FIVE YEAR PLANS
Economic planning in India started after independence in the year 1950 when it was deemed necessary for the economic growth and development of the nation. Planning Commission was set up on 15 March 1950 and the plan era started from 1 April 1951 with the launching of the First Five Year Plan (1951-56).
TIMELINE:
The first attempt to initiate economic planning in India was made by Sir M. Visvesvaraya in 1934 through his book, Planned Economy for India. In 1944, ‘Bombay Plan’ was presented by 8 leading industrialists of Bombay. In 1945, ‘People’s Plan’ was given by MN Roy. In 1950, ‘Sarvodaya Plan’ was given by JP Narayan. The concept of the planning is based on the Russian Model initiated by Joseph Stalin. The Planning Commission was set up in 1950 with Jawaharlal Nehru as its first chairman.
Long term objectives of 5 Year Plans in India are:
- High Growth rate to improve the living standard of the residents of India.
- Economic stability for prosperity.
- Self-reliant economy.
- Social justice and reducing the inequalities.
- Modernization of the economy.
The First Plan (1951-56)
Objective: Rehabilitation of refugees, rapid agricultural development to achieve food self-sufficiency in the shortest possible time, and control of inflation. It gave priority to agricultural development. Community Development Programme and Family Planning Programme were launched in 1952. National Extension Service was launched in 1953. Bhakra Nangal, Hirakud and Damodar Valley Projects were launched. Five Indian Institutes of Technology (IITs) were started as major technical institutions.
The Second Plan (1956-61)
The Nehru-Mahalanobis model was adopted. Rapid industrialization with particular emphasis on the development of basic and heavy industries Industrial Policy of 1956 accepted the establishment of a socialistic pattern of society as the goal of economic policy. The three important steel plants of India were built at Durgapur with British help, Bhilai with Russian help and Rourkela with German help.
The Third Plan (1961-66)
It failed because of the Chinese aggression in 1962 and the conflict with Pakistan in Panchayat elections were started. State electricity boards and state secondary education boards were formed.
Plan Holidays – Annual Plans (1966-1969)
A new agricultural strategy was implemented. It involved the distribution of high-yielding varieties of seeds, extensive use of fertilizers, exploitation of irrigation potential, and soil conservation measures.
The Fourth Plan (1969-74)
Growth with Stability and progressive achievement of self-reliance. Growth Target: 5.5% (Achieved :3.5%). The Indira Gandhi government nationalized 14 major Indian banks and the Green Revolution in India advanced agriculture. It also failed due to the Indo-Pak War of 1971.
The Fifth Plan (1974-79)
It is associated with Indira Gandhi’s Slogan of “Garibi Hatao”. Indira Gandhi launched the 20-point programmes during this plan. self-sufficiencyin food-grains was the major achievement of this plan. The Indian national highway system was introduced for the first time.The plan was terminated in 1978 by the Janata Government, and they started The Rolling Plan.
The Sixth Plan (1980-85)
Elimination of unemployment and poverty was its objective. Family planning was also expanded in order to prevent overpopulation.
The Seventh Plan (1985-90)
Emphasis on policies and programs that would accelerate the growth in food grains production, increase employment opportunities and raise productivity. With a growth rate of 6%, this plan was proved successful in spite of severe drought conditions for the first three years consecutively. This plan introduced programs like Jawahar Rozgar Yojana.
Annual Plans (1989-1991)
No plan due to political uncertainties. It was the beginning of privatization and liberalization in India.
The Eighth Plan (1992-97)
Rapid economic growth, high growth of agriculture and allied sector, and the manufacturing sector. Growth in exports and imports, improvement in trade, and current account deficit to undertake an annual average growth of 5.6%.
The Ninth Plan (1997-2002)
The slogan of this plan was to achieve Growth with Equity. It was developed in the context of four important dimensions: Quality of life, generation of productive employment, regional balance, and self-reliance. It achieved a GDP growth rate of 5.4%, lower than the target. Yet, industrial growth was 4.5% which was higher than the targeted 3%. The service industry had a growth rate of 7.8%. An average annual growth rate of 6.7% was reached.
The Tenth Plan (2002-07)
The Strategy of this plan was to make India one of the ten fastest growing nations. The main elements in the strategy of the tenth plan was to increase the rate of growth of national incomes and per capita income. It was successful in reducing the poverty ratio by 5%, increasing forest cover to 25%, increasing literacy rates to 75 %, and the economic growth of the country over 8%.
The Eleventh Plan (2007-12)
The theme of the plan was ‘Towards Faster and More Inclusive Growth’. The main elements in the strategy of the eleventh plan are: to achieve rapid growth and to bring general improvement in living conditions of the masses. to ensure that benefits of growth reach all sections of population, especially rural areas. promoting foreign investment for achieving faster growth in the economy. India has recorded an average annual economic growth rate of 8%, farm sector grew at an average rate of 3.7% as against the 4% targeted. The industry grew with an annual average growth of 7.2% against the 10% targeted.
Twelfth Five-Year Plan
The duration of the twelfth five-year plan is from 1st April 2012 to 31st March 2017. The Slogan of the 12th Plan is ‘Faster, Sustainable and More Inclusive Growth’. The priority areas of this plan are: Agriculture, Irrigation, Manufacturing, Education, Health, Innovation and Infrastructure. The NDA government has dissolved the Planning Commission which was replaced by the NITI Aayog. Thus, there was no thirteen Five Year Plan, however, the five-year defence plan was made.
