The basic difference between imperative and indicative planning is that:
(a) it is easier to achieve targets in imperative type of planning
(b) in the case of imperative planning, all economic activities belong to public sector, while in the other type they belong to the private sector
(c) 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
(d) in the case of indicative planning, there is no need to nationalise any industry
