5TH FIVE YEAR PLAN

TIME PERIOD- 1974-1979

• The final draft of 5th-year plan was prepared and launched by D.P DHAR.

• Primary objectives-
REMOVAL OF POVERTY (GARIBI HATAO- the slogan was given by Indira
Gandhi)
ATTAINTMENT OF SELF RELIANCE – so as to minimize foreign investments

• BUDGET OUTLAY- RS. 53,410 cr

• TARGET GROWTH RATE- 4.4%
• ACTUAL GROWTH RATE-4.8%

3 MODELS WERE USED

FOR 5TH FIVE YEAR
PLAN

INPUT-OUTPUT MODEL
MACRO MODEL CONSUMPTION MODEL
used for estimating
Used primarily for used for deriving
sectoral output levels of
estimating investment. sectoral consumption.
imports and exports.
 OTHER OBJECTIVES:

- To attain 5.5% overall rate of growth in GDP.

- Expansion of productive employment and fuller utilization of existing skills and

equipment.

-National programmes were launched for minimum needs.

-During this period, the government emphasised on additional production of 125

million tons of food.

-Government too emphasised on basic and key industries for producing goods for
mass consumption.

-To promote import substitution(Import substitution industrialization is a trade

and economic policy that advocates replacing imports with domestic production.
It is based on the premise that a country should attempt to reduce its foreign
dependency through the local production of industrialized products).

- To adopt institutional, fiscal and other measures to reduce social, economic and
regional inequalities.

• 2 IMPORTANT SCHEMES WERE LAUNCHED-

- 20 points programme- this programme covered various social, economic aspects

like poverty, employment, education, health, agriculture etc.The scheme was
launched by Indira Gandhi on 1st July 1975. The main provisions were the equal
division of wealth, minimum wages for workers etc.
-Minimum needs programme- it was launched to elevate poverty and increase
the living standards of downtrodden people.
 The time period between 1978-1980 was called ROLLING PLAN(In contrast to Nehru
Model, Janta Government put forward a plan of more employment emphasis. It
criticized many prevailed plans and took inequalities and poverty as real social
issues. However, its tenure ended after 2 years and the new government came up
with a new five-year plan).
• As, during this plan,In 1978 Janata government came into power and terminated
the 5th five-year plan with the objective to increase employment.But,soon in 1980
congress again won the elections and terminated their plan and relaunched five year
plan.
This was the time,where we saw that how political instability impacts economy.

ACHIEVEMENTS DURING 5TH FIVE YEAR PLAN

- Decentralization in income happened due to the successful implementation of 20

points programme and minimum needs programme.
-Village and small industries registered a growth rate of 6.8% per annum.
-The annual rate of growth of agriculture production grew at rate of 4.5% against its
target rate of 3.3%.
-The gross irrigated areas was recorded 48.41 million hectares.
- Moreover, there was significant growth in domestic savings.