Five Year Plan

First Plan (1951-56)

  • The Plan began amidst three problems�influx of refugees, food shortage, and mounting. Harrod - Domar growth model was adopted.
  • The objectives of the Plan include
  1. To correct the disequilibrium in the Indian economy caused by the Second World war and the partition of the country;
  2. To achieve Self sufficiency in food grain production;
  3. To control Inflationary tendencies

Highest priority was accorded to agriculture, irrigation and power projects. 44.6% of total public sector outlay went to agriculture, irrigation and power. Target growth rate was 2.1% per annum while actually 3.5% per annum growth was realized.

Second Plan (1956-61)

  • The strategy for development was based on a model prepared by P.C. Mahalanobis using a two-sector (capital-goods-producing sector and the consumer-goods-producing sector) framework.
  • Adopted the socialistic pattern of society as the goal.

The objectives include:

  1. To secure an increase in national income by about 5 percent per annum;
  2. To initiate rapid industrialization with special emphasis on basic and heavy industries;
  3. To generate more employment opportunities;
  4. To reduce the growing inequalities in the distribution of income and wealth.
  5. To increase the rate of investment from 7 percent of National income to 11 percent of National income by 1960-61.
  • Realized growth rate was only 4.2 per cent per annum. The Second Plan strategy ran into difficulties in the late 1950s because of severe balance-of-payments problems and food shortages.

Third Plan (1961-66)

The objectives were:

  1. to secure a growth in National Income of over 5 percent per annum;
  2. to achieve self-sufficiency in food grains and to increase agricultural production to meet the requirements for industrial development and export promotion;
  3. to expand basic industries like steel, chemicals, fuel, and power and machine building capacity so that future industrial requirements can be satisfied domestically;
  4. to utilize manpower efficiently by generating more employment opportunities.
  • A series of crises like war with China (1962), death of Jawaharlal Nehru (1964), war with Pakistan (1965), severe drought 1965-66 hit the Plan.
  • Growth rate of only 2.8ft achieved as against a target of 5.6 % per annum.

Annual Plan (1966-69): Plan Holiday

The crisis-like situation prevailing in India during mid-1960s due to two successive wars with neighbouring countries followed by severe drought forced government to abandon five year plan temporarily (plan holiday) and resort to three successive Annual Plans beginning in 1966.

Increased defence expenditure along with acute shortage of food grains caused prices to soar. This had negative impact on industrial and agricultural growth. In 1966, Indian rupee was devalued with a view to raising exports from the country. However two memorable events occurred during his period: Green Revolution and nationalisation of 14 banks.

Annual Plans, however, realized 3.9% growth rate per annum.

Fourth Plan (1969-74)

Principal objectives were �growth with stability� and �progressive achievement of self-reliance�. Aimed at 5.7% per annum growth rate.

  • To attain self-sufficiency in agriculture and industry target growth rates per annum for these two sectors were at 5% for agricultural sector and 8-10% for industries.
  • To establish a buffer stock of food grains and enhance agricultural production so as to ensure regular supply of food grains and stable prices.
  • To create more employment opportunities.
  • To implement Family Planning Programme for checking population explosion.
  • To develop backward areas for balanced regional development.
  • To establish economic stability and distributive justice.
  • A growth rate of 3.2% per annum was realized.

Fifth Plan (1974-79)

Two main objectives were: removal of poverty and attainment of self-reliance.

  • Target growth rate was 4.4% per annum, while 4.7% growth rate was achieved. Minimum Needs Programme was launched during the Fifth Five Year Plan.
  • The Programme was designed to assist in raising living standards and in reducing the regional disparities in development.
  • The basic needs of the people identified for this programme were Elementary Education, Adult Education, Rural Health, Rural Roads, Rural Electrification, Rural Housing, Environmental Improvement of Urban Slums and Nutrition. Emphasis on development of agriculture and the industries producing commodities of mass consumption.
  • This Plan did face several roadblocks. Emergency was declared in 1975.on the ground of threat to national security.
  • Janata government came to power in 1977 and terminated this Plan and initiated the Sixth Plan based on �Rolling Plan� model. After the change of government in 1980, new Sixth Five-Year Plan was initiated in 1980.

Sixth Plan (1980-85)

  • To achieve higher rate of growth of economy by using available resources in the optimum fashion and by improving productivity.
  • Poverty alleviation was given the top priority.
  • To adopt modern technology for achieving economic and technical self-reliance. To reduce unemployment and under employment.
  • Schemes for transferring skills (TRYSEM) and assets (IRDP) and providing slack season employment (NREP).
  • Target growth rate was 5.2% while actual growth rate recorded 5.5% per annum.

Seventh Plan (1985-90)

  • Objectives include speedy achievement of growth, equity, social justice, self reliance and improved efficiency and productivity.
  • Special emphasis on creation of productive employment in farm as well as rural non-farm activities.
  • Economic liberalization process initiated for the first time on both domestic and external front. Promotion of exports received top priority as part of government�s outward-looking strategy.
  • Target average annual growth rate during the plan period was 5.0%. Realized growth rate (5.6%) exceeded the target.

Annual Plan (1990-92)

Eighth Plan could not take 1990 due to political and economic disturbances. New government assumed power in 1991, but could not commence Eighth Plan. Eighth Plan was rescheduled to begin in 1992. Annual Plans were formulated for the years 1990-91 and 1991-92. Major emphasis were placed on employment generation and social transformation.

Eighth Plan (1992-97)

  • In 1991, India faced a crisis in foreign exchange reserves, le with reserves of only C about US$1 billion), Government of India launched economic reforms. It was the beginning of privatization and liberalization in India.
  • Eighth Plan was launched in 1992 after the plan holiday during 1990-92. This is the first plan after the process of globalization and liberalization began in 1991.
  • Restructuring of the economy started through public sector reform. Market forces were allowed to play a greater role in this Plan.
  • Employment generation to be speeded up to achieve full employment by 2000. The English Plan was to walk on �two legs� � one leg of alleviating poverty and removing unemployment and the other �leg� providing a �safety net� for those who will be affected by the structural adjustment programme.
  • The plan had thus built in �the human face� element of adjustment. This plan achieved an average growth rate of 6.8%.

Ninth Plan (1997-2002)

Main focus was �Growth with Equity and Distributive Justice�. Four key areas were (a) Quality of life; (b) Employment Promotion; (c) Regional Imbalance; (d) Self-dependence.

Major objectives:

(a) To create productive employment;

(b) To give priority to the development of agriculture and villages for eradicating poverty;

(c) To keep prices stable and under control;

(d)To provide food and nourishment to all, especially to the weaker sections of the society;

(e) To provide the basic minimum services like clean drinking water, primary health care facility, universal primary education and housing;

(f)To ensure environmental balance by promoting people�s participation at all levels;

(g) To provide strength to the women and socially weaker sections so as to activate them as agents of economic development and social changes;

(h) To encourage and develop the mass participation institutions like the Panchayati institutions, co-operatives and voluntary organizations.

Total revised outlay was Rs.8,59,200 crore.

Average annual growth rate in GDP at factor cost recorded in Ninth Plan was 5.4. rose in agriculture, industry and services were 2.1%, 4.5% and 7.8%, respectively.

Tenth Plan (2002-2007)

The Tenth Plan (2002-07) was prepared against a back drop of high expectations arising from some aspects of the recent performance in the Indian economy.

  • Monitorable Targets for Tenth Plan and beyond:
  • Reduction of poverty ratio by 5 percentage points by 2007 and by 15 percentage points by 2012;
  • All children in school by 2003; all children to complete 5 years of schooling by 2007;
  • Reduction in gender gaps in literacy and wage rates by at least 50 per cent by 2007;
  • Increase in Literacy rates to 75 per cent within the Plan period;
  • Reduction of Infant mortality rate (IMR) to 45 per 1000 live births by 2007 and to 28 by 2012;
  • Reduction of Maternal mortality ratio (MMR) to 2 per 1000 live births by 2007 and to 1 by 2012;
  • Increase in forest and tree cover to 25 per cent by 2007 and 33 per cent by 2012;

Eleventh Plan (2007-12)

The Eleventh Plan began in very favourable circumstances with the economy having grown at the rate of 7.7% per year in the Tenth Plan period. However, many people were lacking the basic requirements for a decent living in terms of nutrition standards, access to education and basic health, and also to other public services such as water supply and sewerage. The Eleventh Plan seeks to remedy these deficiencies by seeking to accelerate the pace of growth while also making it more inclusive.

Written by princy

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