Five Year Plans In India

By: Unknown on 08:17

Overview:
             After our Independence, To develop Indian Economy fathers of development had to formulate 5 year plan. The five years plan in India are developed, executed, and monitored by Planning Commission.

Planning Commission of India:

• The Planning Commission was setup in March, 1950 by a resolution of the government of India.
• Makes an assessment of resources of the county and to see which resources are deficient.
• Formulates plans for the most effective and balanced utilization of country's resources.
• With the Prime Minister as the ex-officio Chairman, the commission has a nominated Deputy Chairman, who holds the rank of a Cabinet Minister.  

FIRST FIVE YEAR PLAN (1951-1956):

• In July, 1951 the Planning Commission presented a draft outline of a plan of development for the period of five years from April 1951 to March 1956.
• The first Prime Minister, Jawaharlal Nehru presented the first five year plan to the parliament on december 8 1951.
• This plan was based on the Harrod-Domar Model.
• Total planned budget was ₹2069 crore.
• National income increased more than the per captia income due to rapid population growth.

SECOND FIVE YEAR PLAN (1956-1961):

• The Second Plan, particularly in the development of the public sector.
• The plan followed the Mahalanobis model.
• The plan attempted to determine the optimal allocation of investment between productive sectors in order to maximise long-run economic growth.
• Hydroelectric power projects and five steel plants at Bhilai, Durgapur, and Rourkela were established.
• The total amount allocated under the Second Five-Year Plan in India was ₹48 billion.

THIRD FIVE YEAR PLAN (1961-1966):

• The approach to the Third Five Year Plan was similar to that used in the Second Plan. The official plan document of the Third Plan does not bring out any explicit attempt to use models such as those prepared by Mahalanobis.
• It also focused on the improvement of energy sector, mining, chemicals etc. Along with the industrialization, agriculture sector considered as a vital one.
• From the initial stage of third five year plan, India got maximum benefits. But unfortunately there happened two wars, against China in 1961 and against Pakistan in 1965. so, the unfavorable condition with drought created more complicated situation. And also the import of different commodities increased. The value of Indian currency also lost. These bad conditions made a bad result in the third five year plan.
• Due to miserable failure of the Third Plan the government was forced to declare "plan holidays" (from 1966–67, 1967–68, and 1968–69). 

FOURTH FIVE YEAR PLAN (1969-1974):

• The fourth five year plan highly concentrated on the social development including education, employment, development of marginalized people etc.
• During this time also India faced war against Bangladesh. Gradually the condition become more danger and India suffered the problem of inflation, natural calamities, post war issues etc.

FIFTH FIVE YEAR PLAN (1974-1979):

• The fifth plan was prepared and launched by D.D. Dhar.
• During the fifth five year plan, Indian economy was in a very bad condition.
• So, the main purpose was to eliminate the economic issues like price raising, shortage of supply in necessary commodities. 
• During this plan Indian national income increased by 5.2%
• The plan was terminated in 1987(instead of 1979) when Janta Party Govt. came into power. However the govt. laster for only 2 years. Congress govt. returned to power in 1980 and launched a different plan

SIXTH FIVE YEAR PLAN (1980-1985):

•  The plan aimed to improve the agriculture, industries, exports.
• Population control was a unique feature of this plan. This was done by promoting small families.

SEVENTH FIVE YEAR PLAN (1985-1990):

• The main objectives of the Seventh Five-Year Plan were to establish growth in areas of increasing economic productivity, production of food grains, and generating employment.
• There had been steady growth in agriculture, controls on the rate of inflation, and favourable balance of payments which had provided a strong base for the Seventh Five-Year Plan to build on the need for further economic growth. 
• The thrust areas of the Seventh Five-Year Plan were: social justice, removal of oppression of the weak, using modern technology, agricultural development, anti-poverty programs, full supply of food, clothing, and shelter, increasing productivity of small- and large-scale farmers, and making India an independent economy.

ANNUAL PLANS (1990-1992)
                              The Eighth Plan could not take off in 1990 due to the fast changing political situation at the centre and the years 1990-91 and 1991-92 were treated as Annual Plans. The Eighth Plan was finally launched in 1992 after the initiation of structural adjustment policies.

EIGHTH FIVE YEAR PLAN (1992-1997):

• The adoption of liberalization, privatization and globalization highly influenced this plan.
• This plan aimed development through constructing better transportation facilities, irrigation facilities, communication networks etc.

NINTH FIVE YEAR PLAN (1997-2002):

• This planning aimed the overall development of India with the support of decentralized administration.
• This plan also gave more importance for the service sector like education, health care etc.

TENTH FIVE YEAR PLAN (2002-2007):

• This plan was a continuation of the previous plans. India as a developing country attained a good growth rate. This plan was a successful one.
• Reduction of poverty rate by 5% by 2007.
• Providing gainful and high-quality employment at least to the addition to the labour force.

ELEVENTH FIVE YEAR PLAN (2007-2012):

• Rapid and inclusive growth.
• The performance of India during the recent financial crisis of 2008 was a model for others. 
• Indian growth rate arrived at near 10%. Once India host 2nd place in terms of GDP after China.

TWELFTH FIVE YEAR PLAN (2012-2017):

• This is the current five year plan of India.
• According to this India aimed to attain 9% growth. But the recent economic conditions is not favorable.
• The government intends to reduce poverty by 10% 

SUMMARY

Plan	Notes
First Plan(1951 - 56) Target Growth: 2.1% Actual Growth: 3.6%	It was based on Harrod-Domar Model.
	Community Development Program launched in 1952
	Focus on agriculture, price stability, power and transport
	It was a successful plan primarily because of good harvests in the last two years of the plan
Second Plan(1956 - 61) Target Growth: 4.5% Actual Growth: 4.27%	Also called Mahalanobis Plan named after the well known economist
	Focus - rapid industrialization
	Advocated huge imports through foreign loans.
	Shifted basic emphasis from agriculture to industry far too soon.
	During this plan, prices increased by 30%, against a decline of 13% during the First Plan
Third Plan (1961 - 66) |Target Growth: 5.6% Actual Growth: 2.4%	At its conception, it was felt that Indian economy has entered a take-off stage. Therefore, its aim was to make India a 'self-reliant' and 'self-generating' economy.
	Based on the experience of first two plans, agriculture was given top priority to support the exports and industry.
	Complete failure in reaching the targets due to unforeseen events - Chinese aggression (1962), Indo-Pak war (1965), severe drought 1965-66
Three Annual Plans (1966-69)  Plan holiday for 3years.	Prevailing crisis in agriculture and serious food shortage necessitated the emphasis on agriculture during the Annual Plans
	During these plans a whole new agricultural strategy was implemented. It involving wide-spread distribution of high-yielding varieties of seeds, extensive use of fertilizers, exploitation of irrigation potential and soil conservation.
	During the Annual Plans, the economy absorbed the shocks generated during the Third Plan
	It paved the path for the planned growth ahead.
Fourth Plan(1969 - 74) Target Growth: 5.6% Actual Growth: 3.30%	Main emphasis was on growth rate of agriculture to enable other sectors to move forward
	First two years of the plan saw record production. The last three years did not measure up due to poor monsoon.
	Influx of Bangladeshi refugees before and after 1971 Indo-Pak war was an important issue
Fifth Plan(1974-79) Target Growth: 4.4% Actual Growth: 5.0%	The fifth plan was prepared and launched by D.D. Dhar.
	It proposed to achieve two main objectives: 'removal of poverty' (Garibi Hatao) and 'attainment of self reliance'
	Promotion of high rate of growth, better distribution of income and significant growth in the domestic rate of savings were seen as key instruments
	The plan was terminated in 1978 (instead of 1979) when Janta Party Govt. rose to power.
Rolling Plan (1978 - 80)	There were 2 Sixth Plans. Janta Govt. put forward a plan for 1978-1983. However, the government lasted for only 2 years. Congress Govt. returned to power in 1980 and launched a different plan.
Sixth Plan(1980 - 85) Target Growth: 5.2% Actual Growth: 5.4%	Focus - Increase in national income, modernization of technology, ensuring continuous decrease in poverty and unemployment, population control through family planning, etc.
Seventh Plan(1985 - 90) Target Growth: 5.0% Actual Growth: 6.01%	Focus - rapid growth in food-grains production, increased employment opportunities and productivity within the framework of basic tenants of planning.
	The plan was very successful, the economy recorded 6% growth rate against the targeted 5%.
Eighth Plan(1992 - 97) Target Growth: 5.6% Actual Growth: 6.78%	The eighth plan was postponed by two years because of political uncertainty at the Centre
	Worsening Balance of Payment position and inflation during 1990-91 were the key issues during the launch of the plan.
	The plan undertook drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6%
	Some of the main economic outcomes during eighth plan period were rapid economic growth, high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit.
Ninth Plan(1997- 2002) Target Growth: 7.1% Actual Growth: 6.8%	It was developed in the context of four important dimensions: Quality of life, generation of productive employment, regional balance and self-reliance.
Tenth Plan(2002 - 2007) Target Growth: 8.1% Actual Growth: 7.7%	Goals:
	To achieve 8% GDP growth rate
	Reduction of poverty ratio by 5 percentage points by 2007.
	Providing gainful high quality employment to the addition to the labour force over the tenth plan period.
	Universal access to primary education by 2007.
	Reduction in gender gaps in literacy and wage rates by atleast 50% by 2007.
	Reduction in decadal rate of population growth between 2001 and 2011 to 16.2%.
	Increase in literacy rate to 72% within the plan period and to 80% by 2012.
	Reduction of Infant Mortality Rate (IMR) to 45 per 1000 live births by 2007 and to 28 by 2012.
	Increase in forest and tree cover to 25% by 2007 and 33% by 2012.
	All villages to have sustained access to potable drinking water by 2012.
	Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012.
Eleventh Plan (2007 - 2012)	Goals:
	Accelerate GDP growth from 8% to 10%. Increase agricultural GDP growth rate to 4% per year.
	Create 70 million new work opportunities and reduce educated unemployment to below 5%.
	Raise real wage rate of unskilled workers by 20 percent.
	Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12. Increase literacy rate for persons of age 7 years or above to 85%.
	Lower gender gap in literacy to 10 percentage point. Increase the percentage of each cohort going to higher education from the present 10% to 15%.
	Reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000 live births
	Reduce Total Fertility Rate to 2.1
	Provide clean drinking water for all by 2009. Reduce malnutrition among children between 0-3 years to half its present level. Reduce anaemia among women and girls by 50%.
	Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17
	Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are women and girl children
	Ensure all-weather road connection to all habitation with population 1000 and above (500 in hilly and tribal areas) by 2009, and ensure coverage of all significant habitation by 2015
	Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012
	Increase forest and tree cover by 5 percentage points.
	Attain WHO standards of air quality in all major cities by 2011-12.
	Treat all urban waste water by 2011-12 to clean river waters.
	Increase energy efficiency by 20 percentage points by 2016-17.
Twelfth Plan(2012–2017) Target Growth: 8.2%	The growth rate in the first year of the 12th Plan (2012-13) is 6.5 to 7 percent.