FIVE YEAR PLANS OF INDIA

History
The Planning Commission was set up in March 1950. The main objective of the Government to promote a rapi rise in the stan ar of living of the people b!
efficient e"ploitation of the resources of the countr! increasing pro uction an offering opportunities to all for emplo!ment in the service of the communit!

The Planning Commission was charge with the responsibilit! of ma#ing assessment of all resources of the countr!$ augmenting eficient resources$ formulating plans for the most effective an balance utilisation of resources an etermining priorities. %awaharlal &ehru was the first Chairman of the Planning Commission.

Functions of the Planning Co

ission of In!ia

To ma#e an assessment of the resources of the countr! an to see which resources are eficient. To formulate plans for the most effective an utili'ation of countr!(s resources. balance

To in icate the factors which are hampering economic evelopment. To etermine the machiner!$ that woul be necessar! for the successful implementation of each stage of plan. Perio ical assessment of the progress of the plan.
Cont!"

Functions of the Planning Co

ission of In!ia

The commission is seeing to ma"imi'e the output with minimum resources with the changing times. The Planning Commission has set the goal constructing a long term strategic vision for the future. of

)t sets sectoral targets an provi es the catal!st to the econom! to grow in the right irection. The Planning Commission pla!s an integrative role in the evelopment of a holistic approach to the formulation of policies in critical areas of human an economic evelopment.

Plan
First Plan (1951 56) Second Plan (1956 61) Third Plan (1961 66) Plan Holida Fo!rth Plan (1969 19"4) Fi#th Plan (19"4 "9) Si$th Plan (198% 85) Se&enth Plan (1985 9%) 'i(hth Plan (1992 9") )inth Plan (199" 2%%2) Tenth Plan (2%%2 2%%")

#arge Actua t l
2.9% 4.5% 5.6% 5."% 4.4% 5.2% 5.%% 5.6% 6.5% 8.%% 3.6% 4.3% 2.8% 3.3% 4.8% 6.%% 6.%% 6.8% 5.4% **

First Fi$e%Year Plan &'()'*'()+,

The first )n ian Prime Minister$ %awaharlal &ehru presente the first five*!ear plan to the Parliament of )n ia on +ecember ,$ 1951. This plan was base on the -arro *+omar mo el. The plan a resse $ mainl!$ the agrarian sector$ inclu ing investments in ams an irrigation. The total planne bu get of .s./009 crore was allocate to seven broa areas
irrigation an energ! 1/2./ percent3 agriculture an communit! evelopment 112.4 percent3 transport an communications 1/4 percent3 in ustr! 1,.4 percent3 social services 110.04 percent3 lan rehabilitation 14.1 percent3$ an for other sectors an services 1/.5 percent3.

First Fi$e%Year Plan &'()'*'()+,

The net omestic pro uct went up b! 155. The monsoon was goo an there were relativel! high crop !iel s$ boosting e"change reserves an the per capita income$ which increase b! ,5. &ational income increase more than the per capita income ue to rapi population growth. Man! irrigation projects were initiate uring this perio $ inclu ing the 6ha#ra +am an -ira#u +am. The 7orl -ealth 8rgani'ation$ with the )n ian government$ a resse chil ren(s health an re uce infant mortalit!$ in irectl! contributing to population growth.

Secon! Fi$e%Year Plan &'()+*'(+',

The secon five*!ear plan focuse on in ustr!$ especiall! heav! in ustr!. The 9econ plan$ particularl! in the evelopment of the public sector. The plan followe the Mahalanobis mo el$ an economic evelopment mo el evelope b! the )n ian statistician Prasanta Chan ra Mahalanobis in 195:. The plan attempte to etermine the optimal allocation of investment between pro uctive sectors in or er to ma"imise long*run economic growth. The plan assume a close econom! in which the main tra ing activit! woul be centere on importing capital goo s.

Allocation
The total amount allocate un er the secon five !ear plan in )n ia was .s.4$000 crore. This amount was allocate among various sectors;
Power an irrigation 9ocial services Communications an transport Miscellaneous

#hir! Fi$e%Year Plan &'(+'*'(++,

The thir plan stresse on agriculture an improvement in the pro uction of wheat$ but the brief 9ino*)n ian 7ar of 190/ e"pose wea#nesses in the econom! an shifte the focus towar s the +efence in ustr!. Man! cement an fertili'er plants were also built. Punjab began pro ucing an abun ance of wheat. Man! primar! schools have been starte in rural areas.

Plan Holi!ay &'(++%+(,

)n 1905<1900$ )n ia fought a =)n o*Pa#> 7ar with Pa#istan. +ue to this war$ there was a severe rought in 1905. The war le to inflation an the priorit! was shifte to price stabilisation. The construction of ams continue .

Fourth Fi$e%Year Plan &'(+(*'(-.,

?t this time )n ira Gan hi was the Prime Minister. The government nationalise 14 major )n ian ban#s an the Green .evolution in )n ia a vance agriculture. Main emphasis was on growth rate of agriculture to enable other sectors to move forwar . @irst two !ears of the plan saw recor pro uction. The last three !ears i not measure up ue to poor monsoon. )nflu" of 6angla eshi refugees before an after 1921 )n o*Pa# war was an important issue.

Fifth Fi$e%Year Plan &'(-.%-(,

The fifth plan was prepare an launche b! +.+. +har. )t propose to achieve two main objectives;
removal of povert! 1Garibi -atao3 an attainment of self reliance

Promotion of high rate of growth$ better istribution of income an significant growth in the omestic rate of savings were seen as #e! instruments The plan was terminate in 192, 1instea Part! Govt. rose to power. Rolling Plan &'(-/ % /0,
There were / 9i"th Plans. %anta Govt. put forwar a plan for 192,*19,:. -owever$ the government laste for onl! / !ears. Congress Govt. returne to power in 19,0 an launche a ifferent plan.

of 19293 when %anta

Si1th Fi$e%Year Plan &'(/0 * /),

@ocus < )ncrease in
national income$ mo erni'ation of technolog!$ ensuring continuous unemplo!ment$ ecrease in povert! an

population control through famil! planning$ etc.

Se$enth Fi$e%Year Plan &'(/) % (0,

@ocus < rapi growth in foo *grains pro uction$ increase emplo!ment opportunities an pro uctivit! within the framewor# of basic tenants of planning. The plan was ver! successful$ the econom! recor e 05 growth rate against the targete 55.

Eighth Fi$e%Year Plan &'((2 % (-,

The eighth plan was postpone b! two !ears because of political uncertaint! at the Centre 7orsening 6alance of Pa!ment position an inflation uring 1990*91. The plan un ertoo# rastic polic! measures to combat the ba economic situation an to un erta#e an annual average growth of 5.05. 9ome of the main economic outcomes uring eighth plan perio were rapi economic growth$ high growth of agriculture an allie sector$ an manufacturing sector$ growth in e"ports an imports$ improvement in tra e an current account eficit.

Ninth Fi$e Year Plan &'((-% 2002,

)t was evelope in the conte"t of four important imensions;

Aualit! of life generation of pro uctive emplo!ment regional balance an self*reliance

O34ecti$es of the Ninth Fi$e Year Plan

to prioriti'e agricultural sector an emphasi'e on the rural evelopment to generate a eBuate emplo!ment opportunities an re uction to ensure foo an nutritional securit!. to provi e for the basic infrastructural facilities li#e e ucation for all$ safe rin#ing water$ primar! health care$ transport$ energ! to chec# the growing population increase to encourage social issues li#e women empowerment$ conservation of certain benefits for the 9pecial Groups of the societ! to create a liberal mar#et for increase in private investments promote povert!

to stabili'e the prices in or er to accelerate the growth rate of the econom!

#enth Fi$e Year Plan &2002 % 200-,

?ttain ,5 G+P growth per !ear. ?chieve 2.25 .e uction of povert! ratio b! 5 percentage points b! /002. gainful an Provi ing emplo!ment at least to the a labour force. high*Bualit! ition to the

.e uction in gen er gaps in literac! an wage rates b! at least 505 b! /002.

Ele$enth Fi$e Year Plan &200- % 20'2,

?ccelerate G+P growth from ,5 to 105. )ncrease agricultural G+P growth rate to 45 per !ear. Create 20 million new wor# unemplo!ment to below 55. opportunities an re uce e ucate

.aise real wage rate of uns#ille wor#ers b! /0 percent. .e uce ropout rates of chil ren from elementar! school from 5/./5 in /00:*04 to /05 b! /011*1/. )ncrease literac! rate for persons of age 2 !ears or above to ,55. .aise the se" ratio for age group 0*0 to 9:5 b! /011*1/ an to 950 b! /010* 12. Cnsure that at least :: per cent of the irect an in irect beneficiaries of all government schemes are women an girl chil ren. Connect ever! village b! telephone b! &ovember /002 an broa ban connectivit! to all villages b! /01/. )ncrease forest an tree cover b! 5 percentage points. provi e

5uestions