Evolution of Planning in India and the Role of Planning in new millennium

Source - Wikipedia & Planning Commission Website

Topic Name 1. Evolution of Planning in India 2. Introduction Five3. First Five-Year Plan, 1951 1956 4. Second Five-Year Plan, 1956 1961 Five5. Third Five-Year Plan, 1961 1966 Five6. Gadgil Formula 7. Fourth Five-Year Plan, 1969 1974 Five8. Fifth Five-Year Plan, 1974 1979 FiveFive9. Sixth Five-Year Plan, 1980 1985 10. Seventh Five-Year Plan, 1985 1990 Five11. Period between 1989 1991 Five12. Eighth Five-Year Plan, 1992 1997 13. Ninth Five Year Plan, 1997 2002 14. Tenth Five-Year Plan, 2002 2007 FiveFive15. Eleventh Five-Year Plan, 2007 2012 16. Role of Planning in new millennium Vision 2020
2/12/2011 Srinivas Biranthbail

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Evolution of Planning in India
An Overview.

have the right to an adequate means of livelihood . 1950 by a Resolution of the Government of India which defined the scope of its work in the following terms : ‡ That the citizens. men and women equally. ‡ That the ownership and control of the material resources of the community are so distributed as best to subserve the common good . 2/12/2011 Srinivas Biranthbail 4 . and ‡ That the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment.Introduction ‡ The Planning Commission was set up in March.

mainly. India was facing basic problems likedeficiency of capital and low capacity to save. Such a role was justified at that time because immediately after independence. Jawaharlal Nehru presented the first five-year plan to the Parliament of India on 8 December 1951. the agrarian sector. ‡ The most important feature of this phase was active role of state in all economic sectors. The plan addressed. 1951 1956 Five‡ The first Indian Prime Minister. including investments in dams and irrigation. 2/12/2011 Srinivas Biranthbail 5 .First Five-Year Plan.

2/12/2011 Srinivas Biranthbail 6 . University Grant Commission was set up to take care of funding and take measures to strengthen the higher education in the country.First Five-Year Plan.1 percent annual gross domestic product (GDP) growth. ‡ At the end of the plan period in 1956. the achieved growth rate was 3.6 percent. 1951 1956 Five‡ The target growth rate was 2. five Indian Institutes of Technology (IITs) were started as major technical institutions.

especially heavy industry. which focused mainly on agriculture. The plan followed the Mahalanobis model. 1956 1961 Five‡ The second five-year plan focused on industry. 2/12/2011 Srinivas Biranthbail 7 . an economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953. domestic production of industrial products was encouraged in the Second plan. Unlike the First plan.Second Five-Year Plan. particularly in the development of the public sector.

This amount was allocated among various sectors: ‡ Mining and industry ‡ Community and agriculture development ‡ Power and irrigation ‡ Social services ‡ Communications and transport ‡ Miscellaneous 2/12/2011 Srinivas Biranthbail 8 . 4.800 crore. 1956 1961 Five‡ The total amount allocated under the second five year plan in India was Rs.Second Five-Year Plan.

The war led to inflation and the priority was shifted to price stabilization. but the brief Sino-Indian War of 1962 exposed weaknesses in the economy and shifted the focus towards the Defense industry. The construction of dams continued. Panchayat elections were started and the states were given more development responsibilities. 2/12/2011 Srinivas Biranthbail 9 . ‡ Many primary schools were started in rural areas. In an effort to bring democracy to the grassroots level. In 1965-1966. 1961 1966 Five‡ The third plan stressed on agriculture and improving production of rice.Third Five-Year Plan. India fought a war with Pakistan.

States were made responsible for secondary and higher education.3 percent. The achieved growth rate was 4. State road transportation corporations were formed and local road building became a state responsibility. 2/12/2011 Srinivas Biranthbail 10 .5 percent.Third Five-Year Plan. 1961 1966 Five‡ State electricity boards and state secondary education boards were formed. The target growth rate of GDP(gross domestic product)was 4.

2/12/2011 Srinivas Biranthbail 11 . the allocation of state resources was based on schematic patterns rather than a transparent and objective mechanism. ‡ According to this formula. 10 per cent of tax effort. which lead to the adoption of the Gadgil formula in 1969. 10 per cent of on-going irrigation and power projects and the remaining 10 per cent of special problems.Gadgil Formula ‡ Prior to the Fourth plan. 10 per cent of per capita income. allocation for states was based on 60 per cent of population.

1969 1974 Five‡ At this time Indira Gandhi was the Prime Minister. the situation in East Pakistan (now Bangladesh) was becoming dire as the Indo-Pakistani War of 1971 and Bangladesh Liberation War took place. The Indira Gandhi government nationalized 14 major Indian banks and the Green Revolution in India advanced agriculture. 2/12/2011 Srinivas Biranthbail 12 . In addition. ‡ Funds earmarked for the industrial development had to be diverted for the war effort.Fourth Five-Year Plan.

poverty alleviation.Fifth Five-Year Plan. which enabled the Central Government to enter into power generation and transmission. 1974 1979 Five‡ Stress was laid on employment. In 1978 the newly elected Morarji Desai government rejected the plan. The plan also focused on self-reliance in agricultural production and defence. ‡ The Indian national highway system was introduced for the first time and many roads were widened to accommodate the increasing traffic. and justice. 2/12/2011 Srinivas Biranthbail 13 . Tourism also expanded. Electricity Supply Act was enacted in 1975.

This led to an increase in food prices and an increase in the cost of living. This was the end of Nehruvian Plan. Rajiv Gandhi was prime minister during this period. 1980 1985 Five‡ The sixth plan marked the beginning of economic liberalization. Price controls were eliminated and ration shops were closed. 2/12/2011 Srinivas Biranthbail 14 . ‡ Family planning was also expanded in order to prevent overpopulation.Sixth Five-Year Plan. More prosperous areas of India adopted family planning more rapidly than less prosperous areas. which continued to have a high birth rate.

‡ The main objectives of the 7th five year plans were to establish growth in areas of increasing economic productivity. 1985 1990 Five‡ The Seventh Plan marked the comeback of the Congress Party to power. production of food grains. 2/12/2011 Srinivas Biranthbail 15 . and generating employment opportunities.Seventh Five-Year Plan. The plan laid stress on improving the productivity level of industries by upgrading of technology.

control on rate of Inflation. The 7th Plan had strived towards socialism and energy production at large. 1985 1990 Five‡ As an outcome of the sixth five year plan. and favorable balance of payments which had provided a strong base for the seventh five Year plan to build on the need for further economic growth.Seventh Five-Year Plan. there had been steady growth in agriculture. 2/12/2011 Srinivas Biranthbail 16 .

left with reserves of only about US$1 billion. India faced a crisis in Foreign Exchange (Forex) reserves. the country took the risk of reforming the socialist economy. under pressure. ‡ Thus. 2/12/2011 Srinivas Biranthbail 17 . In 1991.Period between 1989 1991 ‡ 1989-91 was a period of political instability in India and hence no five year plan was implemented. Between 1990 and 1992. there were only Annual Plans.

V. Narasimha Rao was the twelfth Prime Minister of the Republic of India and head of Congress Party. At that time Dr. It was the beginning of privatisation and liberalization in India. Prime Minister of India) launched India's free market reforms that brought the nearly bankrupt nation back from the edge. Manmohan Singh (currently. and led one of the most important administrations in India's modern history overseeing a major economic transformation and several incidents affecting national security.Period between 1989 1991 ‡ P. 2/12/2011 Srinivas Biranthbail 18 .

Meanwhile India became a member of the World Trade Organization on 1 January 1995.Eighth Five-Year Plan. 1992 1997 Five‡ Modernization of industries was a major highlight of the Eighth Plan. ‡ This plan can be termed as Rao and Manmohan model of Economic development. 2/12/2011 Srinivas Biranthbail 19 . the gradual opening of the Indian economy was undertaken to correct the burgeoning deficit and foreign debt. Under this plan.

G.tourism management. Nagarapalikas. Involvement of Panchayat raj.Eighth Five-Year Plan. Energy was given priority with 26. strengthening the infrastructure. containing population growth. N. poverty reduction. employment generation. 2/12/2011 Srinivas Biranthbail 20 . 1992 1997 Five‡ The major objectives included.O'S and Decentralisation and people's participation. Human Resource development. Institutional building. An average annual growth rate of 6.7% against the target 5.6% was achieved.6% of the outlay.

poverty reduction. 2/12/2011 Srinivas Biranthbail 21 . human development. and self-reliance on domestic resources. 1997 2002 ‡ Ninth Five Year Plan India runs through the period from 1997 to 2002 with the main aim of attaining objectives like speedy industrialization. full-scale employment.Ninth Five Year Plan. ‡ Background of Ninth Five Year Plan India: Ninth Five Year Plan was formulated amidst the backdrop of India's Golden jubilee of Independence.

check the growing population increase. stabilize the prices in order to accelerate the growth rate of the economy. emphasize on rural development. 1997 2002 ‡ The main objectives of the Ninth Five Year Plan of India are: ‡ To prioritize agricultural sector. generate adequate employment opportunities and promote poverty reduction.Ninth Five Year Plan.5 per cent. 2/12/2011 Srinivas Biranthbail 22 . ‡ During the Ninth Plan period.35 per cent. encourage social issues like women empowerment. the growth rate was 5. a percentage point lower than the target GDP growth of 6.

7. 2002 2007 Five‡ Attain 8% GDP growth per year. All children in India in school by 2003.Tenth Five-Year Plan.7% was achieved. ‡ 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%. ‡ Providing gainful and high-quality employment at least to the addition to the labor force. ‡ Reduction of poverty ratio by 5 percentage points by 2007. Increase in Literacy Rates to 75 per cent within the Tenth Plan period (2002 to 2007). 2/12/2011 Srinivas Biranthbail 23 . all children to complete 5 years of schooling by 2007.

2007 2012 Five‡ Accelerate GDP growth from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016-17.Eleventh Five-Year Plan. ‡ Increase agricultural GDP growth rate to 4% per year to ensure a broader spread of benefits.2% in 2003-04 to 20% by 2011-12 ‡ Increase literacy rate for persons of age 7 years or above to 85% 2/12/2011 Srinivas Biranthbail 24 . ‡ Reduce dropout rates of children from elementary school from 52.

‡ Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are women and girl children 2/12/2011 Srinivas Biranthbail 25 .Eleventh Five-Year Plan. 2007 2012 Five‡ Reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000 live births ‡ Reduce anaemia among women and girls by 50% by the end of the plan ‡ Raise the sex ratio of women for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17 for every 1000 men.

‡ Attain WHO standards of air quality in all major cities by 2011-12.Eleventh Five-Year Plan. 2007 2012 Five‡ Ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power. ‡ Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012. 2/12/2011 Srinivas Biranthbail 26 . ‡ Increase forest and tree cover by 5 percentage points.

Role of Planning in new millennium Vision 2020 .

yet it must rise beyond the limitations of past trends.Vision 2020 ‡ It must encompass all the myriad aspects that constitute the life of the country and its people. immediate preoccupations and pressing challenges 2/12/2011 Srinivas Biranthbail 28 . ‡ It must balance and synthesize all the divergent views and forces that compete in the pursuit of selffulfillment ‡ It must be based on an objective assessment of facts and a realistic appraisal of possibilities.

‡ Should serve to awaken in all of us a greater awareness of our cultural and spiritual strengths which formed the bedrock of our past achievements and should form the foundation of our future accomplishments. is our greatest endowment. but knowledge. ‡ Some of our traditions must change.Vision 2020 ‡ To perceive the emerging opportunities and concealed potentials. in essence. 2/12/2011 Srinivas Biranthbail 29 .

a complete reliance on our own capacity as a nation and an unshakeable determination to realize our full potential.Vision 2020 ‡ The vision should awaken in us an unswerving confidence in ourselves. It must emerge as a living and dynamic reality in the minds and hearts of the people and their leaders. 2/12/2011 Srinivas Biranthbail 30 . ‡ A true vision cannot be a static written statement.

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