What we will learn ?
The Five-Year Plans are the most significant components of central planning, and they are constantly executed to obtain the intended results. The accomplishments of the five-year programmes are listed below.
Five-Year | Plan Objectives | Assessment |
First Plan 1951-1956 | Rehabilitation of refugees, quick agricultural growth to attain food self-sufficiency, inflation management, and prioritisation of irrigation and power projects. | • The plan aimed for a 2.1 per cent growth rate and attained a 3.6 per cent growth rate. • The government was given an active role in all economic area. • Five Indian Institutes of Technology (IITs) were established, as premier technological institutes. |
Second Plan 1956-1961 | • The policy emphasised fast industrialisation, with a concentration on heavy industries and capital goods. | • The target growth rate was 4.5 per cent, whereas the actual rate was 4.27 per cent. • It could not be fully executed due to inadequate availability of foreign exchange. • Hydroelectric power plants and five steel plants were built in Bhilai, Durgapur, and Rourkela. |
Third Plan 1961–1965 | • The plan’s key goals were boosting national income, by more than 5 per cent per annum. • Increasing agricultural productivity and achieving self-sufficiency in food grains. • Expansion of basic industries. | • The third five-year plan’s projected growth rate was 5.6 per cent, while the actual growth rate was 2.4 per cent, owing to the wars and the drought conditions.
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Plan Holidays – Annual Plans 1966-1969 | • The larger objectives of these Annual Plans were integrated into the Fourth Plan. • A new agricultural strategy was implemented, including the distribution of high-yielding seed varieties, extensive fertiliser usage, irrigation potential exploitation, and soil conservation measures. | • An annual plan, also known as a plan holiday, is a time in which the government abandons normal five-year planning in favour of yearly plans. • The government may choose for annual plans because it does not have enough resources to allocate according to the five-year plan. |
Fourth Plan 1969-1974 | • The Plan was based on the Gadgil strategy, with a special emphasis on the ideas of growth with stability and progress toward self-reliance. • Growth with stability and progressive achievement of self-reliance were major objectives of the fourth five year plan. | • Droughts and the Indo-Pak War of 1971–72 compelled the economy to diversify capital, causing a financial crunch for the Plan. • The fourth five-year plan’s target growth rate was 5.6 per cent, while the actual growth rate was 3.3 per cent. |
Fifth Plan 1974-1979 | • The plan’s emphasis has been on poverty reduction and self-reliance. • The plan emphasised agriculture. | • The Indira Gandhi administration nationalised 14 major Indian banks, and the Green Revolution in India boosted agriculture. • The targeted growth rate was 5.2 per cent, while the actual growth rate was 5.5 per cent. |
Sixth Plan 1980-1985 | • The strategy was established under the phrase ‘Garibi Hatao’, and family planning was broadened to combat population growth. | • The plan began with a ‘target group’ strategy, as well as the implementation of many national level programmes and schemes addressing specific problems and areas of development. Most objectives were met with 5.5 per cent growth. |
Seventh Plan 1985-1990 | • The plan’s major objective was to improve growth in areas such as boosting economic productivity, increasing food grains, and creating jobs through social justice. | • The Jawahar Rojgar Yojana (JRY) was begun in 1989 with the goal of creating wage employment for rural impoverished people. • The target growth rate was 5 per cent, while the actual growth rate was 6 per cent.
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Annual Plans 1989-1991 | • The Eighth Plan could not take off due to the ‘fast-changing political environment at the Centre. • The primary focus was on increasing employment and social reform. | • It marked the start of privatisation and liberalisation in India. |
Eighth Plan 1992-1997
| • Rapid economic growth, rapid expansion in agricultural and associated industries, rapid growth in the manufacturing sector, increased exports and imports, reduction in trade and current account deficits were the objectives of the plan. | • It introduced the indicative planning concept in India. • To bring about economic reform, LPG policies (Liberalisation, Privatisation, and Globalisation) were implemented. • The target growth rate was 5.6 per cent, while the actual growth rate was 6.7 per cent. |
Ninth Plan 1997-2002 | • The ninth five-year plan’s primary objective was “growth with justice and equity.” • There was an emphasis on the seven identified Basic Minimum Services (BMS), with additional Central Assistance for these services with the vision of attaining complete coverage of the population in a timebound manner. | • The issue of fiscal consolidation became a top priority of the governments for the first time. • Was introduced during an overall ‘slowdown’ in the economy caused by the Southeast Asian Financial Crisis (1996–97). • The ninth plan’s target growth rate was 7.1 per cent, whereas the actual growth rate was 6.8 per cent. |
Tenth Plan 2002 –2007 | • The top priorities were to achieve strong growth rates, reduce poverty rates by 5 per cent (by 2007), provide gainful and high-quality employment, and eliminate gender inequalities in literacy and wage rates by at least 50 per cent by 2007. | • The actual growth rate was 7.7 per cent, compared to the target of 8.1 per cent. |
Eleventh Plan 2007-2012 | • The primary objectives were to achieve quicker and more inclusive growth. | • The Planning Commission expressed worry about meeting growth expectations as a result of the Fiscal Responsibility and Budget Management Act. • It achieved 7.5 per cent GDP growth, which was less than the target of 9 percent. |
Twelfth Plan 2012-2017 | • “Faster, more inclusive, and sustainable growth” was the underlying theme. • Increasing agricultural production by 4 per cent, manufacturing sector growth by 10 per cent, and increasing over 88,000 MW of electricity generation capacity. | • This plan’s target was 8 per cent, while the actual achievement was 6.7 per cent.
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Planning is a vital component of every economy and is carried out at many levels. Depending on the goal, planning may be categorised into several types.
Similarly, planning may be sectoral as well as geographical. While sectoral planning focuses on a single sector of the economy, spatial planning focuses on development in the geographical context (which aims at influencing the distribution of people and activities in places).
Some of the key forms of planning that are a part of the Indian planning process are as follows:
India, there are three key sources of funds available for funding Economic Plans:
I. Domestic Budgetary Sources
II. Deficit Financing and
III. Foreign Assistance
I. Domestic Budgetary Sources
Domestic budgetary resources contributed the most to plan financing among the three primary sources.
II. Deficit Financing
III. Foreign Assistance
The National Institution for Transforming India (NITI Aayog)
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