Term Paper

On
Managerial Economics
Topic : 10th & 11th Five Year Plans:- An
Analysis

Submitted To : Submitted By :
Prof. Sachin Lal Kashyap Sarang Khanwalkar
MBA I – LIM
RT1903-A06
R.N.-10905721
Introduction

For the smooth functioning of any economy, planning plays an important role. The Planning
Commission has been entrusted with the responsibility of the creation, development and
execution of India's five year plans. India's five year plans are also supervised by the Planning
commission.

In the second world war almost all the countries of the world faced a lot of destruction. They had
to face the ravage of many new problems coming out of war. So, just before the war was over,
the Government thought of post-war reconstruction in their respective countries. The British
Government of India also had such a plan for India. Moreover, India was an undeveloped
country. After the freedom, the national Government of India wanted to uplift it through proper
planning. So, the Government of India introduced five-year plans. The first five-year plan
included almost all the recommendations of the post-war reconstruction scheme. These five-year
plans are approved by the National Planning Commission.

The Planning Commission was set up in March, 1950. The draft of the first five-year plan was
published in July 1951 and it was approved in December 1951.

The economy of India is based in part on planning through its five-year plans, developed,
executed and monitored by the Planning Commission. With the Prime Minister as the ex officio
Chairman, the commission has a nominated Deputy Chairman, who has rank of a Cabinet
minister. Montek Singh Ahluwalia is currently the Deputy Chairman of the Commission. The
tenth plan completed its term in March 2007 and the eleventh plan is currently underway.

Currently, the 11th Five Year Plan, is underway. India's 10th Five Year Plan, ended its tenure in
the month of March, 2007.
The 10th Five-Year Plan :

The Tenth Five Year Plan marks the return of visionary planning to India after a long
interregnum of cautious optimism. During the past two decades, India has no doubt been one of
the ten fastest growing economies in the world, but we cannot be content with that. The Tenth
Plan aims to take the country even further ahead, potentially to become the fastest growing
country by the end of the Plan period. It calls for us to stretch beyond our immediate capabilities
and set targets which are in consonance with our needs and the evident aspirations of our people.
The 10th Five Year Plan (2002-2007) targets at a GDP growth rate of 8% per annum.

Taking note of the inabilities of the earlier Five Years Plans, especially that of the 9th Five Year
Plan, the Tenth Five Year Plan decides to take up a resolution for immediate implementation of
all the policies formulated in the past. This amounts to making appeals to the higher government
authorities, for successful completion of their campaigns associated with the rapid
implementation of all past policies.

The primary aim of the 10th Five Year Plan is to renovate the nation extensively, making it
competent enough with some of the fastest growing economies across the globe. It also intends
to initiate an economic growth of 10% on an annual basis. In fact, this decision was taken only
after the nation recorded a consistent 7% GDP growth, throughout the past decade.

The 7% growth in the Indian GDP is considered to be considerably higher that the average
growth rate of GDP in the world. This enabled the Planning Commission of India to extend the
GDP limit further and set goals, which will drive India to become one of the best industrial
countries in the world, to be clubbed and recognized with the world’s best industrialized nations.

Like all other Five Year Plans, the 10th Five Year Plan is also devised, executed and supervised
by the Planning Commission of India.

The tone was set by the Prime Minister two years ago when he asked the Planning Commission
to examine the feasibility of doubling the per capita income of the country in ten years and of
providing 100 million work opportunities over the same period. The timing was significant. The
country was already in the middle of what has proved to be an extended period of industrial
stagnation, and weather-related agricultural failure had reemerged after nine years of normal
monsoons. The international economy too was not performing well. The euphoria generated by
the 7 per cent plus growth rates of the mid-1990s had, therefore, all but evaporated, and there
was a perceptible lack of national self-confidence. In such a context, it would have been prudent
to set one’s sight relatively low and seek refuge in “ground realities” – an oft-repeated
euphemism for caution bordering on pessimism.

The Tenth Five Year Plan India (2002-2007) aims to transform the country into the fastest
growing economy of the world and targets an annual economic growth of 10%. This was decided
after India registered a 7% GDP growth consistently over the last decade.

This GDP growth of 7% is much higher than the world's average GDP growth rate. Thus, the
Planning Commission of India sought to stretch the limit and set targets which would propel
India to the super league of industrially developed countries.

The main objectives of the 10th Five-Year Plan were:

• Reduction of poverty ratio by 5 percentage points by 2007;

• Providing gainful and high-quality employment at least to the addition to the labour
force;

• All children in India in school by 2003; all children to complete 5 years of schooling by
2007;

• Reduction in gender gaps in literacy and wage rates by at least 50% by 2007;

• Reduction in the decadal rate of population growth between 2001 and 2011 to 16.2%;

• Increase in Literacy Rates to 75 per cent within the Tenth Plan period (2002 to 2007);

• Reduction of Infant mortality rate (IMR) to 45 per 1000 live births by 2007 and to 28 by
2012;
• Reduction of Maternal Mortality Ratio (MMR) to 2 per 1000 live births by 2007 and to 1
by 2012;

• Increase in forest and tree cover to 25 per cent by 2007 and 33 per cent by 2012;

• All villages to have sustained access to potable drinking water within the Plan period;

• Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012;

• Economic Growth further accelerated during this period and crosses over 8% by 2006.
Tenth Five Year Plan Targets and Achievements (2006-07)

• Establishment of Cath Lab at a cost of Rs.4.50 crores at Indira Gandhi Govt. General
Hospital & Post Graduate Institute.

• CT Scan at a cost of Rs.1.50 crores established at General Hospital, Mahe.

• Construction of Medical College at Kadirkamam under progress.

• 700 Bedded Women and Children Hospital at Ellaipillaichavadi nearing completion.

• 12 bedded Geriatric wards for the Senior Citizens have been opened in the Indira Gandhi
Govt. General Hospital & Post Graduate Institute, Puducherry.

• Computers have been purchased for establishment of Hospital Information System in

Indira Gandhi Govt. General Hospital & Post Graduate Institute, Puducherry.

• Computerization of Laboratory so as to transmit various investigation results to all

wards / Diet section in Indira Gandhi Govt. General Hospital & Post Graduate Institute,
Puducherry.

• Trauma Care facilities and Critical Care Wards has been improved by providing
infrastructure facilities at General Hospital, Mahe.

• Kidney Transplant Operations have been started at Indira Gandhi Govt. General Hospital
& Post Graduate Institute, Puducherry.

• 16 Ambulances for Puducherry region and 9 Ambulances for Karaikal region have been
purchased and provided to PHCs/CHCs, for transportation of patients from rural areas to
the General Hospitals.
The 11th Five Year Plan [2007-2012]

On the eve of the 11th Plan our economy is in a much stronger position
than it was a few years ago. After slowing down to an average growth rate of about
5.5% in the 9th Plan period (1997-98 to 2001-02), it has accelerated significantly in
recent years. The average growth rate in the last four years of 10th Plan period
(2003-04 to 2006-07) is likely to be a little over 8%, making the growth rate for the
entire 10th Plan period 7.2%. This is below the 10th Plan target of 8%, but it is the
highest growth rate achieved in any plan period.

This performance reflects the strength of our economy and the

dynamism of the private sector in many areas. Yet, it is also true that economic
growth has failed to be sufficiently inclusive, particularly after the mid-1990s.
Agriculture lost its growth momentum from that point on and subsequently entered a
near crisis situation. Jobs in the organised sector have not increased despite faster
growth. The percentage of our population below the poverty line is declining but only
at a modest pace. Malnutrition levels also appear to be declining, but the magnitude
of the problem continues to be very high. Far too many people still lack access to
basic services such as health, education, clean drinking water and sanitation
facilities without which they cannot claim their share in the benefits of growth.
Women have increased their participation in the labour force as individuals, but
continue to face discrimination and are subject to increasing violence, one stark
example of which is the declining child sex ratio.

Despite these problems, most of the ordinary people have tried to cope
with their livelihood issues. Many have participated in collective action to try to
improve their social and economic conditions. Empowerment of Panchayati Raj
Institutions (PRIs) is ongoing but much remains to be done. Civil Society
Organisations have gained strength and are trying new experiments to reach the
unreached, often in partnership with PRIs. Women are participating in PRI’s and
leading group action for a better life.
In the context of the formulation of Eleventh Five Year Plan (2007-2012), the following
sectorwise WORKING GROUPS/STEERING COMMITTEES/TASK FORCE have been set up
by Planning Commission, to make recommendations on various policy matters.

• Agriculture
• Backward Classes
• Communication & Information
• Development Policy
• Education
• Enviroment & Forests
• Financial Resources
• Health & Family Welfare
• Housing & Urban Development
• Industry & Minerals
• Labour, Employment & Power
• Multi-level Planning
• Energy Policy & Rural Energy
• Programme Evaluation Organization
• Rural Development
• Social Justice & Women Empowerment
• Science & Technology
• State Plans
• Tourism
• Transport
• Village & Small Enteprises
• Voluntary Action Cells
• Water Resources
• Women & Child Development
• International Economics
Agriculture

• Working Groups
• Horticulture, Plantation Crops and Organic Farming
• Agriculture Extension
• Agro-climatic Zonal Planning including Agricultural Development in North Eastern India
• Agricultural Marketing Infrastructure and Policy required for Internal and External Trade
• Crop Husbandry, Agricultural Inputs, Demand and Supply Projections and Agricultural
Statistics
• Natural Resource Management
• Animal Husbandary and Dairying
• Fisheries
• Agricultural Research and Education
• Risk Management in Agriculture
• Gender Issues, Panchayati Raj Institutions, Public Private Partnership, Innovative
Finance and Micro Finance in Agriculture
• Outreach of Institutional Finance & Cooperative Reforms
• Steering Committees
• Agriculture and Allied Sectors
• Sub-groups
• Gender and Agriculture
• Land Related Issues And Agriculture
• PPP, PR Institutions and NGOs in Agriculture
• Innovative and Micro finance
Backward Classes

• Working Groups
• Empowerment of Other Backward Classes
• Empowerment of Minorities
• Empowerment of Scheduled Castes (SCs)
• Reforming the Social Deviants and Caring the Other Disadvantaged
• Empowerment of Scheduled Tribes (SCs)

• Steering Committees
• Empowerment of SCs, OBCs and Minorities
• Empowerment of Scheduled Tribes (SCs)

Communication & Information

• Working Groups
• Information and Broadcasting
• Information Technology
• Post
• Telecom

• Steering Committees
• Communications and Information
Development Policy

• Working Groups
• Entitlement reform for empowering the poor: The Integrated Smart Card Report (ISC)
• Competitive Micro-Credit Market in India
• Food and Nutrition Security

• Steering Committees
• Micro Finance & Poverty Alleviation

Education

• Working Groups
• Development of Education of SC/ST/ Minorities/ Girls/and other Disadvantaged Groups
• Technical Education
• Higher Education
• Language Development and Book Promotion
• Secondary and Vocational Education
• Sports and Physical Education
• Adolescents' Development and Sports & Youth Affairs
• Basic Education and Literacy
• Art and Culture

• Steering Committees
• Secondary, Higher and Technical Education
• Youth Affairs & Sports
 • Art and Culture
• Language Development and Book Promotion

Environment & Forests

• Working Groups
• Environment and Environmental Regulatory Mechanisms for the Environment & Forests
Sector
• Forests for the Environment & Forests Sector
• Wildlife, biodiversity, traditional knowledge, and animal welfare for the Environment &
Forests Sector
• Research, education, training, capacity building and information management for the
Environment & Forests Sector
• Rivers, lakes, and aquifers for the Environment & Forests Sector

• Steering Committee
• Environment, Forests & Wildlife and Animal Welfare

• Task Force
• Task Force on Urban Environmental Issues for the Environment & Forests Sector
• Task Force on Social and Economic Aspects of Conservation and Restoration for the
Environment & Forests Sector
• Task Force on Mountain Ecosystems for the Environment & Forests Sector
• Task Force on Islands, Corals, Mangroves & Wetlands for the Environment & Forests
Sector
• Task Force on Biodiversity & Genetically Modified Organisms (GMOs) for the
Environment & Forests Sector
• Task Force on Grasslands and Deserts for the Environment & Forests Sector
 • Task Force on Governance, Transparency & Participation and Environment Impact
Assessment (EIA) for the Environment & Forests Sector
• Task force on formulating action plan for removal of Arsenic Contamination in West
Bengal

Financial Resources

• Working Groups
• The Assessment of the Centre's Financial
• State's Financial Resources
• Savings

• Steering Committees
• Financial Resource

• Sub-groups
• Setup under Working Group on Savings
• Sub-group on flow of private investment of SME and Agriculture Sector
• Sub-group on inflow of Foreign Saving
• Sub-group on Public Sector's Draft on Private Sector Saving
• Sub-group on Household Sector
• Sub-group on Private Corporate Sector Saving

• Setup under Working Group on State's Financial Resources:

• Sub-group on Tax Resources
• Sub-Group on Expenditure of States
 • Sub-group on Resources Other than tax revenues of states

Health & Family Welfare

• Working Groups
• Health Informatics including Tele-Medicine
• Public Health Services (including Water & Sanitation)
• Health on Women and Children
• Health Systems Research, Biomedical Research & Development and Regulation of Drugs
and Therapeutics
• Population stabilization
• Integrating nutrition with health
• Clinical Establishments, Professional Services Regulation and Accreditation of Health
Care Infrastructure
• Access to Health Systems including AYUSH
• Communicable & Non-Communicable Diseases
• Health Care Financing including Health Insurance
• Public Private Partnership to improve health care delivery

• Steering Committees
• Primary Health Care
• Secondary and Tertiary Health Care
• AYUSH
• Nutrition

• Task Force
 • Planning for Human Resources in the Health Sector

Housing & Urban Development

• Working Groups
• Urban Development (excluding Urban Transport), Urban Water Supply and Sanitation
(including low cost sanitation), swerage and sold waste management) and Urban
Environment
• Urban Transport including Mass Rapid Transport Systems
• Urban Housing and Urban Poverty with focus on Slums
• Housing for Police Personnel and Judicial Officers

• Steering Committees
• Urban Development, Urban Housing and Urban Poverty

Industry & Minerals

• Working Groups
• Feedstock, Fuel and Other Supply Side Constraints
• Competition Policy
• Consumer Protection
• Mineral Exploration and Development (Other than coal and lignite)
• Quality, Certification and Conformity Assessment
• Drugs and Pharmaceuticals
• Shipbuilding & Ship-repair Industry
• Chemicals and Petrochemicals
 • Textiles and Jute Industry (excluding VSE components)
• Automotive Industry
• Fertilizer Industry
• Steel Industry
• Steering Committees
• Industry

• Task Force
• Cement Industry

• Sub-Groups
• Chemicals

Labour, Employment and Manpower

• Working Groups
• Labour Force and Employment Projection
• Skill Development & Vocational Training
• Labour Laws and Other Labour Regulations
• Social Security
• Child Labour
• Occupational Safety and Health

• Steering Committees
 • Labour and Employment

• Task Force
• Skill Development

Multi Level Planning

• Task Group on Problems of Hilly Habitations in Areas Covered by the Hill Areas
Development Programme(HADP)/Western Ghats Development Programme (WGDP)
• Task Force for Preperation of a Manual for District Planning

Task Force was to look in to the Problems of Hill States and Hill Areas to suggest ways to ensure
that these States and Areas do not suffer in any way because of their peculiarities.

Power & Energy, Energy Policy and Rural Energy

• Working Groups
• Coal and Lignite
• Power
• Petroleum & Natural Gas Sector
• New and Renewable Energy
• R & D for Energy Sector
• Steering Committees
• Energy Sector

Programme Evaluation Organisation

Strengthening Monitoring and Evaluation System for the Social Sector Development Schemes in
the country during the Eleventh Five Year Plan : CONSTITUTION

Rural Development

• Working Groups
• Democratic Decentralization and Panchayati Raj Institutions
• Land Relations
• Poverty Elimination Programmes
• The Rainfed Areas
• Social Protection Policy -National Social Assistance Programme (NSAP) and Associated
Programmes
• Rural Housing

• Steering Committees
• Steering Committee on Rapid Poverty Reduction and Local Area Development

• Expert Groups
• Equitable Development
Social Justice & Women Empowerment

• Working Groups
• Empowering the Disabled

• Steering Committees
• Social Welfare and other Special Groups

Science and Technology

• Steering Committees
• Science & Technology

• Sub-Groups
• Council of Scientific and Industrial Research
• Department of Biotechnology
• Research and Development Sector
• Department of Science and Technology
 • Small Medium Scale Enterprises (SMEs)
• Ocean Development
• Mega Science Project
• Space (Indian Space Progamme)
• Attracting and Retaining Young People to careers in Science and Technology
• Cross Disciplinary Technology Area
• Leveraging International Collaboration Inputs
• Thrust Areas in Basic Sciences

• Effective Rural Technology Delivery (including Partnership with Voluntary

Organisation)
• Strengthening Academia Industry Interface (including Public Private Partnership)

State Plans

• Working Groups
• Disaster Management
• North Eastern Region

• Steering Committees
• North Eastern Region

Tourism

• Working Groups
• Tourism
 • Steering Committees
• Tourism

Transport

• Working Groups
• Railways
• Ports
• Shipping and Inland Water Transport
• Construction
• Roads
• Rural Roads
• Road Transport
• Civil Aviation

• Steering Committees
• Transport
Village & Small Enterprises

• Working Groups
• Food Processing Industries (FPI) Sector
• Village & Small Enterprises (VSE) components of Ministry of Textiles viz. Handloom,
Handicrafts, Powerloom, Sericulture & Wool
• Micro & Small Scale Enterprises and Agro & Rural Industries

• Steering Committees
• Village and Small Enterprises (VSE)
• Handicrafts Sector

Water Resources

• Working Groups
• Water Resources
 • Steering Committees
• Water Resources

Women and Child Development

• Working Groups
• Empowerment of Women
• Development of Children
• Feminist Economists

• Steering Committees
• Empowerment of Women and Development of Children
• Sub-Committee on Children

• Task Force
• Task Force to study the problems of childhood malnutrition

International Economics
 Challenges and Opportunities of Globalization

References

http://www.planningcommission.nic.in