FIVE YEAR PLAN is 

one of a continuing series of Soviet governmental

programs designed to achieve usually specified goals in the planned,
coordinated, and cumulative development of the Soviet economy and
other sectors of Soviet life over a period of five years.
• The five-year plans were conceived to re-build rural India, to lay the foundations of
industrial progress and to secure the balanced development of all parts of the
country.

• Recognising "health" as an important contributory factor in the utilisation of

manpower and the uplifting of the economic condition of the country, the Planning
Commission gave considerable importance to health programmes in the five- year
plans.

• The 11th five-year plan :2007-2012

• The 12th five- year plan: 2012-2017

Planning Commission
The planning commission is an organization in the government of India
which formulates India's five- year plan.
• It was Set up on 15 Mar, 1950 with prime minister Jawaharlal Nehru as the
chairman. First Five- Year Plan 1951-56.
• In 12th five- year plan, Mr Montek Singh Ahluwalia holds the position of
deputy chairman.
• Prime minister was the chairman of the commission

Failures of 11th five- year plan -

 GDP growth was target to reach 9.0 % but reached only 8.2 %
 Fails to achieve
 IMR goal :28/1000 live births. 42 per 1000 now aimed to 25 per 1000.
 >MMR goal: 1/1000 per live births
 >TFR :2.1 present 2.5/1000
 Child sex ratio at birth improved by 2 points to 908 from 906
Fm/1000 M.
 OBJECTIVES OF PLANNING COMMISSION -

 Increased Levels of Employment: An important aim of economic

planning in India is to better utilise the available human resources of
the country by increasing the employment levels.
 Economic Development: This is the main objective of planning in India.
Economic Development of India is measured by the increase in
the GDP and Per Capita Income of India.
 Self Sufficiency: India aims to be self-sufficient in major commodities
and also increase exports through economic planning. The Indian
economy had reached the take-off stage of development during the
third five-year plan in 1961-66.
 Economic Stability: Economic planning in India also aims at stable
market conditions in addition to the economic growth of India. This
means keeping inflation low while also making sure that deflation in
prices does not happen. If the wholesale price index rises very high or
very low, structural defects in the economy are created and economic
planning aims to avoid this.
 Social Welfare and Provision of Efficient Social Services: The objectives
of all the five- year plans as well as plans suggested by the NITI
AAYOG aim to increase labour welfare, social welfare for all sections of
the society. Development of social services in India, such as education,
healthcare and emergency services have been part of planning in India.
 Regional Development: Economic planning in India aims to reduce
regional disparities in development.
 Comprehensive and Sustainable Development: Development of all
economic sectors such as agriculture, industry, and services is one of
the major objectives of economic planning.
 Reduction in Economic Inequality: Measures to reduce inequality
through progressive taxation, employment generation and reservation
of jobs has been a central objective of Indian economic planning since
independence.
 Social Justice: This objective of planning is related to all the other
objectives and has been a central focus of planning in India. It aims to
reduce the population of people living below the poverty line and
provide them access to employment and social services.
 Increased Standard of Living: Increasing the standard of living by
increasing the per capita income and equal distribution of income is one
of the main aims of India’s economic planning.
HISTORY OF ECONOMIC PLANNING IN INDIA

Economic planning in India dates back to pre-Independence period when

leaders of the freedom movement and prominent industrialists and
academics got together to discuss the future of India after Independence
which was soon to come. Noted civil engineer and administrator M.
Visvesvaraya is regarded as a pioneer of economic planning in India. His
book “Planned Economy for India” published in 1934 suggested a ten year
plan, with an outlay of Rs. 1000 crore and a planned increase of 600% in
industrial output per annum based on economic conditions of the time.
The Industrial Policy Statement published just after independence in 1948
recommended setting up of a Planning Commission and following a mixed
economic model. Here are the major milestones related to economic
planning in India:

 Setting up of the Planning Commission: 15 March 1950

 First Five- Year Plan: 9 July 1951
 Dissolution of the Planning Commission: 17 August 2014
 Setting up of NITI (National Institution for Transforming India)
Aayog: 1 January 2015
Setting up the NITI Aayog was a major step away from the command
economy structure adopted by India till 1991. The Planning Commission’s
top-down model of development had become redundant due to present
economic conditions and NITI Aayog approaches economic planning in a
consultative manner with input from various state governments and think
tanks.
THE CURRENT FIVE- YEAR PLAN OF INDIA
According to this plan, ‘It must be guided by a vision of India moving forward in a manner
that would ensure a broad-based improvement in the living standards of all the people
through a growth process which is faster than in the past, more inclusive, and also more
environmentally sustainable.

THE OBJECTIVES OF THIS PLAN ARE AS FOLLOWS-

1. A growth rate of 9 percent
2. Focus on the agricultural sector and have an average growth of 4 percent during
the Plan period
3. Restrain inflationary pressure
4. For the growth of GDP, ensure that the commercial energy supplies grow at a rate
of 6.5-7 percent per year.
5. Suggest new legislation for the acquisition of land
6. Continue focus on health, education, and skill development
7. Large investments in the development of the infrastructure sector

8. Develop a holistic water management policy

9. Emphasis on the process of fiscal correction
10. Efficient use of available resources

STRATEGIC CHALLENGES-
Based on an intensive process within the Commission, following "Twelve Strategy
Challenges" have been identified :
1. Enhancing the Capacity for Growth 2. Enhancing Skills and Faster Generation of
Employment
3. Managing the Environment
4. Markets for Efficiency and Inclusion
5. Decentralization, Empowerment and Information
6. Technology and Innovation
7. Securing the Energy Future for India
8. Accelerated Development of Transport Infrastructure
9. Rural Transformation and Sustained Growth of Agriculture
10. Managing Urbanization
11. Improved Access to Quality Education
12. Better Preventive and Curative Health Care
 CONCLUSION
 The vast majority of successes have been private‐sector successes,
whereas the vast majority of failures have been government failures,
mainly in service delivery.
 Wherever markets have become competitive and globalized, the
outcomes have been excellent. But many areas remain unreformed,
a few areas have been marked by backsliding, and those along with
new forms of regulation are combining to create what can be called
neo‐illiberalism.
 The weak quality of Indian institutions is increasingly a problem, and
without better institutions, India will be unable to sustain high growth.
 To reach high‐income status, India must become a much better
governed country that opens markets much further, improves
competitiveness, empowers citizens, vastly improves the quality of
government services and all other institutions, jails political and
business criminals quickly, and provides speedy redress for citizen
grievances. That is a long and difficult agenda.