THIRD FIVE YEAR PLAN

1961 - 1966

OBJECTIVES

An increase in national income of more than 5% annually

Agriculture was given top priority to support self
sufficiency
Expansion of basic industries, the aim being to meet the
requirements arising from increased industrialisation in
the previous two 5 year plans
Utilising the countrys manpower to reduce
unemployment
Reducing wealth and income disparities
First phase of 15 year long term growth

GROWTH MODEL

Demand side growth

Rapid growth with self reliance
Agriculture
Small and Medium scale industries
Generate employment
Economic benefits to more people

POLICY CHANGES

Shift of focus from heavy industries to agriculture and

small scale industries
States were given more responsibilities
Panchayat Raj elections for Grass root level democracy
State Transportation, electricity and education boards
established
Construction of Dams continued

SIGNIFICANT CHANGES IN THE ECONOMICAL

ENVIRONMENT

China India War of 1962

Pakistan India war of 1965
Wartime efforts
Drought in 1965
High Inflation and efforts on price stabilization
Start of Green revolution in 1965

CHALLENGES AND ACHIEVEMENTS

Wars with China and Pakistan

Drought
Plan is a miserable failure
Plan Target met only in Transport, communication and
service sectors only
Agriculture output fell from 82 MT to 72 MT

CHALLENGES AND ACHIEVEMENTS

(CONTINUED)

Industrial output fell

Inflation of food and consumer article prices
Forced to declare Plan Holidays
Construction of Dams, Cement and Fertilizer plants
Punjab became a wheat basket
Green revolution started