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3rd five-year plan The main objective of 3rd five-year plan was to increase the quality of the life of the citizens through effective use of the country resources. The various tasks of Third five year plan are- To increase the national income by 5% per year, to increase the production of agriculture so that the nation becomes self sufficient in food grains, to provide employment opportunities for every citizens of the country, to establish equality among all the people of the country. In the earlier two five years plan government only focus on infrastructure and PSUs. However, in third five year plan of India, government gave stress on agriculture because increase in agriculture provide growth of Indian economy, sufficient subsidies were planned by government for the agriculture sector. Total Government allocation for third year plan was Rs 11600 crore in which Rs 7500 crore was for the public sector and Rs 4100 crore for the private sector.
Table clearly shows that government expenditure is less then allocation, with slight growth in every sector. There are many reasons for this low growth rate, which we will be discussing in different section. Achievement According to graph 1 there is slight growth in National Income, Mining and industries and Agriculture and allied sector. During the third year plan national income at 1960-61 rose by
20% in the first four years and then decline by 5. NATIONAL INCOME ——— (1960-61=100)——— 1960-61 61-62 62-63 63-64 64-65 65-66 66-67 67-68 68-69 .6 % in last year. Growth in national income and output of agriculture and industries during the last eight year is shown in Table 2.
shortage of foreign exchange because of the need for high imports of food grains and raw material. favorable weather condition. Government allocated Rs. pesticides and water. special program have been started for development of rural area. establishment of small industries in rural area. In the rural area this employment opportunities will be through labor-intensive scheme such as minor irrigation. Indira Gandhi. After the attack in the year 1962 and 1965. this is because facilities as if primary health centers not covers all parts of country still there is wide gap between states. In urban area manufacturing industries play important role in providing employment. soil conservation. however. There has been negligible progress in education and public health. 15. this improvement is for short term. The performance of agriculture during the first three years of the Third Plan was not satisfactory. agriculture production decreases gradually in subsequent two year due to draught. India had reformed and restructured its expenditure agenda. The Fourth Five-Year Plan called for a 24 percent increase over the third plan in real terms of public development expenditures. The public sector accounted for 60 percent of total plan .Table 2 shows industrial production increased by only 0. The production of food grains in 1969-70.5% in 1967-68. less investment. was a year of favorable weather conditions shows increase in harvest. the year when the 4th Five Year Plan was presented by the Prime Minister of India Smt. India did not pay much attention to long-term goals. In some important industries such as fertilizers. electrical machinery and pumps shows satisfactory rate of growth. However. increase in use of fertilizers. Instead. One of the major objectives of the plan was to create more employment opportunities in rural and urban sector on high scale. employment in this sector is due to increase in PSUs. However short progress in education is due to rapid spread of secondary and higher education. Due to recession. In 1964-65. 8. there were many factors which contribute in decline of growth rate: decline in purchasing power. it responded to the need of the hour. estimated at 100 million tonnes. is higher than the 1968-69 production by about 6 million tonnes. In 1967-68.980 crores for the private sector. Extension of irrigation and multiple cropping should result in a considerable increase in the demand for agricultural labor in many areas.902 crores was in respect of the public sector and Rs. petroleum products. sharp increase took place due to combined result of the establishment of new varieties of cereal seeds.2% in 1966-67 and there was growth of 0. 4th Five-Year Plan (1969-1974) 1969. famine and drought. non-ferrous metals. in which Rs. 24882 crores for 4th Five Year Plan.
improved practices and community development given in fourth five-year plan. A new awareness of the importance of irrigation. 3. . the country imported 25 million tons of food-grains. There has been much greater demand and increasing use of chemical fertilizers. and foreign aid contributed 13 percent of plan expenditure. Higher prices have made farmers in many parts of the country readily receptive to new practices and inputs. the rest was spent on electric power. insecticides and other inputs. Table 1: Estimate and Target of Production Agriculture has always enjoyed a high priority in Indian planning and emphasis on irrigation.9 million bales of cotton and 1. and transportation. industry. including irrigation. received 23 percent of public outlays. intensive use of subsoil water in many areas has emerged. Agriculture. so the main objective of 4th Five Year Plan was to increase the agricultural production and to increase the flow of foreign reserves in the country.expenditures. Excessive import of food grains and other agricultural products created the shortage of foreign reserve in the country. Successful research in plant breeding using foreign genetic material has resulted in the establishment of high yielding varieties of cereal seeds. The poor growth of agricultural production not only depressed the rate of growth of the economy but also led to an increase in the dependence on imports of food grains and other agricultural commodities during third five-year plan. Following table shows the estimated agricultural production in 1968-69 and targets at the end of the plan. The possibility of an upward surge in agricultural production seems to be establishing during this plan. During the Third Plan.5 million bales of jute.
At the end of fourth five year plan the objective has not been achieved to the great extent. namely food. funds provided for replantation of tea bushes and modernization of processing and packaging facilities. One of the important pre-condition of success in achieving the export goals during the Fourth Plan was to maintain the internal price stability. the Fourth Plan provides for the development of major ports and their modernization and re-equipment.requisite of success in the export effort particularly in the case of manufactured products. especially in the case of primary agricultural products. No doubt value of exports also increased but the balance of trade showed a deteriorating trend. loading and berthing facilities at the ports were improved. as against 23% in 1972-73. This would mean an increase of about 40 per cent in exports over a period of five years of a compound rate of growth of 7 per cent per year. In absolute terms the import bill for these items increased from Rs. adequate provision made for modernization and rehabilitation of manufacturing units as part of the export promotion effort.8%. The value of the three principal items of imports.Exports in 1969-70 were estimated to be around Rs. In the case of major traditional exports like cotton textiles and jute manufactures.76% of the total import bill in 1973-74. Main objective of the five year plan was to increase the agricultural production but at the end of the plan the agricultural production is increased by only 2. Subsequently. The trade gap turned from a surplus of Rs. 540 crores over the base year (1968-69) level of Rs. . The balance of payment position also came under severe strain. Improvement in port and shipping facilities is of vital importance in the promotion of export. Severe drought in 1972 created the shortage of food grains in the country that resulted in the inflation in the country and it strengthened in 1973-74. 1900 crores in 1973-74. Handling. fertilizers.4 crores in 1972-73 to a deficit of Rs. showing a rise of Rs. 431 crores in 1972-73 to Rs. fertilizers and POL accounted for as much as 42. 432 crores in 1973-74. The four-fold increase in oil prices and increase in prices of cereals. Competitiveness in cost and quality is an important pre. it was expected to rise progressively during the period of the Fourth Plan and reach a level of around Rs. unless there are overriding considerations to justify such action. Similarly. 103. 1260 crores in 1973-74. In the interest of promoting exports regulatory or restrictive measures in the form of bans or export quotas should be kept to the minimum. representing an increase of about 3 per cent over 1968-69. A determined and constant effort made in order to improve efficiency and to reduce cost. non-ferrous metals and other imported goods severely eroded the resources. Large quantities of food grains and essential wage goods had to be imported. 1360 crores. machinery and equipment. 1400 crores.
nic.Reference: www.in .planningcomission.