and storage facilities, health and sanitation facilities and other welfare centres. Under decentralised planning better linkages between villages and small towns can be developed under local conditions, priorities and resources.
- Decentralised planning is considered as more realistic as it maintains a close coordination between locally available resources, local skills, local manpower and local requirements. It is considered as a flexible one as it is easily adjustable and adaptable under the changing local conditions and requirements. Moreover, it is considered as the practical one as it can fulfill the normal requirements of the rural population. Adaptation and flexibility of planning largely depends upon the environment prevailing in each region and sub-region. Thus decentralised planning can achieve the best result in implementing plan projects at the local level.
- Decentralised planning is suitable for the development of agricultural and allied activities such as animal husbandry, horticulture, fisheries, forestry along with development of village and cottage industries.
- Decentralised planning can promote active participation of local people in implementing various local plans and programmes. Thus it can enhance the involvement of local communities in such development activities.
- Under decentralised planning, wastage of resources can be reduced to a minimum level as the people participating in these developmental activities keep a close watch over the utilisation of fund as well also on the implementation of plan projects.
- Decentralised planning can show more trickle down or percolation effects in respect of poverty alleviation programmes and employment generation in rural areas as in this type of planning, various projects are selected for generating huge productive employment opportunities in the rural areas.
- Decentralised planning is helpful in raising the level of social services by launching various programmes of health, nutrition, drinking water, education etc. in a more effective, quicker and sustainable manner.
- Decentralised planning is more helpful in utilizing the various non-conventional energy sources such as solar power, wind, animal and plant wastes etc. in rural areas. Such utilisation of non-conventional energy sources requires various agencies which can work in close association with communities in villages and small towns and also can provide necessary technical and financial support from such agencies. Decentralised planning can pave the way for utilisation of such resources.