The difference between Macro-economic and Micro-economic Planning are :
Macro-economic planning is concerned with the economy as whole and its major sectors. Its goals also affect the entire economy. For example full employment, equilibrium in the balance of payments, development of agriculture or industry, a certain rate of overall economic growth, etc., are macro objectives. It does not pay much attention to what happens to individual prices or individual industries as long as the general price level remains constant or the overall growth rate is maintained.
About this type of planning, Grossman comments, “being unconcerned with detail, macro-economic planning tends not to affect individual firms or even industries directly, though it very much affects them indirectly. Hence it enlists less intense attention on the part of individual interest groups, which may be both an advantage and a disadvantage for its launching and success.”
Micro-economic planning concerns itself with a certain firm, or a sector or a particular region, in the U.S.A., such micro-planning is quite common. Even a firm resorts to micro planning in order to achieve a proper allocation of resources. In India, the present clamour for block level planning is an example of micro- planning. For achieving a specific purpose micro planning is particularly suitable.