Department of Management Studies

Presented By:
Geetanjali Chaturvedi Garima Singhal Harish Gupta

Presentation Structure
What is Planning? What does planning do? Nutshell view of the plans Objectives of Plans Objectives of individual plans Strategies Involved Financing of plans

What is Planning? Planning is a set of choices or decisions regarding allocation of alternative resources available according to a well defined set of goals and objectives by some central authority over a specified period of time .

What does planning do?     Brings economic growth and development Increase in capital formation Social justice Price stability .

The Planning Commission has been entrusted with the responsibility of the creation.Five-year plans of India For the smooth functioning of any economy. planning plays an important role. India's five year plans are also supervised by the Planning commission . development and execution of India's five year plans.

Nutshell view of the plans PLAN 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th PERIOD 1951-1956 1956-1961 1961-1966 1969-1974 1974-1979 1980-1985 1985-1990 1992-1997 1997-2002 2002-2007 2007-2012 HIGHLIGHTS 5 IITs came into existence by the end of the plan Focus on heavy industry Sino-Indian war shifted priority to price stability Self reliance Stress on employment and poverty Janata government plan Congress party came back to power Modernization of industries Price stability Development more social Inclusive growth .

Objectives of Plans  Growth of economy .

Objectives of Plans«   Modernization industries contribution larger in proportion  production of large variety of goods  advancement of technology  financial institutions Self reliance elimination of dependence on foreign aid  elimination of dependence on imports .

Objectives of Plans«  Social Justice improving living standards of weaker  reduction in inequalities of asset distribution  reduction in regional/state inequalities .

Objectives of individual plans   First plan ±  Improve living standards of people  Fuller utilization of idle manpower  Change in occupational pattern  Reorient the educational system Second plan ±  Increase in national income by about 25 per cent over the five years  Enlarge employment opportunities  Enlargement of heavy industries .

Objectives of individual plans«   Third plan ±  Increase in NI  Increase agriculture productions  Expansion of basic industries  Expansion of employment  Even distribution of economic power Fourth plan ±  Reform government expenditures  Facilitate growth in exports .

Objectives of individual plans«   Fifth plan ±  Employment  Poverty alleviation Sixth plan ±  Rapid industrial development  Expansion of tourism  Beginning of economic liberalization  Expansion of family planning .

Objectives of individual plans«   Seventh plan ±  Growth in food grain production  Increase employment opportunities  Raise productivity Eighth plan ±  Modernization of industries  Poverty reduction  Strengthening the infrastructure  Human resource development .

Objectives of individual plans   Ninth plan ±  Priority to agriculture development  Providing basic services  Empowerment of women and socially disadvantaged groups Tenth plan ±  Reduction of poverty ratio  School education  Increase in literacy rates  Villages with basic amenities .

Objectives of individual plans  Eleventh plan ±  Accelerate gdp growth rate  Reduce drop out rates in elementary schooling  Better environment  Good infrastructure with proper connectivity of roads .

Strategies Involved    Mahalanobis Model ±  determine the optimal allocation of investment between productive sectors in order to maximize long-run economic growth Wage good Model ±  Resources not available for consumer goods  Cottage industries development Industrial policy Model ±  reduced the industrial licensing requirements  removed restrictions on investment and expansion .

duties. tolls and fees Productive Employment±  Increase of amenities to lower farmers  Rural development more effective . collect and appropriate taxes.Strategies Involved«    Price Policy±  Constitutes fiscal and monetary components Panchayati Raj±  Preparation of plan for economic development and social justice  To levy.

Strategies Involved«    Foreign trade Policy±  derive the maximum advantage from world markets  opening up of the economy to international competition Equity and social justice strategy±  Agriculture development is the core element Improved efficiency capacity utilization±  Emphasis on completion of partial or ongoing projects .

Financing of Plans Finances are contributed from different sources namely     Balance from current revenue Surplus of public enterprises Capital receipts Deficit financing External resources .

3 12.1 53.7 Total 1.672 8.7 9.6 22.9 12.6 5.524 8.9 1.2 12.160 40.6 37.712 1.6 19.6 Capital receipts 35.0 30.4 34.0 41.Financing of Plans« Plan 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th Current revenue 32.8 6.1 15.92.8 3.6 14.570 3.4 13.78.4 -0.821 1.59.7 63.3 Public enterprise 5.5 59.3 16.7 0 External resources 9.8 7.960 4.577 16.300 .6 40.80.1 1.5 28.200 15.2 5.5 30.5 6.5 22.8 2.5 41.0 20.3 8.5 39.10.8 25.8 8.7 28.0 24.0 -10.4 Deficit financing 17.8 16.4 56.1 8.

Financing of Plans«  Balance from current revenues±  Key significant source  Involves no liabilities  Performance highly unsatisfactory Surpluses of public enterprises±  Low contributions  From this angle. planning has been a failure  .

loans etc  Fruitful if use kept in limits and resources invested in productive enterprise  Not the case though External resources±  Contributed a lot in augmenting domestic  Recently country in heavy debt due to this . provident funds. small savings.Financing of Plans«   Capital receipts±  Comprises of market borrowing.

Financing of Plans«  Deficit financing±  Share of deficit financing in total has been considerable  It can do some good if in small doses  Discontinued from April 1997 .

Thank You!! .