FIVE YEAR

PLANS
Content:
1. INTRODUCTION
2. WHO MONITORS IT?
3. SHORT PERIOD OBJECTIVES
4. LONG PERIOD OBJECTIVES
5. FIRST FIVE YEAR PLAN(1951-56)
6. SECOND FIVE YEAR PLAN(1956-61)
7. INDUSTRIAL POLICY RESOLUTION (1956)
8. THIRD FIVE YEAR PLAN(1961-66)
9. THREE ANNUAL PLANS(1966-69)
10. FOURTH FIVE YEAR PLAN(1969-74)
11. GREEN REVOLUTION
12. FIFTH FIVE YEAR PLAN(1974-79)
13. ROLLING PLAN(1979-80)
14. SIXTH FIVE YEAR PLAN(1980-85)
15. FAILURES OF PLANNING IN INDIA
N
 when India gained independence, its economy was groveling in
dust.
 The British had left the Indian economy crippled and the fathers of
development formulated 5 years plan to develop the Indian
economy.
 The planning commission was set up in march 1950 by a resolution
of government of India.
 The main objective of government to promote a rapid rise in the
standard of living of the people by
- efficient exploitation of the resources of the country.
-increasing production
-offering opportunities ton all for employment in the service of the
community.
WHO MONITORS IT?
 the five years plan in India is framed, executed and
monitored by the planning commission of India.
 Set up in march,1950.

 The draft of the five year plan was published in July

1951 and it was approved in December 1951.
 With the prime minister as the ex officio chairman.

 The commission has a nominated deputy chairman, who

has rank of a cabinet minister.
 SHORT- TERM
OBJECTIVES
  Increase in national income or per-capita income
 Achieving full employment,

 Social justice and equitable distribution,

 Poverty alleviation,

 Self-sufficiency and modernization, etc.

 Achieving all these objectives would be termed as

'Growth with Social Justice.
LONG TERM OBJECTIVES
Economic Growth
 Achievement of economic growth is the main motive of planning. Economic growth can be measured in
terms of rate of growth of GDP or GNP.
Full Employment
 Rampant unemployment is a serious issue in India. Provision of full employment is a long-term objective of
planning in India. For the first time Sixth five year plan accorded the priority status for employment.
Equity and Social Justice
 The fruits of economic growth should benefit large sections of the society. Development of few sections of
the society will lead to the inequality in society. Indian planning should aim at reducing such inequalities..
Eradication of Poverty
 Eradication of poverty is one of the long-term objectives of the planning in India. Fifth and Sixth five year
plans primarily focussed on eradication of the poverty problem in India.
Modernisation
 Modernisation means updation of technical know-how and adoption of new technologies for betterment of
the society. Productivity of the economy can be raised many-fold with the use of innovative and modern
technology. Green Revolution and IT revolution are best examples of how technology can transform a
country. Modernisation also includes issues like empowerment of women.
Self-sufficiency
 Self-sufficiency means dependence on domestically produced goods, particularly foodgrains. The basic idea
was not to expose India’s fragile economy to political diktats of rest of the world as it happened in 1965
when U.S.A., threatened to stop exports of foodgrains to India unless the latter stopped the then war with
Pakistan.
FIRST FIVE YEAR
PLAN
(1951-56)
 Target Growth: 2.1%
 Actual Growth: 3.6%

 It was based on Harrod Domar Modal

 The main focus was to develop Agriculture

 Another aim was to solve the issues regarding after partition

situation like influx of refugees , severe food shortage and
mounting inflation etc.
ACHEIVEMENTS:
 It was successful plan primarily because of good harvests in
the last two year plan.
 Objectives of rehabilitation of refugees , food self

sufficiency ,control of prices were also achieved.

SECOND FIVE YEAR PLAN
(1956-61)
 Target Growth : 4.5%
 Actual Growth : 4.3%

 The simple aggregative Harrod Domar Modal was again used for overall projection.

 The plan focused on rapid industrialization –heavy and basic industries.

 Advised to make huge imports through foreign loans.

 The Industrial Policy ,1956 was based on establishment of Socialistic Pattern Of

Society as the goal economic policy.
ACHIEVEMENT:
 Coal production was increased .

 Railways line were added in the North-East

 Hydro electric Power plants were formed.

 TATA Institute of Fundamental Research was established.

CONCLUSION:
 It was moderately successful as price rise was also seen leading to decline in earlier
plan.
THIRD FIVE YEAR PLAN
(1961-66)
 Target Growth : 5.6%
 Actual Growth : 2.8%
 It was felt that Indian Economy has entered a take-off stage , therefore its aim was to make India Self-Reliant and
Self Generating Economy.
 Based on experience of first two plans Agriculture was given top priority to support the Export and Industry.
 The Sino- Indian war led to inflation and priorities was shifted to Price Stabalisation.
 Minimising the rate of Unemployment.
 Increasing the National Income by 5% p.a.

ACHEIVEMENTS :
 The constructions of dams continued, many cement and fertilisers plants were built.
 Punjab begun producing an abundance of Wheat.
 Many primary schools were started in Rural areas.

CONCLUSION:
 The plan was thorough failure in reaching the targets due to unforeseen events.
 Due to conflicts the approach during the later phase was shifted from development to Defence
THREE ANNUAL PLANS (1966-69)
DESCRIBED AS HOLIDAY PLAN
 The failure the Third Plan that of devaluation of rupee along
with inflationary recession led to postponement of Fourth FYP.
 Three Annual Plans were drawn during this intervening period.

 The main reason for Plan Holidays were War,Lack of Resources

and increase in Inflation
 During these plans a whole new agricultural strategy was
implemented. It involving wide-spread distribution of high-
yielding varieties of seeds, extensive use of fertilizers,
exploitation of irrigation potential and soil conservation.
CONCLUSION:
 During the Annual Plans, the economy absorbed the shocks
generated during the Third Plan.
 It paved the path for the planned growth ahead.
FOURTH FIVE YEAR PLAN
(1969-74)
 Target Growth: 5.7%
 Actual Growth: 3.3%

 India had to reform and restructure its expenditure agenda due to two attacks on
India in year 1962 and 1965.
 Main emphasis was on growth rate of agriculture to enable other sectors to move
forward . First two years of the plan saw record production
 Implementation of Family Planning Programmes were amongst major targets of
the Plan.
ACHIEVEMENTS
 The Indira Gandhi government nationalized 14 major Indian Banks
 Green Revolution in India advanced agriculture.

 Food Grains production increased to bring about self sufficiency in production.

CONCLUSION:
 Influx of Bangladeshi refugees before and after 1971 Indo-Pak war was an
important issue along with price situation deteriorating to crisis proportions and
the plan is considered as big failure
GREEN REVOLUTION
FIFTH FIVE YEAR PLAN
(1974-79)
 Target Growth: 4.4%
 Actual Growth: 4.8%

 The final Draft of fifth plan was prepared and launched by D.P. Dhar in the backdrop of economic

crisis arising out of run-away inflation fuelled by hike in oil prices and failure of the Govt. takeover
of the wholesale trade in wheat.
 It proposed to achieve two main objectives: 'removal of poverty' (Garibi Hatao) and 'attainment of
self reliance‘
 Promotion of high rate of growth, better distribution of income and significant growth in the
domestic rate of savings were seen as key instruments
ACHIEVEMENTS:
 Increase in supply of Food Grains
 Export of Minerals and Oil Reserves increased Foreign Exchange

 Enhanced import substitution.

CONCLUSION:
 Due to high inflation, cost calculations for the Plan proved to be completely wrong and the original
public sector outlay had to be revised upwards.
 After promulgation of emergency in 1975, the emphasis shifted to the implementation of Prime
Ministers 20 Point Programme.
 FYP was relegated to the background and when Janta Party came to power in 1978, the Plan was
terminated.
ROLLING PLAN (1978-
80)
 There were 2 Sixth five year Plans. Janta Govt. put
forward a plan for 1978- 1983 emphasizing on
employment, in contrast to Nehru Model which the
Government criticized for concentration of power,
widening inequality & for mounting poverty
 However, the government lasted for only 2 years.
Congress Govt. returned to power in 1980
 launched a different plan aimed at directly attacking on
the problem of poverty by creating conditions of an
expanding economy
SIXTH FIVE YEAR PLAN
(1980-85)
 Target Growth: 5.2%
 Actual Growth: 5.7%

 The Plan focused on Increase in national income, modernization of

technology, ensuring continuous decrease in poverty and
unemployment
 through schemes for transferring skills(TRYSEM) and seets
(IRDP) and providing slack season employment (NREP),
controlling population explosion etc.
CONCLUSION:
 Broadly , the sixth Plan could be taken as a success as most of the
target were realized even though during the last year (1984-85)
 Many parts of the country faced severe famine conditions and
agricultural output was less than the record output of previous year.
THANK
YOU
BY - NEHA
200906