PLANNING IN INDIA

WHAT IS PLANNING

Planning is a series of steps that are adopted to

achieve a goal.
Why there was a need of planning in India ?
Large Population
Low per capita income
Inequality of distribution
Inefficient production

OBJECTIVES OF INDIAN
PLANNING

To
To
To
To
To

achieve total employment

maximize the Per capita income
enhance rapid industrialization
achieve self sufficiency
reduce inequalities of income

WHAT ARE THE BASIC

FEATURES OF INDIAN
PLANNING

MIXED ECONOMY:This is the co-existence of both the

Public (government) and Private sector.
BALANCED GROWTH STRATEGY:Both agriculture
and industrial infrastructure are to be strengthened.
MINIMIZING FOREIGN ASSISTANCE: this is in terms
of both aid and transfer of technology.

WHAT INDIA DID?

India established Planning Commission and National

Development Council.
Planning Commission:
In the year 1950 Planning Commission was set up.
Planning Commission was set up on the recommendation
of Planning Advisory Board.
Planning Commission was established through Cabinet
Resolution.
What is cabinet resolution? This is a decision taken by
the Cabinet.
The Prime Minister is the ex-officio chairman of the
Planning Commission.
The Planning Commission prepares the draft of the five
year plans.

NATIONAL DEVELOPMENT
COUNCIL (NDC)

NDC was set up in the year 1952.

NDC was set up on the recommendation of
Planning Commission.
The Prime Minister is the Chairman of NDC.
The NDC is the final approval body for the five
year plans.

FIRST PLAN
(1951 - 56)
Based onHarrod Domar Model.
Emphasized on Agriculture, Price Stability, Power and
Transport.
It was more than a success, because of good harvests in the last
two Years.
But during the first plan limited attention was paid to the social
objectives.
The industrial sector was neglected.
Locomotive factory (Chittaranjan), Fertilizer factory (Sindri),
Indian Telephone Industry (Bangalore) were set up during
1stplan.
Target growth rate: 2.1%
Achieved growth rate: 3.6%

SECOND PLAN
(1956 - 61)
TARGET GROWTH: 4.5%
ACTUAL GROWTH: 4.27%

The main objectives of the second plan were

Rapid industrialization
Rapid increase in the National income
Massive expansion of the employment opportunities
Reduction in inequalities of income and wealth
Steel plants at (Bhilai(MP), Rourkela (Odisha) and Durgapur
(West Bengal) were set up.
Heavy engineering plant Ranchi, Lignite Corporation
(Neyveli), Integral coach factory at Perumbudur were set up.
The targets were not achieved but a firm foundation for the
industrialization was laid in the country.
As the 2 ndplan gave priority to the industry and neglected the
agriculture sector, it led to the Balance of payments problem.

THIRD PLAN
(1961 - 66)
|TARGET GROWTH: 5.6%
ACTUAL GROWTH: 2.84%

Emphasis on basic industries continued but

agriculture was also given the priority.
The Performance during this period was very
poor.
The reasons for poor performance can be
attributed to
Chinese aggression in the year 1962
Indo-Pak war in the year 1965
Failure of monsoons, particularly during 196566.

ANNUAL PLANS: (1966-69):

The annual plan is alsocalled plan holiday.

There were 3 annual plans
April 1, 1966 to March 31, 1967
April 1, 1967 to March 31, 1968
April 1, 1968 to March 31, 1969
The planning process during the 3 rdplan was affected seriously because
of wars and famine.
Hence the 5 year plan was given up till the economic normalcy is
restored.
Green revolution was initiated in the country.
HYV (High Yielding Variety) seeds were introduced.
As the supply of food grains increased the food prices came down and
the economic stability was restored.
Nationalization of banks was a major step during this period.

FOURTH PLAN
(1969 - 74)
TARGET GROWTH: 5.7%
ACTUAL GROWTH: 3.30%

Emphasis was on growth with justice.

Agriculture and allied sectors were given
priority.
The achievements fell short of the targets.
The 4thplan was not a success.
The reasons for the poor performance can be
Instability of the prices
Indo-Pak war in the year 1971
Drought in the year 1972

FIFTH PLAN
(1974-79)
TARGET GROWTH: 4.4%
ACTUAL GROWTH: 3.8

In the year 1977 the Janata Party came to the power.

The 5thplan was terminated on March 31, 1978 ahead of the
schedule.
The Janata Party introduced rolling plan.
Poverty eradication was given the highest priority and
Attainment of self reliance was given importance.
A National level programme of minimum needs was introduced.
The Minimum needs programme covered elementary education,
safe drinking water, health care, shelter for landless, nutrition,
rural roads, rural electrification, slum development.
Janata party government terminated this programme.
PDS (Public Distribution System) was introduced during this
period.
There was a severe inflation during this period and led to the
bad performance of the plan.

ROLLING PLAN (APRIL 1,

1978 MARCH 31, 1980):

The 5thplan was terminated in the year 1978.

This rolling plan gave priority to the rural
development.
Note: In Rolling Plan the plan is revised at the
end of every year for the next 4 years along
with the formulation of a plan for the 5 thyear.

SIXTH PLAN
(1980 - 85)
TARGET GROWTH: 5.2%
ACTUAL GROWTH: 5.66%

Energy was given the highest priority with

27.9%.
Agriculture was given the second priority.
The percentage of the people from BPL (Below
Poverty Line) came down.
There was a positive performance in the oil
sector.
The food grain production also increased
considerably during this plan.
The 6thplan was a success.

SEVENTH PLAN
(1985 - 90)
TARGET GROWTH: 5.0%
ACTUAL GROWTH: 6.01%

Priority was given to the productive

employment and energy.
Agriculture was given the next priority.
Industrial sickness occurred in small sector.
The 7thplan was a success as it exceeded the
growth rate of 5.0 percent and reached 6.01%
percent.
A record level of food production of 172 million
tonnes was achieved.

EIGHTH PLAN
(1992 - 97)
ANNUAL PLAN OR PLAN HOLIDAY
1990 -92 was the plan holiday.
Worsening Balance of Payment position and inflation during 199091 were the key issues during the launch of the plan.
Human resources was given the top priority and called human face
element of adjustment.
Alleviating (removal) poverty and removing Unemployment was
stressed.
Since the Human development is not possible without economic
growth priority was given to energy, transport and communication.
The GDP (Gross Domestic Rate) target was 5.6 percent, but,
achieved 6.54 percent.

NINTH PLAN
(1997- 2002)
TARGET GROWTH: 6.5%
ACTUAL GROWTH: 5.35%

Growth with social justice and equality was given the

priority.
Agriculture and rural development were given
importance.
During this period the Planning Commission suggested
that the subsidies should not exceed Rs. 72, 800 crore in
the 9thplan period.
The plan was not a success.
The poor state of infrastructure is the most pressing
constraint for growth.
It was developed in the context of four important
dimensions: Quality of life, generation of productive
employment, regional balance and self-reliance.

TENTH PLAN
(2002 - 2007)
Tenth five year planfocussed more on services and IT sectorand was
able to achieve expected growth rate. But the growth rate in the
agriculture sector dropped down.
It focused on doubling the per capita income in 10 years and reduction of
BPL from 26% to 21% by 2007.
The Tenth Plan focused on ways and means of correcting the regional
imbalance.
Currently,eight States, with poor health and demographic indices,
constitute 44.7% of India's population.Special efforts were made
during the Tenth Plan to enable these Statesto fully achieve their
potential.
The growth strategy of the Tenth Plan seeked to ensure the rapid growth
of those sectors which are most likely to create high quality employment
opportunities. These included such sectors as construction, real estate,
and housing, transport, Small Scale Industries, modern retailing,
entertainment, IT-enabled services, etc.

ELEVENTH FIVE YEAR PLAN

(2007-12):

The theme is towards faster and more inclusive growth.

The target is to achieve 9% growth.
Highest priority was given to education.
Rural development, agriculture, irrigation and health were
given priority.
Accordingly government decided to set up 30 new central
universities, 8 new IITs, 7 IIMs by 2012.
PRIs (Panchayati Raj Institutions) to be given priority as
India is the only country which has so many women elected
representatives.

TWELFTH FIVE YEAR PLAN

(APRIL 1, 2012 MARCH 31,
2017):

The theme of the 12 thplan is Faster, sustainable and more

inclusive growth.
In August 2011 the chairman of PC announced that the Health
care, Education, Skill development, Environment, Natural
resources, Infrastructure development are the highest priority
in this plan.
The proposed target is 9 (later reduced to 8.2 and finally to 8)
percent growth rate.
The NDC approved the 12 thplan on December 27, 2012
NDC approved to achieve growth rate of 8 percent.
To generate 50 million jobs and to increase investment in
infrastructure

NITI AAYOG

National Institution for Transforming Indiais

aGovernment of Indiapolicy established by the
PRIME MINISTERNarendra Modigovernment to
replace thePlanning Commission. The stated aim
for NITI Aayog's creation is to foster involvement
and participation in the economic policy-making
process by theState Governments of India. The
Union Government of India announced the
formation of NITI Aayog on 1 January 2015, and the
first meeting was held on 8 February 2015. The
Prime Ministerserves as theEx-officiochairman.

THANK YOU!