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Various 5 Years Plans

Various 5 Years Plans

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Published by Sachin Kumar Bassi

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Published by: Sachin Kumar Bassi on Apr 19, 2011
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Five-year plans of India
Theeconomy of Indiais based in part on planningthrough its
,developed, executed and monitored by thePlanning Commission. With thePrime  Minister as theex officioChairman, the commission has a nominated Deputy Chairman, who has rank of aCabinetminister.Montek Singh Ahluwaliais currently the Deputy Chairman of the Commission. The tenth plan completed its term in March 2007 and theeleventh plan is currently underway.
First plan (1951-1956)
The first Indian Prime Minister,Jawaharlal Nehrupresented the first five-year plan to theParliament of Indiaon December 8, 1951. The total plan budget of 206.8 billionINR   (23.6 billionUSDin the 1950exchange rate) was allocated to seven broad areas: irrigationandenergy(27.2 percent),agricultureandcommunity development(17.4  percent),transportandcommunications(24 percent),industry(8.4 percent),social  services(16.64 percent),land rehabilitation4.1 percent), and other (2.5 percent). The target growth rate was 2.1 percent annualgross domestic product(GDP) growth; theachieved growth rate was 3.6 percent. During the first five-year plan thenet domestic  productwent up by 15 percent. Themonsoonswere good and there were relatively high crop yields, boosting exchange reserves and per capita income, which went up 8 percent. Lower increase of per capita income as compared to national income was due to rapid population growth. Many irrigation projects were initiated during this period, includingtheBhakra Dam,Hirakud Dam, andMettur DaminSouth India.TheWorld Health  Organization, with the Indian government, addressed children's health and reducedinfant  mortality, contributing to population growth.At the end of the plan period in 1956, fiveIndian Institutes of Technology(IITs) werestarted as major technical institutions.University Grant Commissionwas set up to takecare of funding and take measures to strengthen the higher education in the country.
Second plan (1956-1961)
The second five-year plan focused on industry, especiallyheavy industry. Domestic production of industrial products was encouraged, particularly in the development of the public sector .The plan attempted to determine the optimal allocation of investment between productive sectors in order to maximise long-run economic growth .TheAtomic Energy Commissionwas formed in 1957 withHomi J. Bhabhaas the first chairman. TheTata Institute of Fundamental Researchwas established as aresearch  institute. In 1957 a talent search andscholarshipprogram was begun to find talented young students to train for work in nuclear power.
Third plan (1961-1966)
The third plan stressed on agriculture and improving production of rice, but the brief Sino-Indian War in 1962 exposed weaknesses in the economy and shifted the focustowardsdefense.In 1965-1966, theGreen Revolution in Indiaadvanced agriculture. The war led to inflation and the priority was shifted to price stabilization. The construction of damscontinued. Manycementandfertilizer plants were also built.Punjabbegun  producing an abundance of wheat. Many primary schoolswere started in rural areas. In an effort to bring democracy to the grassroot level,Panchayatelections were started andthestateswere given more development responsibilities.State electricity boards and state secondary education boards were formed. States weremade responsible fosecondaryandhigher education. State road transportation corporations were formed and local road building became a state responsibility. Grossrate during this duration was lower at 2.7% due to 1962Sino-Indian War andIndo- Pakistani War of 1965.
Fourth plan (1969-1974)
At this timeIndira Gandhiwas thePrime Minister . The Indira Gandhi government nationalized19 major Indian banks. In addition, the situation inEast Pakistan(now independentBangladesh) was becoming dire as theIndo-Pakistani War of 1971and Bangladesh Liberation War took place.Funds earmarked for the industrial development had to be used for the war effort. Indiaalso performed theSmiling Buddha underground nuclear testin 1974, partially in response to theUnited Statesdeployment of theSeventh Fleetin theBay of Bengalto warn India against attackingWest Pakistanand widening the war.
Fifth plan (1974-1979)
Stress was laid onemployment,povertyalleviation, andjustice. The plan also focused on self-reliancein agricultural production and defense. In 1978 the newly electedMorarji  Desaigovernment rejected the plan. Electricity Supply Act was enacted in 1975, whichenabled the Central Government to enter into power generation and transmission.
Sixth plan (1980-1985)
Called theJanatagovernment plan, the sixth plan marked a reversal of the Nehruvianmodel. TheIndian national highway systemwas introduced for the first time and manyroads were widened to accommodate the increasingtraffic. Tourismalso expanded. The sixth plan also marked the beginning of economic liberalization.Price controlswere eliminated and ration shops were closed. This led to an increase in food prices and anincreasedcost of living.Family planningalso was expanded in order to preventoverpopulation. In contrast to China's harshly-enforcedone-child policy, Indian policy did not rely on the threat of force. More prosperous areas of India adopted family planning more rapidly than less prosperous areas, which continued to have a highbirth rate.
Seventh plan (1985-1989)
The Seventh Plan marked the comeback of theCongressParty to power. The plan laystress on improving the productivity level of industries by upgradation of technology.
Period between 1989-91
1989-91 was a period of political instability in India and hence no five year plan wasimplemented. Between 1990 and 1992, there were only Annual Plans. In 1991, Indiafaced a crisis inForeign Exchange(Forex) reserves, left with reserves of only about $1 billion (US). Thus, under pressure, the country took the risk of reforming the socialisteconomy.P.V. Narasimha Rao)(28 June 1921 – 23 December 2004) also called Father of Indian Economic Reforms was the twelfth Prime Minister of the Republic of India andhead of Congress Party,and led one of the most important administrations in India'smodern history overseeing a major economic transformation and several incidentsaffecting national security. At that time Dr.Manmohan Singh(currently, Prime Minister of India) launched India's free market reforms that brought the nearly bankrupt nation back from the edge. It was the beginning of  privatizationandliberalizationin India.
Eighth plan (1992-1997)
Modernizationof industries was a major highlight of the Eighth Plan. Under this plan, thegradual opening of the Indian economy was undertaken to correct the burgeoningdeficit and foreign debt. Meanwhile India became a member of theWorld Trade Organization on 1 January 1995. The major objectives included, containing population growth, povertyreduction, employment generation, strengthening the infrastructure, Institutional building,Human Resource development, Involvement of Panchayat raj, Nagarapalikas,N.G.OSandDecentralization and peoples participation. Energy was given prority with 26.6% of the

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