Five-Year Plans of India - 15 Mints Seminar Notes

Five-Year Plans of India - 15 Mints Seminar Notes

 

From 1947 to 2017, the Indian economy was premised on the concept of planning. This was carried through the Five-Year Plans, developed, executed, and monitored by the Planning Commission (1951-2014) and the NITI Aayog (2015-2017). With the prime minister as the ex-officio chairman, the commission has a nominated deputy chairman, who holds the rank of a cabinet minister. Montek Singh Ahluwalia is the last deputy chairman of the commission (resigned on 26 May 2014). The Twelfth Plan completed its term in March 2017.[1] Prior to the Fourth Plan, the allocation of state resources was based on schematic patterns rather than a transparent and objective mechanism, which led to the adoption for the Gadgil formula in 1969. Revised versions of the formula have been used since then to determine the allocation of central assistance for state plans.[2] The new government led by Narendra Modi, elected in 2014, has announced the dissolution of the Planning Commission, and its replacement by a think tank called the NITI Aayog (an acronym for National Institution for Transforming India).

First Plan (1951 - 1956)

Objective:

The First Five-year plan focused on the development of primary sector
1. Irrigation and energy
2. Agriculture and community development
3. Transport and communications
4. Industry
5. Social services
6. Rehabilitation of landless farmers
7. Other sectors and services

Second Plan (1956 – 1961)

Objective:

The Second Five-year plan focused on the development of the public sector and rapid Industrialization

Third Plan (1961 – 1966)    

Objective:

The Third Five-year Plan stressed agriculture and improvement in the production of wheat, but the brief Sino-Indian War of 1962 exposed weaknesses in the economy and shifted the focus towards the defense industry and the Indian Army. In 1965–1966, India fought a War with Pakistan. There was also a severe drought in 1965. The war led to inflation and the priority was shifted to price stabilization.

Plan Holidays (1966 -1969)    

Objective:

1. Due to miserable failure of the Third Plan the government was forced to declare "plan holidays" (from 1966 to 1967, 1967–68, and 1968–69). Three annual plans were drawn during this intervening period.

2. During 1966–67 there was again the problem of drought. Equal priority was given to agriculture, its allied activities, and industrial sector.

Fourth Plan (1969 – 1974)    

Objective:

The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.

Fifth Plan (1974 – 1978)    

Objective:

1. The Fifth Five-Year Plan laid stress on employment, poverty alleviation (Garibi Hatao), and justice.

2. The plan also focused on self-reliance in agricultural production and defense. In 1978 the newly elected Morarji Desai government rejected the plan.

3. The Electricity Supply Act was amended in 1975, which enabled the central government to enter into power generation and transmission.

4. The Indian national highway system was introduced

Rolling Plan (1978 – 1980)    

Objective:

1.  The Janata Party government rejected the Fifth Five-Year Plan and introduced a new Sixth Five-Year Plan (1978–1980). This plan was again rejected by the Indian National Congress government in 1980 and a new Sixth Plan was made.

2. The Rolling Plan consisted of three kinds of plans that were proposed.

    i) The First Plan was for the present year which comprised the annual budget

   ii) The Second was a plan for a fixed number of years, which may be 3, 4 or 5 years. The Second Plan kept changing as per the requirements of the Indian economy.

  iii) The Third Plan was a perspective plan for long terms i.e., for 10, 15 or 20 years.

Sixth Plan (1980 – 1985)    

Objective:

1. The Sixth Five-Year Plan marked the beginning of economic liberalization.

2. Price controls were eliminated, and ration shops were closed. This led to an increase in food prices and an increase in the cost of living. This was the end of Nehruvian socialism.

3. The National Bank for Agriculture and Rural Development was established for development of rural areas

Seventh Plan (1985 – 1990)    

Objective:

1. The Seventh Five-Year Plan laid stress on improving the productivity level of industries by upgrading of technology.

2. 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 through "Social Justice".

Annual Plans (1990 – 1992)    

Objective:

The Eighth Plan could not take off in 1990 due to the fast-changing economic situation at the Centre and the years 1990–91 and 1991–92 was treated as Annual Plans.

Eighth Plan (1992 – 1997)    

Objective:

The Eighth Five-year plan majorly focused on the Modernization of Industries

Ninth Plan (1997 – 2002)

Objective:

The Ninth Five-year Plan tried primarily to use the latent and unexplored economic potential of the country to promote economic and social growth.

Tenth Plan (2002 – 2007)    

Objective:

The main objectives of the Tenth Five-Year Plan

1. Attain 8% GDP growth per year.

2. Reduction of poverty rate by 5% by 2007.

3. Providing gainful and high-quality employment at least to the addition to the labour force.

4. Reduction in gender gaps in literacy and wage rates by at least 50% by 2007.

5. 20-point program was introduced.

Eleventh Plan (2007 – 2012)    

Objective:

The main objectives of the Eleventh Five-Year Plan

1. It aimed to increase the enrolment in higher education of 18–23 years of age group by 2011–12.

2. It focused on distant education, convergence of formal, non-formal, distant and IT education institutions.

3. Rapid and inclusive growth (poverty reduction).

4. Emphasis on social sector and delivery of service therein.

5. Empowerment through education and skill development.

6. Reduction of gender inequality.

7. Environmental sustainability.

8. To increase the growth rate in agriculture, industry and services to 4%, 10% and 9% respectively.

9. Reduce total fertility rate to 2.1.

10. Provide clean drinking water for all by 2009.

11. Increase agriculture growth to 4%.

Twelfth Plan (2012 – 2017)    

Objective:

The Twelfth Five-Year Plan of the Government of India has been decided to achieve a growth rate of 9% but the National Development Council (NDC) on 27 December 2012 approved a growth rate of 8%

Future (N/A)    

Objective:

With the Planning Commission dissolved, no more formal plans are made for the economy, but Five-Year Defense Plans continue to be made.

The latest would have been 2017–2022. However, there is no Thirteenth Five-Year Plan.

Presented by

Jayasree

TNPSC Student

Magme School of Banking