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Five Year Plans of India


WELCOME
Why to Plan ???
2
q
After independence, India was in dire conditions and
needed to start acting soon
q
Some of the problems necessitated need for an immediate
plan:

Vicious circle of poverty

Foreign Trade

eed for !apid industriali"ation

#opulation pressure

$evelopment of atural resources

%apital $eficiency & 'ar(et imperfections


First Five Year Plan
(1951-1956)
3
Introduced by the then #' #t) *) ehru between the period
+,-+.-/
The one responsible .. #lanning %ommission

Improve living standards of the people in India which was possible by


ma(ing 0udicious use of atural !esources)

Total outlay of this plan .. A massive Rs.`2069 %r


The segregation 1
Industrial sector
2nergy, irrigation
Transport, %ommunications
3and !ehabilitations
Social services
$evelopment of Agri & community
Objetives!
Objetives! (ont")
4

Importance was given to agri and irrigation4 #ower to decrease reliance on


Food 5rain, Imports & resolve Food crisis
A few things that happened 6666
'ettur, 7ira(ud & 8ha(ra $ams were a few pro0ects that were started
5ovt) decides to improve !ailway Services, !oad trac(s & %ivil Aviation,
also decides to provide sufficient funds to the Industrial sector & to ta(e
measures for the growth of SSI9s)
The growth in 5$# achieved by India was :)/; p)a)
The target was 6666666)
2)+; p)a)
S<%%2SS ========
#eond Five Year Plan
(1956-1961)
-
Objetives!

To increase the national income by 2-;

To ma(e the country more industriali"ed

$evelopment of the public sector

To increase employment opportunities so that every citi"en gets a


0ob
/
$hieve%ents!

Five steel mills at 8hilai, $urgapur, and *amshedpur

7ydroelectric power pro0ects

#roduction of coal increased

'ore !ailway lines were added in the north east

Improved the living standards of the people

The large enterprises in seventeen industries were nationali"ed


The Tata Institute of Fundamental !esearch 1 established in
+,-> as a research institute
Atomic 2nergy %ommission .. 7omi *) 8habha ?Founder,
+,-@A
&hird Five Year Plan
(1961-1966)
7
Objetives!

'ore stress to agriculture

Subsidies

Sufficient help

To increase the national income by -; per annum

'a(ing India self sufficient in food grains by increasing agricultural


production

'inimi"ing rate of unemployment

To establish equality among all the people of the country


$hieve%ents!
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The #anchayat Brgani"ation was formed

'any primary schools were started in rural areas

State electricity boards and state secondary education boards were


formed

State road transportation corporations were formed

'any cement and fertili"er plants were also built


Proble%s faed!
Sino.Indian Car of +,/2 eDposed wea(nesses in the economy and shifted
the focus towards the $efense industry) In +,/-.+,//, India fought a war
with #a(istan) The war led to inflation and the priority was shifted to price
stabili"ation) 5$# rate during this duration was lower at 2)>;)
Fo'rth Five Year Plan
(1969 to 19())
,
At this time Indira 5andhi was the #rime 'inister)
The 5ovt) nationali"ed +, ma0or Indian ban(s)
Objetives!

To reform and restructure its eDpenditure agenda ?$efense became one


ma0or eDpenseA

To facilitated growth in eDports

To alter the socio economic structure of the society


$hieve%ents!
+E

5reat advancement has been made with regard to IndiaFs national


income

Served as a stepping stone for the economic growth

Tested the first nuclear weapon with Smiling 8uddha in


+,>G

%onsidered as one of the emerging powers

Food grains production increased to bring about self sufficiency in


production
Proble%s faed!

$ue to recession, famine and drought, India did not pay


much heed to long term goals)

A gap was created between the people of the rural areas


and those of the urban areas)
Fifth Five Year Plan
(19() to 19(9)
++
Objetives!

To reduce social, regional, and economic disparities

To enhance agricultural productivity

To chec( rural and urban unemployment

2ncourage Self.employment

#roduction support policies in the cottage industry sector

To develop labor intensive


technological improvements
$hieve%ents!
+2

Food grain production was above ++@ million tons due to the
improvement of infrastructural facilities

8ombay 7igh had shot up the commercial production of oil in


India
Problems faced

The world economy was in a troublesome state

This had a negative impact on the Indian economy

#rices in the energy and food sector s(yroc(eted and as a


conseHuence inflation became inevitable
#i*th Five Year Plan
(19+, to 19+5)
+:
/th Five Ir #lan .. Jnown as *anata 5ovt)
#lan
B8*2%TIV2S

To improve productivity level

To initiate moderni"ation for achieving economic and technological


self.reliance

To control poverty and unemployment

To develop indigenous energy sources and efficient energy usage

To promote improved Huality of life of the citi"ens

To introduce 'inimum eeds #rogram for the poor

To initiate Family #lanning


$hieve%ents!
+G

Speedy industrial development

2mphasis on the information technology sector

Self sufficiency in food

Science and technology also made a significant


advance

Several successful programs on improvement of public


health

5overnment in the Indian healthcare sector

5overnment investments in the Indian healthcare


sector
Proble% faed!
$uring this time the #rime 'inister was !a0iv 5andhi and hence
industrial development was the emphasis of this plan some opposed
it specially the communist groups, this slowed down the pace of
progress)
#eventh Five Year Plan
(19+5 to 19+9)
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%ongress comes into power
Objetives!

Anti-poverty program

Improved facilities for education to girls

The government undertook to increase


productivity of

il seeds! "ruits! #egeta$les

%ulses! cereals! "ish

&gg! 'eat! milk(

)ommunications

&mergence of informatics! and hooking up of


telecommunications *ith computers

Transport

Inland *ater*ays! product pipelines! civil


aviation! coastal shipping
$hieve%ents!

+ocial ,ustice

-emoval of oppression of the *eek

.sing modern technology

Agricultural development

Anti-poverty programs

"ull supply of food! clothing! and shelter

Increasing productivity of small and large scale farmers

'aking India an Independent &conomy


Proble%s faed!

+,@,.,+ was a period of political instability in


India & hence no Five Ir #lan was
implemented

In +,,+, India faced a crisis in Foreign


2Dchange !eserves
-i.hth Five Year Plan
(199/ to 199()
+>
Objetives!

#rioriti"e the specific sectors which reHuires immediate investment

To generate full scale employment

#romote social welfare measures li(e improved healthcare,


sanitation, communication and provision for eDtensive education
facilities at all levels

To chec( the increasing population growth by creating mass


awareness programs

To encourage growth and diversification of agriculture

To strengthen the infrastructural facilities


+@
$hieve%ents!

!ise in the employment level

#overty reduction

Self.reliance on domestic resources

Self.sufficiency in agricultural production

5$# 5rowth #er Annum -)/


+,
0inth Five Year Plan
(199( to /,,/)
Objetives!

To prioriti"e rural development

To generate adeHuate employment opportunities

To stabili"e the prices

To ensure food and nutritional security

To provide for the basic infrastructural facilities li(e education


for all, safe drin(ing water, primary health care, transport,
energy

To chec( the growing population increase

To encourage social issues li(e women empowerment

To create a liberal mar(et for increase in private investments


2E
$hieve%ents!

A combined effort of public, private, and all


levels of government

2nsured the growth of IndiaFs economy)

Service sector showed fast growth rate


PPT
&enth Five Year Plan
(/,,/ to /,,()
/1
0,&)TI#&+

To transform the country into the fastest gro*ing economy of the


*orld

Targets an annual economic gro*th of 112

3uman and social development

The social net

Industry and services4


Industry! 'inerals! &nergy! Information technology! Tourism! -eal
estate! )onstruction! Internal trade

"orests and environment

+cience and technology

+pecial area programs

+chooling to $e compulsory for children


PPT
7owever, there are several aspects of development
where our progress is clearly disappointing) Some of the
wea(nesses are:
I) The decline of unemployment is relatively high at
above >;)
II) 'ore than half of the children +.- years old in rural
areas are under nourished)
III) The girl children are suffering even more severe
malnutrition)
IV) The infant morality rate has stagnated at >2 per +EEE
for the last several years)
V) As many as /E; of rural households and about 2E;
of urban household do not have a power connection)
VI) Bnly /E; of urban households have taps within their
homes)
VII) The Tenth #lan must learn from past eDperience) It
must strengthen what has wor(ed well, but it must also
avoid repeating past failures) It is with ob0ective that
the tenth Five Iear #lan is being drawn up as a
!eform #lan instead of merely having a !esource
#lan)
-leventh Five Year Plan
(/,,(-/,1/)
2:
Objetives1&ar.ets of 2lan!

Infrastructure
5
!oads
5
#orts
5
Airports
5
!ailways
5
#ower
5
Irrigation
5
TelecomKIT

2ducation

Iouth Affairs

Sports and #hysical 2ducation

7ealth

Comen and %hildren

Income and #overty

2nvironment
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$ssess%ent of -ono%i Plannin. in India!


o
$hieve%ents!
+) Increase in ational Income
2) Increase in #er %apita
Income
:) Increase in the !ate of
%apital Formation
G) $evelopment of Agriculture
-) Industrial $evelopment
/) Infrastructure $evelopment
>) 5eneration of 2mployment
@) $evelopment of Social
Services

3ife 2Dpectancy

$eath !ate

2ducation

7ealth
,) Self.!eliance
+E) Structural and Institutional
%hanges
o
Fail'res!
The ma0or failures of economic
planning are as follows:
+) o Substantial Increase in the
Standard of 3iving
2) Increase in <nemployment
:) IneHuality in $istribution of
Income and Cealth
G) 'ore Ambitious
-) #aradoD of Saving and
Investment
/) #redominance of Celfare
%onsiderations
>) 3ess 5rowth in #roductive
Sector
&3elfth Five Year Plan
(/,1/-/,1()

To deal with disparity of income and wealth

Govt. activism required for socially desirable activities with


available resources and foreign exchange

Govt. intervention required for development of infrastructure

Balanced regional development.


Objetives!

%n )2th five year plan* +, G-. growth is expected. (igher


investment and fund mobili/ation will induce mar0et
development and employment.

'ell regulated and integrated mar0ets would generate enough


1obs and live hood opportunities. -evelopment through efficient
capital mar0ets and public private partnership will further boost
the economy and thus may sustain the growth rate of + ,.

Growth of a sector through ... model would lead to


decentrali/ation of economies and inclusion of various sectors*
such that a parallel economic development is induced from this
multi2sectoral growth approach.
%ndia is now self dependent for domestic food demands as a
result of green revolution and previous five year plans. &ural
economy growth has to be enhanced by sustained agriculture
growth and development of rural areas by providing rural
infrastructure and amenities.

3 balanced regional development can be achieved through agro2


dependent sectors.

%nnovative technologies and open2mar0et economies would


enhance (-% of rural population. 6or all perishable products
investments and institutional development are more important
than subsidies or price support systems.

6orest economies and tribal societies need greater protection


and promotion

%n order to attain an overall growth urban governance* urban


renewal* finance and urban transportation reforms should be
focused.

3dequate transport facilities would result in efficient


distribution networ0* thereby reducing in accessibility and
consequently save the cost involved. %mproved connectivity
would also help in managing urbani/ation and reduction of
migration in metro cities* leading to development of small and
medium town.

nergy efficient transport systems needs to be incorporated


with emphasis on eco2friendly and renewable resources.

'ith the fast pace of industrialisation* %ndia is already loosing


area under forest cover rapidly. $ore human interventions will
lead to severe loss of habitat.

9 nvironmental degradation and ecological imbalance are the


two aspects which result out of development initiatives at local
and global levels. Growth of economy without compromising on
environment is a 0ey issue to be addressed as* sustainable
growth is essential now.

9 Technological advancement* equitable distribution*


affordability along with public awareness is ma1or points of
concern.

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