FIVE YEAR PLANS

CONTENTS
SEVENTH FIVE YEAR PLAN (1985-89)
PERIOD BETWEEN 1989-1991
EIGHTH FIVE YEAR PLAN (1992-97)
NINTH FIVE YEAR PLAN (1997-2002)
TENTH FIVE YEAR PLAN (2002-07)
ELEVENTH FIVE YEAR PLAN (2007-12)
TWELFTH FIVE YEAR PLAN (2012-2017)
FAILURES OF PLANNING IN INDIA
CONCLUSION
SEVENTH FIVE YEAR PLAN
(1985-89)
Target Growth: 5.0%
 Actual Growth: 6.0%
The Plan aimed at accelerating food grain production, increasing employment
opportunities & raising productivity with focus on ‘food, work & productivity’.
Increasing productivity of small and large scale farmers.
Making India an Independent Economy
ACHIEVEMENT
The plan expected a growth in labor force of 39 million people .
Employment was expected to grow @4% p.a.
CONCLUSION
 The plan was very successful as the economy recorded 6% growth rate against
the targeted 5% with the decade of 80’s struggling out of the’ Hindu Rate of
Growth’.
PERIOD BETWEEN 1989-91
IN 1991, India faced a crisis in Foreign Exchange (forex)
reserves.
Their was a deficiency in fiscal budget indicating poor financial
health of the economy.
BOP crisis relate to BOP deficit revealed that borrowings from
ROW were consistently high.
Inflation was triggered by a rapid increase in money supply.
CONCLUSION
India’s free market reforms were launched that brought the
nearly bankrupt nation back from the edge.
It was the beginning of privatisation and liberalization in India.
EIGHTHFIVEYEARPLAN
Target Growth 5.6 %
(1992-97)
 Actual Growth 6.8%
Some of the main economic outcomes during eighth plan period were rapid economic
growth (highest annual growth rate so far – 6.8 %), high growth of agriculture and
allied sector, and manufacturing sector, growth in exports and imports, improvement
in trade and current account deficit.
Modernization of industries was a major highlight of the eighth plan.
Containing population growth, poverty reduction.
CONCLUSION
Worsening Balance of Payment position, rising debt burden , widening budget
deficits, recession in industry and inflation were the key issues during the launch of
the plan.
The plan undertook drastic policy measures to combat the bad economic situation and
to undertake an annual average growth of 5.6%
High growth rate was achieved even though the share of public sector in total
investment had declined considerably to about 34 %.
NINTH FIVE YEAR PLAN
(1997-2002)
Target Growth: 6.5%
 Actual Growth: 5.4%
Government focused on “Growth With Social Justice & Equality “ Ninth Plan
aimed to depend predominantly on the private sector – Indian as well as foreign
(FDI)
State was envisaged to increasingly play the role of facilitator & increasingly
involve itself with social sector viz education , health etc and infrastructure
where private sector participation was likely to be limited.
It assigned priority to agriculture & rural development with a view to generate
adequate productive employment and eradicate poverty
CONCLUSION
It was tool for solving the economic and social problems existing in the country.
The growth rate was 5.35%, a percentage point lower than the target GDP
growth of 6.5%.
TENTH FIVE YEAR PLAN
(1997-2002)
Target Growth 8 %
 Actual Growth 7.6 %
Recognizing that economic growth can’t be the only objective of
national plan, Tenth Plan had set ‘monitorable targets’ for few key
indicators (11) of development besides 8 % growth target.
The targets included reduction in gender gaps in literacy and wage rate,
reduction in Infant & maternal mortality rates, improvement in literacy,
access to potable drinking water cleaning of major polluted rivers, etc.
CONCLUSION
 States role in planning was to be increased with greater involvement of
Panchayati Raj Institutions.
State wise break up of targets for growth and social development sought
to achieve balanced development of all states
ELEVENTH FIVE YEAR PLAN
(2007-12)
Target Growth 9 %
 Actual Growth 8%
Eleventh Plan was aimed “Towards Faster & More Inclusive Growth
“after UPA rode back to power on the plank of helping Aam Aadmi
(common man).
On the fiscal front , the expansionary measures taken by the
government to counter the effect of global slowdown led to increase
in key indicators through 2009-10 with some moderation thereafter.
The issue of Price Stability remained resonating for more than half
of the Plan period. Inability to pass on burden on costlier imported
oil prices might have constrained the supply of investible funds in
the government’s hand causing the 11th Plan to perform at the levels
below its target.
The eleventh plan has the following objectives:

Income & Poverty

 Increase agricultural GDP growth rate to 4% p.a. to ensure a
broader spread of benefits.
 Create 70 million new work opportunities.
 Reduce educated unemployment to below 5%
 Reduce the headcount ratio of consumption poverty by 10% points.
 Accelerate GDP growth from 8% to 10% and then maintain at 10%
in the 12th plan in order to double per capita income by 2016-17.
 Education
Reduce dropout rates of children from elementary school
from 52.2% in 2003-04 to 20% by 2011-12.
Increase literacy rate for persons of age 7 years or above
to 85%.
Lower gender gap in literacy to 10% points.
Increase the percentage of each cohort going to higher
education from the present 10% to 15% by the end of
plan.
Develop minimum standards of educational attainment
in elementary school and by regular testing monitor
effectiveness of education to ensure quality.
 Health
Reduce infant mortality rate to 28 and maternal
mortality ratio to 1 per 1000 live births.
Reduce total fertility rate to 2.1
Provide clean drinking water for all by 2009 and
ensure that there are no slip-backs.
Reduce malnutrition among children of age group 0-3
to half its present level.
Reduce anemia among women and girls by 50% by the
end of the plan.
 Women and Children
Raise the sex ratio for age group 0-6 to 935 by 2011-12
and to 950 by 2016-17.
Ensure that at least 33% of the direct and indirect
beneficiaries of all government schemes are women
and girl children.
Ensure that all children enjoy a safe childhood,
without any compulsion to work.
 Infrastructure
Ensure electricity connection to all villages and BPL
households by 2009 and round the clock power.
Ensure all weather road connection to all habitation
with population 1000 and above by 2009, and ensure
coverage of all significant habitation by 2015.
Connect every village by telephone by November 2007
and provide broadband connectivity to all villages by
2012.
Provide homestead sites to all by 2012 and step up by the
pace of house construction for rural poor to cover all the
poor by 2016-17.
 Environment
Increase forest and tree cover by 5% points.
Attain WHO standards of air quality in all major cities
by 2011-12.
Treat all urban waste water by 2011-12 to clean river
waters.
Increase energy efficiency by 20% points by 2016-17.
TWELFTH FIVE YEAR PLAN
(2012-17)
‘It must be guided by a vision of India moving forward in a manner that would ensure a broad-based
improvement in the living standards of all the people through a growth process which is faster than in the
past, more inclusive, and also more environmentally sustainable.‘
OBJECTIVES
A growth rate of 9 percent
Focus on the agricultural sector and have an average growth of 4 percent during the Plan period
Restrain inflationary pressure
For the growth of GDP, ensure that the commercial energy supplies grow at a rate of 6.5-7 percent per year.
Develop a holistic water management policy
Suggest new legislation for the acquisition of land
Continue focus on health, education, and skill development
Large investments in the development of the infrastructure sector
Emphasis on the process of fiscal correction
Efficient use of available resources

CONCLUSION
The main conclusion that emerges from this analysis is that despite the slowdown in growth in the current
year, GDP growth target of 9.0 per cent for the Twelfth Plan is feasible from a macro-economic
perspective. However, while growth at the pace is feasible, it cannot be said to be a forgone outcome.
FAILURES OF PLANNING
Rise in prices
Increase in unemployment
Slow growth in production sector
Inequality in distribution of income and wealth
No increase in standard of living
Inadequate infrastructure
CONCLUSION
Lack of consistency
Foreign capital
Less impressive
Modest growth rate
Monsoon – A dominant factor
Objectives remain unfulfilled
THANK
YOU
BY – NITASHA
B.COM-2(C)
200803