Five-Year plans of India

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(October 2007)
Indian economy is based on the concept of planning. This is carried through her 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 eleventh plan completed its term in March 2012 and the twelfth plan is
currently underway.
[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 of 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]

Contents
[hide]
 1 History
 2 Second Plan (1956-1961)
 3 Third Plan (1961–1966)
 4 Fourth Plan (1969–1974)
 5 Fifth Plan (1974–1979)
 6 Sixth Plan (1980–1985)
 7 Seventh Plan (1985–1990)
 8 Eighth Plan (1992–1997)
 9 Ninth Plan (1998 - 2002)
 10 Tenth Plan (2002–2007)
 11 Eleventh Five Year Plan (2007-2012)
 12 Twelfth Plan (2012–2017)
 13 See also
 14 References
 15 External links
History[edit]
Five-Year Plans (FYPs) are centralized and integrated national economic programs. Joseph
Stalin implemented the first FYP in the Soviet Union in the late 1920s. Most communist
states and several capitalist countries subsequently have adopted them. China and India both
continue to use FYPs, although China renamed its Eleventh FYP, from 2006 to 2010, a
guideline (guihua), rather than a plan (jihua), to signify the central government’s more hands-
off approach to development. India launched its First FYP in 1951, immediately after
independence under socialist influence of first Prime Minister Jawaharlal Nehru.
[3]

The first Five-Year Plan was one of the most important because it has a great role in the
launching of Indian development after the Independence. Thus, it strongly supported
agriculture production and it also launched the industrialization of the country (but less than
the Second Plan, which focused on heavy industries). It built a particular system of "Mixed
economy", with a great role for the public sector (with an emerging Welfare State), as well as
a growing private sector (represented by some personalities as those who published the
Bombay Plan).
==no planingzz..!!
(1951-1956)==
The first Five-year Plan Sought to get country out of the poverty cycle. K.N Raj a young
economist involved in drafting the plan, argued that India Should "hasten slowly" for first
two decades as a fast rate of development might endanger democracy. (source: Gunika
Duggal)
The first Indian Prime Minister, Jawaharlal Nehru presented the first five-year plan to the
Parliament of India and needed urgent attention.
[4]
The total planned budget of 20.69 billion
was allocated to seven broad areas: irrigation and energy (27.2 percent), agriculture and
community development (17.4 percent), transport and communications (24 percent), industry
(8.4 percent), social services (16.64 percent), land rehabilitation (4.1 percent), and for other
sectors and services (2.5 percent).
[5]
The most important feature of this phase was active role
of state in all economic sectors. Such a role was justified at that time because immediately
after independence, India was facing basic problems—deficiency of capital and low capacity
to save.
The target growth rate was 2.1% annual gross domestic product (GDP) growth; the achieved
growth rate was 3.6%
[6]
The net domestic product went up by 15%. The monsoon was good
and there were relatively high crop yields, boosting exchange reserves and the per capita
income, which increased by 8%. National income increased more than the per capita income
due to rapid population growth. Many irrigation projects were initiated during this period,
including the Bhakra Dam and Hirakud Dam. The World Health Organization, with the
Indian government, addressed children's health and reduced infant mortality, indirectly
contributing to population growth.
At the end of the plan period in 1956, five Indian Institutes of Technology (IITs) were started
as major technical institutions. The University Grant Commission was set up to take care of
funding and take measures to strengthen the higher education in the country.
[7]
Contracts
were signed to start five steel plants, which came into existence in the middle of the second
five-year plan.
More generally, the first Five-year plan included: Industrial sector, Energy and Irrigation,
Transport and Communications, Land rehabilitation, Social services, Developments of
agriculture and community, Miscellaneous issues in India.
The target set for the growth in the gross domestic product was 2.1 percent every year. In
reality, the actual achieved with regard to gross domestic product was 3.6% per year.
[6]
This
is a clear indication of the success of the first Five-year Plan.
Some important events that took place during the tenure of the 1st five-year plan: The
following Irrigation projects were started during that period: Metttur Dam, Hirakud Dam,
Bhakra Dam.
The government had taken steps to rehabilitate the landless workers, whose main occupation
was agriculture. These workers were also granted fund for experimenting and undergoing
training in agricultural know how in various cooperative institutions. Soil conservation, was
also given considerable importance. The Indian government also made considerable effort in
improving posts and telegraphs, railway services, road tracks, civil aviation. Sufficient fund
was also allocated for the industrial sector. In addition measures were taken for the growth of
the small scale industries.
1st three plans (1951-1965) had industrial growth of 8% sturdy growth. The Atomic Energy
Commission was formed in 1948 with Homi J. Bhabha as the first chairman till 1966. India
started family planning in 1952.
Second Plan (1956-1961)[edit]
The second plan, particularly in the development of the public sector. The plan followed the
Mahalanobis model, an economic development model developed by the Indian statistician
Prasanta Chandra Mahalanobis in 1953. The plan attempted to determine the optimal
allocation of investment between productive sectors in order to maximise long-run economic
growth. It used the prevalent state of art techniques of operations research and optimization
as well as the novel applications of statistical models developed at the Indian Statistical
Institute. The plan assumed a closed economy in which the main trading activity would be
centered on importing capital goods.
[8][9]

Hydroelectric power projects and five steel mills at Bhilai, Durgapur, and Rourkela were
established. Coal production was increased. More railway lines were added in the north east.
The Tata Institute of Fundamental Research was established as a research institute. In 1957 a
talent search and scholarship program was begun to find talented young students to train for
work in nuclear power.
The total amount allocated under the second five-year plan in India was Rs.48 billion. This
amount was allocated among various sectors: Power and irrigation, Social services,
Communications and transport, Miscellaneous.
The target growth rate was 4.5% and the actual growth rate was 4.27%.
[6]
1956-industrial
policy
Third Plan (1961–1966)[edit]
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 defence 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 stabilisation. The construction of dams continued. Many cement
and fertilizer plants were also built. Punjab began producing an abundance of wheat.
Many primary schools were started in rural areas. In an effort to bring democracy to the
grass-root level, Panchayat elections were started and the states were given more
development responsibilities.
State electricity boards and state secondary education boards were formed. States were made
responsible for secondary and higher education. State road transportation corporations were
formed and local road building became a state responsibility.
The target growth rate was 5.6%, but the actual growth rate was 2.4%.
[6]

Due to miserable failure of third plan the government was forced to declare "plan holidays"
(from 1966–67,1968–69). Three annual plans were drawn during this intervening period
.During 1966-67 there was again the problem of drought. Equal priority was given to
agriculture, its allied activities, and industrial sector. The main reasons for plan holidays were
the war, lack of resources, and increase in inflation.
Fourth Plan (1969–1974)[edit]
At this time Indira Gandhi was the Prime Minister. The Indira Gandhi government
nationalised 14 major Indian banks and the Green Revolution in India advanced agriculture.
In addition, the situation in East Pakistan (now Bangladesh) was becoming dire as the Indo-
Pakistan War of 1971 and Bangladesh Liberation War took funds earmarked for industrial
development had to be diverted for the war effort. India also performed the Smiling Buddha
underground nuclear test in 1974, partially in response to the United States deployment of the
Seventh Fleet in the Bay of Bengal. The fleet had been deployed to warn India against
attacking West Pakistan and extending the war.
The target growth rate was 5.6%, but the actual growth rate was 3.3%.
[6]

Fifth Plan (1974–1979)[edit]
The fifth Five-year Plan laid stress on employment, poverty alleviation (Garabi Hatao), and
justice. The plan also focused onself-reliance in agricultural production and defence. In 1978
the newly elected Morarji Desai government rejected the plan. The Electricity Supply Act
was amended in 1975, which enabled the central government to enter into power generation
and transmission.
[10][citation needed]

The Indian national highway system was introduced and many roads were widened to
accommodate the increasing traffic. Tourism also expanded.
The target growth rate was 4.4% and the actual growth rate was 5.0.
[6]

Sixth Plan (1980–1985)[edit]
The sixth Five-year Plan marked the beginning of economic liberalisation. 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.
Family planning was also expanded in order to prevent overpopulation. In contrast to China's
strict and binding one-child policy, Indian policy did not rely on the threat of force
[citation
needed]
. More prosperous areas of India adopted family planning more rapidly than less
prosperous areas, which continued to have a high birth rate. The sixth Five-year Plan was a
great success to Indian economy.
The target growth rate was 5.2% and the actual growth rate was 5.4%.
[6]

Seventh Plan (1985–1990)[edit]
The seventh Five-year Plan marked the comeback of the Congress Party to power. The plan
laid stress on improving the productivity level of industries by upgrading of technology.
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.
target growth of 8 %
As an outcome of the sixth Five-year Plan, there had been steady growth in agriculture,
controls on the rate of inflation, and favourable balance of payments which had provided a
strong base for the seventh Five-year Plan to build on the need for further economic growth.
The seventh plan had strived towards socialism and energy production at large. The thrust
areas of the seventh Five-year Plan were: Social Justice, Removal of oppression of the weak,
Using modern technology, Agricultural development, Anti-poverty programs, Full supply of
food, clothing, and shelter, Increasing productivity of small- and large-scale farmers, and
Making India an Independent Economy.
Based on a 15-year period of striving towards steady growth, the seventh plan was focused on
achieving the pre-requisites of self-sustaining growth by the year 2000. The plan expected a
growth in labour force by 39 million people and employment was expected to grow at the rate
of 4% per year. Some of the expected outcomes of the Seventh Five Year Plan India are
given below:
 Balance of Payments (estimates): Export – 330 billion (US$5.0 billion), Imports – (-
) 540 billion (US$8.3 billion), Trade Balance – (-) 210 billion (US$3.2 billion)
 Merchandise exports (estimates): 606.53 billion (US$9.3 billion)
 Merchandise imports (estimates): 954.37 billion (US$14.6 billion)
 Projections for Balance of Payments: Export – 607 billion (US$9.3 billion), Imports
– (-) 954 billion (US$14.6 billion), Trade Balance- (-) 347 billion (US$5.3 billion)
Under the seventh Five-year Plan, India strove to bring about a self-sustained economy in the
country with valuable contributions from voluntary agencies and the general populace.
The target growth rate was 5.0% and the actual growth rate was 6.01%.
[11]

Eighth Plan (1992–1997)[edit]
1989–91 was a period of economic instability in India and hence no five-year plan was
implemented. Between 1990 and 1992, there were only Annual Plans. In 1991, India faced a
crisis in Foreign Exchange (Forex) reserves, left with reserves of only about US$1 billion.
Thus, under pressure, the country took the risk of reforming the socialist economy. P.V.
Narasimha Rao was the ninth Prime Minister of the Republic of India and head of Congress
Party, and led one of the most important administrations in India's modern history overseeing
a major economic transformation and several incidents affecting 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
privatisation and liberalisation in India.
Modernization of industries was a major highlight of the Eighth Plan. Under this plan, the
gradual opening of the Indian economy was undertaken to correct the burgeoning deficit and
foreign debt. Meanwhile India became a member of the World Trade Organization on 1
January 1995.This plan can be termed as Rao and Manmohan model of Economic
development. The major objectives included, controlling population growth, poverty
reduction, employment generation, strengthening the infrastructure, Institutional building,
tourism management, Human Resource development, Involvement of Panchayat raj, Nagar
Palikas, N.G.O'S and Decentralisation and people's participation. Energy was given priority
with 26.6% of the outlay. An average annual growth rate of 6.78% against the target 5.6%
[6]

was achieved.
To achieve the target of an average of 5.6% per annum, investment of 23.2% of the gross
domestic product was required. The incremental capital ratio is 4.1.The saving for investment
was to come from domestic sources and foreign sources, with the rate of domestic saving at
21.6% of gross domestic production and of foreign saving at 1.6% of gross domestic
production.
[12]

Ninth Plan (1998 - 2002)[edit]
The Ninth Five Year Plan came after 50 years of completion of Indian Independence. Atal
Bihari Vajpayee was the Prime Minister of India during the Ninth Five Year Plan. The Ninth
Five Year Plan tried primarily to use the latent and unexplored economic potential of the
country to promote economic and social growth. The Ninth Five Year Plan offered strong
support to the social spheres of the country in an effort to achieve complete elimination of
poverty. The satisfactory implementation of the Eighth Five Year Plan also ensured in the
States ability to proceed on the path of faster development. The Ninth Five Year Plan also
saw joint efforts from the public and the private sectors in ensuring economic development of
the country. In addition, the Ninth Five Year Plan saw contributions towards development
from the general public as well as Governmental agencies in both the rural and urban areas of
the country. New implementation measures in the form of Special Action Plans (SAPs) were
evolved during the Ninth Five Year Plan to fulfill targets within the stipulated time with
adequate resources. The SAPs covered the areas of social infrastructure, agriculture,
information technology and Water policy.
Budget
The Ninth Five Year Plan had a total Public Sector Plan outlay of ₹ 8,59,200 crores. The
Ninth Five Year Plan also saw a hike of 48% in terms of plan expenditure and 33% in terms
of the plan outlay in comparison to that of the Eighth Five Year Plan. In the total outlay, the
share of the Centre was approximately 57% while it was 43% for the States and the Union
Territories.

The Ninth Five Year Plan focused the relationship between the rapid economic growth and
the quality of life for the people of the country. The prime focus of the Ninth Five Year Plan
was to increase growth in the country with an emphasis on social justice and equity. The
Ninth Five Year Plan paid considerable importance on combining growth oriented policies
with the mission of achieving the desired objective of improving policies which would work
towards the improvement of the poor in the country. The Ninth Five Year Plan also aimed at
correcting the historical inequalities which were still prevalent in the society.
Objectives
The main objective of the Ninth Five Year Plan was to correct historical inequalities and
increase the economic growth in the country. Other aspects which constituted the Ninth Five
Year Plan were as follows:
1. Population control.
2. Generating employment by giving priority to agriculture and rural development.
3. Reduction of poverty.
4. Ensuring proper availability of food and water for the poor.
5. Availability of primary health care facilities and other basic necessities.
6. Primary education to all children in the country.
7. Empowering the socially disadvantaged classes like Scheduled castes, Scheduled tribes
and other backward classes.
8. Developing self-reliance in terms of agriculture.
9. Acceleration in the growth rate of the economy with the help of stable prices.
Strategies
• Structural transformations and developments in the Indian economy.
• New initiatives and initiation of corrective steps to meet the challenges in the economy of
the country.
• Efficient use of scarce resources to ensure rapid growth.
• Combination of public and private support to increase employment.
• Enhancing high rates of export to achieve self-reliance.
• Providing services like electricity, telecommunication, railways etc.
• Special plans to empower the socially disadvantaged classes of the country.
• Involvement and participation of Panchayati Raj institutions/bodies and Nagar Palikas in
the development process.
Performance
• The Ninth Five Year Plan achieved a Gross Domestic Product (GDP) growth rate of 5.4%
against a target of 6.5%
• The agriculture industry grew at a rate of 2.1% against the target of 4.2%
• The industrial growth in the country was 4.5% which was higher than that of the target of
3%
• The service industry had a growth rate of 7.8%.
• An average annual growth rate of 6.7% was reached.
The Ninth Five Year Plan India looks through the past weaknesses in order to frame the new
measures for the overall socio-economic development of the country. However, for a well-
planned economy of any country, there should be a combined participation of the
governmental agencies along with the general population of that nation. A combined effort of
public, private, and all levels of government is essential for ensuring the growth of India's
economy. The target growth was 7.1% and the actual growth was 6.8%.
Tenth Plan (2002–2007)[edit]
The main objectives of the tenth Five Year Plan of India were:
 Attain 8% GDP growth per year.
 Reduction of poverty rate by 5 percentage points by 2007.
 Providing gainful and high-quality employment at least to the addition to the labor
force.
 Reduction in gender gaps in literacy and wage rates by at least 50% by 2007.
 20-point program was introduced.
Target growth:8.1% Growth achieved:7.7%
 Expenditure of ₹43825 crores for 10th five year plans
Eleventh Five Year Plan (2007-2012)[edit]
The overall and comprehensive picture of the growth and plan performance during the 11th
Five Year Plan (2007 - 2012) and performance of various Flagship programmes being
implemented in the state are presented below.
1. Economic Growth
The state economy, as measured by growth in the real Gross State Domestic Product (GSDP),
on an average is expected to grow at 8.33% during the 11th Five Year Plan period (2007-12)
- even surpassing the All India's GDP growth of 7.94% for the same period. Interestingly, the
State economy grew faster than All-India during the 9th, 10th and 11th Five Year Plans in
which the state registered average annual growth rates of 5.59% (5.52%), 8.19%(7.68%) and
8.33% (7.94%) respectively where the growth rates indicated in brackets pertain to All-India.
The State had set for itself a growth target of 9.5% for the 11th Five Year Plan as against 9%
for the Nation. Although there is some shortfall in the overall achievement as compared to the
target both at the State level and at the National level, the growth achievement, especially of
the State, during the 11th Plan could still be considered awesome, keeping in view of the fact
that three years of the 11th Plan period (2008-09, 2009-10 and 2011-12) got adversely
impacted either by global slowdown unfavorable seasonal conditions and floods.
2. Ensuring Equity and Social Justice
Consistent with recommendations of the Planning Commission to adhere to allocations for
SCs and STs in proportion to their shares in the State population, on the average, the
respective shares in the total outlays have been maintained under Scheduled Castes Sub Plan
(SCSP) and Tribal Sub Plan (TSP) in the Annual Plans.
Review of performance under priority initiatives / programmes
The following is the outcome of some of the programmes /initiatives implemented during the
11th Five Year Plan. Some of the new initiatives launched during this period are also outlined
hereunder.
Agricultural Resurgence
The state has been implementing a number of farmer-friendly initiatives to encourage
farming in the state. These include supply of free power to Agriculture; insulate farmers from
financial losses and to restore their credit eligibility in the event of crop loss through
Agricultural insurance, disbursement of agricultural credit, debt waiver encouraging frame
Rythu Sadassulu practices. Continuing the benefit, the Government has once again organized
Rythu Chaitanya Yatras during May-June 2011 in 22 districts in the state with a holistic
approach to educate the farmers at grass root level particularly small and marginal farmers
Under these Yatras, 20.47 lakh farmers have been contacted and 3.37 lakh soil samples were
collected and sent to Soil testing Laboratories. During June 2011, Rythu Sadassulu were
organized to explain about the various schemes pertaining to Agriculture and its Allied
sectors and to disseminate the Technological advances. Quality seed to farmers on 50%
subsidy has been supplied. Enough quantities of fertilizers are being assured to farmers
during Rabi- 2011-12. Further, adequate and timely credit support to farmers was also
ensured to the possible extent. All-out efforts have been made to minimize pesticide
consumption in the state through motivating the farmers through Polambadi programmes to
follow Integrated Pest Management practices.
Andhra Pradesh is the first State to have promulgated an Ordinance "Andhra Pradesh Land
Licensed Cultivators Ordinance 2011", which aims to provide loans and other benefits to the
tenant farmers through issue of Loan Eligibility Cards. With an intention to facilitate credit to
tenant farmers and ensure financial inclusion, the lists of enrolled tenant farmers who were
formed into Joint Liability Groups are made available with Banks. During 2011-12, till the
end of September, an amount of ₹116 crore credit is extended to 34,227 non- loanee farmers
and an amount of ₹ 205 crore of credit was extended to 96,845 tenant farmers. Promotion of
SRI cultivation has been taken up in a big way by providing the necessary infrastructure on
50% subsidy in all the districts to cover an area of 3.50 lakh hectares. The State is also
implementing a scheme "Bhuchetana", as an integral part of Rashtriya Krishi Vikas Yojana
(RKVY). To encourage and support farmers the Government have recently launched a new
scheme to provide interest free crop loans up to ₹ 1 lakh upon prompt repayment from Rabi,
2011, benefiting 95 lakh farmers. Priority is being given to develop clusters for improving
productivity through good horticultural practices. The Government has formulated a State
Milk Mission envisaging an outlay in excess of ₹6000 crore spreading over a period of next
five years to enhance the production.
Health Initiatives
Rajiv Arogyasri
One of objectives of the 11th Five Year Plan is to achieve good health for the people,
especially the poor and underprivileged. Rajiv Aarogyasri Health Scheme is being
implemented through Aarogyasri Health Care Trust in the state to assist 200 lakh poor
families from catastrophic health expenditure. Since inception of the scheme (1st April,2007)
till 30th September 2011, 29,021 Medical camps were held by the network hospitals in rural
areas and 48.89 lakh patients were screened in these health camps. So far, 31.75 lakh patients
were treated as out- patients and 13.48 lakh patients treated as in-patients in 346 network
hospitals under the scheme. 11.90 lakh patients underwent surgery / therapy at pre-authorized
amount of ₹ 3,319.87 Crores.
Emergency Transport (108) and Health Information (104) Services
Toll Free 108 Emergency Management Research Institute (EMRI) to enable rural poor easy
access to hospital services, free of cost, in times of emergency. Further, a Caller-free
Telephone Service (104) for the rural and urban population of the State to disseminate
information, advice and guidance related to any health problem has been undertaken by the
Government. Under the 108-service scheme, 5.06 lakh patients were transported during
January to September 2011. Further, under 104-service scheme, 1.88 Crore calls were made
under the service during 2010-11. An amount of ₹ 5891.09 crores has been spent towards
Medical & Public Health sector in the State during the 11th Plan.
Education
To make education more meaningful and effective, the State Government has been
implementing several schemes of its own and those sponsored by the Government of India.
The enrolment in the state during 2010-11 was 133.18 lakhs in all types of schools, out of
which 54.64 lakhs were in Primary schools; 23.30 lakhs in Upper Primary and 53.97 lakhs
were in High schools. In Higher Secondary, there was an enrolment of about 1.27 lakhs. The
enrolment of children consists of about 53.49% in Primary stage (I- V), 18.96% children in
upper primary (VI- VII) and 24.45% in secondary stage (VIII-X). An amount of ` 5698.80
crores has been spent towards General Education in the State during the 11th Plan.
Housing and pensions under INDIRAMMA
Under Weaker Section Housing Program, from inception through the end of March 2011,
1,00,57,318 houses have been completed: 92,42,451 in rural areas and 8,14,867 in urban
areas. During the year 2011-12 (through September 2011), 2,21,972 houses have been
completed, of which 2,06,492 are in rural areas and 15,480 are in urban areas. Incidentally,
Housing sector is the second largest shareholder of plan budget, falling only behind the
massive Irrigation sector. A total of 71,96,034 pensions are targeted to be distributed every
month. During 2010-11, an amount of ₹1922.18 crore was distributed to 66,33,631
pensioners. For the year 2011-12, an allocation of ₹ 1922.86 Crores was made in budget and
the Government have released an amount of ₹ 1436.02 Crores and ₹ 1343.82 Crores is
distributed to 68,29,962 pensioners (through November 2011).
Self Help Groups (SHGs)
The concept of Indira Kranthi Patham has been evolved with an objective of enabling all the
rural poor families in 22 rural districts of Andhra Pradesh to improve their livelihoods and
quality of life. All households below the poverty line, starting from the poorest of the poor
are the target group of Indira Kranthi Patham At present there are 1,11,02,494 SHG members
in 9,94,595 SHGs organized into 38,550 Village Organizations (VOs) and 1098 Mandal
Samakhyas(MSs). Total savings & corpus of SHG members are ₹ 3383.10 crores and ₹
5070.51 crores respectively. Social capital created during the project period up to September,
2011 is 1,73,841.
Social Harmony
From the year 2008-09, applications and sanction of scholarships to S.C, S.T and B.C
students were made ONLINE to ensure -that scholarships reach the students by the 1 of every
month and also to ensure transparency by keeping all the information in the public domain.
Apart from the above, other educational and economic development programmes are also
being implemented to SC, ST, BC and Minorities. An amount of ₹10802.47 crores has been
spent towards welfare of SCs, STs, BCs and Minorities in the State during the 11th plan
Urban Development
Economic growth, substantially driven by Industries and Services sector is witnessing
accelerated demographic expansion of urban population, not seen during last century. The
emerging challenge needs to be tackled on multiple fronts simultaneously. An amount of ₹
10700.45 crores have been spent for Urban Development in the State during the 11th plan.
Industry
There are 114 Special Economic Zones (SEZs) approved by the Government of India and of
these, 75 are notified and 27 SEZs have become operational. The projected direct
employment generation is 8,50,022 and created employment is 97763 so far. The projected
investment is ₹1,05,447 crores and achievement so far is ₹ 14,267.43 Crores. An amount of
₹ 1504.72 crores has been spent under the Industries & Minerals sector during the 11th Plan.
Information Technology
Information Technology and Communi- cations continue to thrive in our State. I.T. exports
worth ₹ 12,521 crores during 2005-06 have increased to ₹18,582 crores during 2006-07 and
further to ₹35,022 crores during 2010-11. Similar upward surge in IT exports is expected to
continue during 2011- 12 also.
Curbing Left Wing Extremism- Integrated Action Plan (IAP)
With the aim of giving a fillip to development schemes in tribal and backward regions,
mostly affected by Naxal violence, Government of India have originally taken up an
Integrated Action Plan (IAP) in 60 selected districts across the country. In Andhra Pradesh
State, the IAP programme is implemented in Khammam and Adilabad districts. However,
recently, 6 more districts, namely, Srikakulam, Vizianagaram, Visakhapatnam, East
Godavari, Warangal, and Karimnagar have been included under IAP. These new districts are
provided with an amount of ₹30.00 crore each for implementing the developmental works in
the year 2011-12. It is aimed at quick resolution of problems concerning healthcare, drinking
water, education and roads. Developmental works have been taken up in the Left-Wing
Extremism (LWE) districts on a war footing.
Twelfth Plan (2012–2017)[edit]
Main article: 12th Five Year Plan (Government of India)
The Twelfth Five-Year Plan of the Government of India has decided for the growth rate at
8.2% but National Development Council (NDC) on 27 Dec 2012 approved 8% growth rate
for 12th five-year plan.
[13]

With the deteriorating global situation, the Deputy Chairman of the Planning Commission Mr
Montek Singh Ahluwalia has said that achieving an average growth rate of 9 per cent in the
next five years is not possible. The Final growth target has been set at 8% by the endorsement
of plan at the National Development Council meeting held in New Delhi.
"It is not possible to think of an average of 9 per cent (in 12th Plan). I think somewhere
between 8 and 8.5 per cent is feasible,‖ Mr Ahluwalia said on the sidelines of a conference of
State Planning Boards and departments. The approached paper for the 12th Plan, approved
last year, talked about an annual average growth rate of 9 per cent.
―When I say feasible...that will require major effort. If you don’t do that, there is no God
given right to grow at 8 per cent. I think given that the world economy deteriorated very
sharply over the last year...the growth rate in the first year of the 12th Plan (2012-13) is 6.5 to
7 per cent.‖
He also indicated that soon he would share his views with other members of the Commission
to choose a final number (economic growth target) to put before the country’s NDC for its
approval.
The government intends to reduce poverty by 10 per cent during the 12th Five-Year Plan. Mr
Ahluwalia said, ―We aim to reduce poverty estimates by 9 per cent annually on a sustainable
basis during the Plan period.‖
Earlier, addressing a conference of State Planning Boards and Planning departments, he said
the rate of decline in poverty doubled during the 11th Plan. The commission had said, while
using the Tendulkar poverty line, the rate of reduction in the five years between 2004–05 and
2009–10, was about 1.5 percentage points each year, which was twice that when compared to
the period between 1993-95 to 2004-05.
[14]

What is Marginal Standing Facility ? / Definition of
Marginal Standing Facility - RBI (we give below details in plain
language for non bankers) :-

RBI in its Monetary Policy announced on 03rd May, 2011 that it
will soon be introducing Marginal Standing Facility (MSF). Later
on RBI announced that MSF scheme has become effective from
09th May, 2011.


Marginal Standing Facility Rate : Under this scheme, Banks are
able to borrow upto 2% of their respective Net Demand and
Time Liabilities" outstanding at the end of the second preceding
fortnight . The rate of interest on the amount accessed from this
facility wef 7th October, 2013 has been fixed at 9.00% (earlier
wef 20th September, 2013, it was reduced 9.50%). This
reduction has been done to meet the crunch in liquidity inthe
banking sector. This scheme is likely to reduce volatility in the
overnight rates and improve monetary transmission.


National Food Security Bill, 2013
From Wikipedia, the free encyclopedia


Food security and insecurity in India
The Indian National Food Security Act, 2013 (also Right to Food Act), was signed into law September
12, 2013.
[1]
This law aims to provide subsidized food grains to approximately two thirds of India's 1.2 billion
people.
[2]
Under the provisions of the bill, beneficiaries are to be able to purchase 5 kilograms per eligible
person per month of cereals at the following prices:
 rice at 3 (4.6¢ US) per kg
 wheat at 2 (3.1¢ US) per kg
 coarse grains (millet) at 1 (1.5¢ US) per kg.
Pregnant women, lactating mothers, and certain categories of children are eligible for daily free meals. The
bill was highly controversial, and despite introduction into Parliament in December 2012 was passed only in
late August 2013, after initially being promulgated as a presidential ordinance on July 5.
[3][4]

Contents
[hide]
 1 Salient features
 2 Intent
 3 Scope
 4 Commentary
o 4.1 Critics
o 4.2 Advocates
 5 See also
 6 References
 7 External links
o 7.1 Official Documents
o 7.2 Media Coverage and Comments
Salient features[edit]
1. 75% of rural and 50% of the urban population are entitled for three years from enactment to five kg
food grains per month at 3 (4.6¢ US), 2 (3.1¢ US), 1 (1.5¢ US) per kg for rice, wheat and
coarse grains (millet), respectively;
[5]

2. The states are responsible for determining eligibility;
3. Pregnant women and lactating mothers are entitled to a nutritious "take home ration" of 600
Calories and a maternity benefit of at least Rs 6,000 for six months;
4. Children 6 months to 14 years of age are to receive free hot meals or "take home rations";
5. The central government will provide funds to states in case of short supplies of food grains;
6. The current food grain allocation of the states will be protected by the central government for at
least six months;
7. The state governments will provide a food security allowance to the beneficiaries in case of non-
supply of food grains;
8. The Public Distribution System is to be reformed;
9. The eldest woman in the household, 18 years or above, is the head of the household for the
issuance of the ration card;
10. There will be state- and district-level redress mechanisms; and
11. State Food Commissions will be formed for implementation and monitoring of the provisions of the
Act.
Intent[edit]
The intent of the National Food Security Bill is spelled out in the Lok Sabha committee report, The National
Food Security Bill, 2011, Twenty Seventh Report, which states, "Food security means availability of
sufficient foodgrains to meet the domestic demand as well as access, at the individual level, to adequate
quantities of food at affordable prices." The report adds, "The proposed legislation marks a paradigm shift
in addressing the problem of food security – from the current welfare approach to a right based approach.
About two thirds of the population will be entitled to receive subsidized foodgrains under Targeted Public
Distribution System."
Scope[edit]
The Indian Ministry of Agriculture's Commission on Agricultural Costs and Prices (CACP) has referred to
the Bill as the "biggest ever experiment in the world for distributing highly subsidized food by any
government through a ‘rights based’ approach."
[6]
The Bill extends coverage of the Targeted Public
Distribution System, India's principal domestic food aid program, to two thirds of the population, or
approximately 820 million people. Initially, the Lok Sabha Standing Committee on Food, Consumer Affairs
and Public Distribution estimated a "total requirement of f oodgrains, as per the Bill would be 61.55 million
[metric] tons in 2012-13."
[7]
The CACP calculated in May 2013, "...the requirement for average
monthly PDS offtake is calculated as 2.3 mt for wheat (27.6 mt annually) and 2.8 mt for rice (33.6 mt
annually)..." When volumes needed for the Public Distribution System and "Other Welfare Schemes" were
aggregated, the CACP estimated rice and wheat requirements to total an "annual requirement of 61.2"
million metric tons.
[6]
However, the final version of the Bill signed into law includes on page 18 an annex,
"Schedule IV", which estimates the total food grain allocation as 54.926 million metric tons.
[8]

The Standing Committee estimated that the value of additional food subsidies (i.e., on top of the existing
Public Distribution System) "during 2012-13 works out to be...Rs.2409crores," that is, 24.09 billion rupees,
or about $446 million at the then-current exchange rate, for a total expenditure of 1.122 trillion rupees (or
between $20 and $21 billion).
[7]
However, the Commission on Agricultural Costs and Prices (CACP)
calculated, "Currently, the economic cost of FCI for acquiring, storing and distributing foodgrains is about
40 percent more than the procurement price."
[9]
The Commission added,
The stated expenditure of Rs 1,20,000 crore annually in NFSB is merely the tip of the iceberg. To
support the system and the welfare schemes, additional expenditure is needed for the envisaged
administrative set up, scaling up of operations, enhancement of production, investments for
storage, movement, processing and market infrastructure etc. The existing Food Security Complex
of Procurement, Stocking and Distribution- which NFSB perpetuates- would increase the
operational expenditure of the Scheme given its creaking infrastructure, leakages & inefficient
governance.
[9]

The Commission concluded that the total bill for implementation of the Bill "...may touch an
expenditure of anywhere between Rs 125,000 to 150,000 crores," i.e., 1.25 to 1.5 trillion rupees.
[9]

Commentary[edit]
Critics[edit]
Criticism of the National Food Security Bill includes accusations of both political motivation and fiscal
irresponsibility.
[10][11][12][13]
One senior opposition politician, Murli Manohar Joshi, went so far as to
describe the bill as a measure for "vote security" (for the ruling government coalition) rather than food
security.
[10]
Another political figure, Mulayam Singh Yadav, declared, "It is clearly being brought for
elections...Why didn’t you bring this bill earlier when poor people were dying because of
hunger?...Every election, you bring up a measure. There is nothing for the poor."
[14]

The report of the 33rd meeting of the Technical Advisory Committee on Monetary Policy stated,
"...Food prices are still elevated and the food security bill will aggravate food price inflation as it will tilt
supply towards cereals and away from other farm produce (proteins), which will raise food prices
further...Members desired that the Reserve Bank impress on the government the need to address
supply side constraints which are causing inflationary pressure, especially on the food
front."
[15][16]
Dr. Surjit S. Bhalla warned, "The food security bill...if implemented honestly, will cost 3 per
cent of the GDP in its very first year."
[17]
The writer Vivek Kaul noted,
The government’s estimated cost of food security comes at 11.10%...of the total receipts. The
CACP’s estimated cost of food security comes at 21.5%...of the total receipts. Bhalla’s cost of food
security comes at around 28% of the total receipts...Once we express the cost of food security as
a percentage of the total estimated receipts of the government, during the current financial year,
we see how huge the cost of food security really is.
[18]

The Indian Ministry of Agriculture's Commission on Agricultural Costs and Prices warned that
enactment of the Bill could be expected to "induce severe imbalance in the production of oilseeds
and pulses," and "...will create demand pressures, which will inevitably spillover to market prices
of food grains. Furthermore, the higher food subsidy burden on the budget will raise the fiscal
deficit, exacerbating macro level inflationary pressures."
[9]
The Commission argued further that the
Bill would restrict private initiative in agriculture, reduce competition in the marketplace due to
government domination of the grain market, shift money from investments in agriculture to
subsidies, and continue focus on cereals production when shifts in consumer demand patterns
indicate a need to focus more on protein, fruits and vegetables.
[9]

Advocates[edit]
The bill was widely viewed as a "pet project" of Indian National Congress President Sonia
Gandhi.
[19][20]
Gandhi addressed Parliament the night of the August 2013 Lok Sabha vote on the
bill, saying its passage would be a "chance to make history."
[21]

Former National Advisory Council member and development economist Professor Jean Drèze,
reputedly one of the architects of the original, 2011 version of the bill, wrote, "...the Bill is a form of
investment in human capital. It will bring some security in people’s lives and make it easier for
them to meet their basic needs, protect their health, educate their children, and take
risks."
[22]
Professor Drèze dismissed opposition from business interests, saying, "Corporate
hostility does not tell us anything except that the Food Bill does not serve corporate interests.
Nobody is claiming that it does, nor is that the purpose of the Bill."
[23]

Minister of Consumer Affairs, Food, and Public Distribution K.V. Thomas stated in an interview,
This is no mean task, a task being accomplished in the second most populated country in the
world. All the while, it has been a satisfying journey. The responsibility is not just of the Central
Government but equally of the States/[Union Territories]. I am sure together we can fulfill this
dream. The day is not far off, when India will be known the world over for this important step
towards eradication of hunger, malnutrition and resultant poverty...By providing food security to 75
percent of the rural and 50 percent of the urban population with focus on nutritional needs of
children, pregnant and lactating women, the National Food Security Bill will revolutionize food
distribution system.
[3]

In a rebuttal to Dr. Surjit S. Bhalla, three economists responded, "...the food subsidy bill
should roughly double and come to around 1.35% of GDP, which is still way less than the
numbers he put out."
[24]



The Election Commission of India ordered on 13 October 2013 the Chief Electoral Officers of all States and Union territories to provide for None of the Above
(NOTA) option in electronic voting machines (EVMs) and ballot papers.

The None of the Above option will be provided at the bottom of the panel on the EVMs or as the last row in the ballot paper after all the candidates have
been listed with their respective symbols in the same language used to list the candidates. Likewise, the contours of the NOTA panel will be identical to that
given to each candidate.

In constituencies contesting more than 16 candidates in the fray, an extra EVM will be attached to the first balloting unit for the NOTA option as the EVMs
currently in use can accommodate only 16 rows.
The NOTA votes will be counted and indicated in the final result chart.

The Election Commission of India clarified that in the extreme case of the NOTA option polling more votes than any of the candidates in the fray, the
candidate who gets the maximum number of votes will be declared the winner.

The NOTA option was made mandatory by the Supreme Court of India on 27 September 2013 and gave the direction to the Election Commission of India to
provide none of the above options at the end of the list of candidates contesting an election in a constituency.