DEVELOPMENT PLANS IN INDIA

Building Economics
VI Semester III Year
Aims of Development
 To Build
 Infrastructure
 Public Service
 Communication
 To Improve
 Education
 Health
 Living Condition
 To Generate
 Employment
 Local businesses
 Economical Activities
Introduction to Planning in India
 1947- India- an underdeveloped country.
 Reason- exploitation during colonial rule.
 Effect- Poverty
 Deficiency of entrepreneurs and industries
 Thus, to improve the economy and living standards
of the people, it was necessary to accelerate rate
of economic growth.
Economic and Developmental Issues in
India
 Low per capita income
 Huge dependence of population on agriculture
 Heavy population pressure
 The existence of chronic unemployment and under-
employment
 Inequality in wealth distribution
 Poor Quality of Human Capital
 Lack of access to basic amenities
 Under-utilisation of natural resources
 Lack of infrastructure
Objectives of Indian Planning
 Acceleration of economic growth
 Improving the awareness and rate of savings and investment
to accelerate the rate of economic growth
 Improvement in the living standards of the people
through better education and government awareness
programmes
 Generation of employment opportunities
 Eradication of poverty
 Emphasis on Industrialisation
 Mahalanobis growth model, laid stress on the
industrialisation -the development of basic heavy industries
and capital goods industries.
Five Year Plans of India
 Inspired by Russia- India adopted:
 Planning as an instrument of economic development.
 The Planning Commission-
◼A commission set up to prepare five year plans to kick start
the Indian economy
◼ To Allocate resources at both centre and state level as per
plan priorities in the plan.
First Five Year Plan (1951-56)
 December 8, 1951
 Presented by PM Jawahar Lal Nehru
 Based on Harrod Domar Model
 Problems at the time:
◼ Influx of refugees
◼ Shortage of food
◼ Inflation
 Objectives
◼ Recover from partition
◼ Recover from disequilibrium in economy – WWII
◼ Controlling Inflation and food shortage
Second Five Year Plan (1956-61)
 Objectives:
 Rapid Industrialization
 Development of Heavy Industries

 Developments of capital goods-Iron, Steel, Chemicals

etc.
Third Five Year Plan (1961-66)
 Objective:
 Establish India as a self-reliant and a self-generating
economy.
 The Second Plan slowed rate of growth of agricultural
production
 Third Plan included agricultural development to achieve
balanced regional development.
 This plan could not meet its objectives due to the following
reasons
◼ Indo-China war in 1961-62
◼ Indo-Pak war in 1965-66
◼ Severe drought-led famine in 1965-66
Fourth Five Year Plan (1969-74)
 Objective:
 Growth with Stability
 Progressive Achievement of Self-Reliance

 Aim - 5.5 percent average growth rate of the national

income
 national minimum for the weaker sections of the society
(called ‘Garibi Hatao Abhiyaan’).
 Indo-Pak war in 1971-72 created a financial crunch for
the plan.
Fifth Five Year Plan(1974-79)
 Objective:
 Removal of poverty
 Attainment of self-reliance
 Planned through the promotion of higher growth rates
 Better income distribution
 A significant increase in the domestic rate of saving
 Import substitution and export promotion
 National Program on fulfilling minimum needs like
◼ Housing
◼ Drinking water
◼ Primary education, etc.
Sixth Five Year Plan (1980- 85)
 Objective:
 The socio-economic infrastructure in the rural areas
 Eliminate rural poverty

 Reduce regional disparities through IRDP-Integrated

Rural Development Program (1979)
Seventh and Eighth Five Year Plan (1985 – 90 & 92-97)

 Objective:
 Rapid production of food grains
 Increase in the creation of employment and productivity

 Due to the severe economic crises during 1992,

Government initiated fiscal reforms to provide
dynamism to the economy i.e. Fiscal Decentralization

Ninth Five Year Plan (1997 – 2002)

 Objective:
 Seven Basic Minimum Services(BMS)
◼ Safe drinking water
◼ Primary health service
◼ Universalization of primary education
◼ Public housing assistance to shelter-less families
◼ Nutritional support to children
◼ Connectivity of all villages and habitations
◼ Streamlining the public distribution system
Tenth Five Year Plan (2002 – 07)
 Objective:
 To double the per capita income in next 10 years
 Higher growth rate to ensure better quality of life
 Setting Monitorable targets
 Governance as a factor of development
 Policy and institutional reform
 Declaring Agriculture sector as the Primary Moving
Force of the Indian Economy-Empowering the farmer
 Emphasis and development of social sector-Health,
Education etc.
Eleventh Five Year Plan (2007-12)
 Towards Faster and more Inclusive Growth
 Objective:
 Reducing poverty and increasing employment opportunities
 Easy access to essential services
◼ health and education for the poor
 Empowerment of the masses
◼ Through education and development of skills
 Introduction of the National Rural Employment Guarantee Program
 employment opportunities to all
 Environmental sustainability
 Reducing gender inequality
 Improving the overall governance
Twelfth Five Year Plan (2012 – 17)
 Objective:
 Restrain inflationary pressure
◼ Inflation: a general increase in prices and fall in the purchasing value
of money.
 Ensure that the commercial energy supplies grow at a rate of 6.5-
7 percent per year.
 Develop a holistic water management policy
 Suggest new legislation for the acquisition of land
 Focus on health, education, and skill development
 Large investments in the development of the infrastructure sector
 Emphasis on the process of fiscal correction
 Efficient use of available resources
Annual Plans
 Acquired to achieve the goals of the previous plans
 Or in case of a failure in plans due to unavoidable
reasons in the country.
Decentralization in India
 The devolution from the Central Government to the provincial and
local government
 of functions
 functionaries and
 Funds
is decentralisation.
 Customarily decentralisation is termed as
 delegation of decision making power to the lower levels of governments
 As per studies,
 decentralisation improves accessibility
 promotes responsibility
 Ensures accountability and effectiveness of the government.
Importance of Decentralization
 Decentralisation promotes economic value
 Leads to good governance
 Enhances political participation at local level
 Said to reduce poverty through need based
approach to resource usage
 Involves the citizens in the process of development
Regional Planning
 ‘Regional’ – of a particular area, localized territory
or zone.
 ‘Planning’ – Step-by-step outlining of tasts, goals
and objectives to strategise and organize activity.
Regional Plans
 Regional Planning deals with
efficient placement of land use
activities, infrastructure and
settlement growth across a
larger area of land than an
individual city or town.
 It is the science of efficient
placement of infrastructure
and zoning for the sustainable
growth of a region.
 Regional Development
addresses region wide
environmental, social and
economic issues which may
require a regional focus.