FIVE YEAR PLAN - MEERA MODY

FIVE YEAR PLAN :



The five year plans determine the development objectives and strategies & set target for economy as a whole and for different sectors and subsectors.. The plans also indicate the scope /roles of public and private sectors..

PLANNING Commission :
 

The planning commission plays an important role in formulation of Five Year Plans. Planning Commission was set up in 1950 by resolution of GOI, with the following functions.  To make an assessment of the material, capital and human resource of the country and investigate the deficiency in relation to the nations requirements.  To formulate a plan for the most effective and balanced utilization of the countrys resources

National Development Council :



  

The most important committee working in association with P.C is NDC. It is composed of PM as a president CM of the state and union territories Members of P.C

Functions of NDC :


To prescribe guidelines for the formulation of the National Plan To consider the N.P as formulated by P.C. To review the working of plan from time to time and to recommend measures necessary to achieve the aim and target set out in national Plan.

Formulation of Plan :


The first stage involves the examination of the state of economy appraisal of past trends in the production rate of growth in relation to long term view of the economy..

The second stage P.C. forms the group having specialist in respective fields who make the assumptions to be made in the formulation of the plan and indicate the targets to be achieved Preliminary document followed by Draft Plan is prepared and is discussed in detail by the Cabinet and is placed before NDCwhich will be then made public for country wide debate.

Finally the suggestions from MPs and public will be considered and final draft mentioning the Objective, policies and programs for the plan is prepared by PC and submitted to NDC.. With modification recommended by NDC , the document is presented to parliament for final approval.

Objectives of the Plan :



Proper utilization of national resources in accordance with national priorities & fast development of the economy. Alleviation and ultimate removal of unemployment and poverty. Improvement in the standard of living in general.

   

Rapid increase in the income, generation of employment, Social justice Self reliance etc.

REVIEW OF PLAN

FIRST FIVE YEAR PLAN 1951-1956



Formulated against the backdrop of second world war and partition of country. It accorded high priority to agriculture, irrigation and power projects. 45% of resources was allocated to agriculture.

SECOND FIVE YEAR PLAN1956-1961



Formulated in the atmosphere of economic stability, agriculture was given a complimentary role and emphasis was on industrial sector, especially heavy goods industries. Agriculture programs were aimed at meeting the raw material requirements of the industry besides meeting the food needs of the country

THIRD FIVE YEAR PLAN 1961-1966



Third plan recognized the importance of Export promotion. It was found that limiting factor in economic growth was the growth in agriculture production. Once again agriculture was given top priority. Power generation was considered an important factor in ensuring rapid growth of industrial sector.

PLAN HOLIDAY FOR 3 YEARS



The failure of third plan generated a wave of pessimism. Instead of the fourth plan, three annual plans were introduced. The economy was in grip of recession and had to struggle another drought in 1966-67.

FOURTH FIVE YEAR PLAN 1969-70 TO 1973-74



It was realized that GDP growth and high rate of capital accumulation alone may not help in improving the standard of living. Emphasis shifted towards providing necessary consumption benefits to the less privileged and weaker sections of society through employment and education.

FIFTH FIVE YEAR PLAN 1974-75 TO 1978-79



Direct attack on poverty was necessary for rapid eradication of poverty. Aimed at improving the quality of life of downtrodden section of the economy. Several new economic and non-economic variables such as nutritional requirements, health and family planning, were incorporated in the planning process.

SIXTH FIVE YEAR PLAN 1978-79 TO 1982-83



A significant step up in the rate of growth of the economy, strengthening the redistributive bias of the public policies & services in favor of poor were among the major objectives of the sixth plan.

SEVENTH FIVE YEAR PLAN 1985-86 TO 1989-90

 

Seventh plan was on food, productivity and work Policies were aimed at rapid growth in food grain production, higher employment levels, etc. Jawahar Rozgar Yojana was introduced.

EIGHTH FIVE YEAR PLAN 1992-93 TO 1996-97



It was launched immediately after a severe balance of payment crisis. Several structural adjustment policies were introduced such as:
   

Devaluation in the value of rupee. Dismantling of licensing requirements. Reducing trade barriers. Reforms in financial sector and tax systems.

NINTH FIVE YEAR PLAN 1997-98 TO 2001-02



The key task was to improve the living conditions of the poor and provide them with adequate employment opportunities. Serious efforts were made to raise the level of agricultural and rural incomes and target programs at small, marginal farmers and landless laborers.

TENTH FIVE YEAR PLAN 2002-2007



Formulated keeping in line with the Prime Ministers vision of doubling per capita income in the country and creating 100 million employment opportunities in the next ten years. Focused on Human welfare include not only adequate level of food but basic services such as education , health, drinking water and sanitation

ELEVENTH FIVE YEAR PLAN-20072012



The title of the approach to the 11th Five Year Plan of India is TOWARDS FASTER AND MORE INCLUSIVE GROWTH.


Despite the encouraging growth in recent years, economic growth has failed to be sufficiently inclusive. Emphasizes the need to restructure policies to achieve a new vision based on faster, more broad-based and inclusive growth.

VISION OF 11TH FIVE YEAR PLAN



Aim at putting the economy on a sustainable growth trajectory with a growth rate of approximately 10 per cent by the end of the plan period. Rapid growth is an essential part.


To raise the incomes of the mass of our population and to bring about a general improvement in living conditions. To generate resources needed to provide basic services to all

The 11th Plan aims at accelerating and broad basing the growth and reducing regional disparities across communities by ensuring access to basic physical infrastructure as well as health and education services to all. Better health and education necessary for sustained long term growth

GROWTH TARGET FOR 11th PLAN



Target growth rate for 11th plan is 9 % per annum, which is feasible and not impossible. Substantial resources to be directed to setting right the neglect of rural infrastructure and provide education and basic services to all.

INDIAS GROWTH PERFORMANCE DURING PLANS.

SR.NO TARGET
First plan(1951-56) Second Plan(1956-1961) Third Plan(1961-1966) Fourth Plan(1969-74) Fifth Plan(1975-1979) Sixth Plan(1980-1985) Seventh Plan(1986-1990) Eighth Plan(1992-97) Ninth Plan(1998-2002) Tenth Plan(2003-2007) Eleventh Plan(2008-2012) 2.1 4.5 5.6 5.7 4.4 5.2 5.0 5.6 6.5 8.0 9

ACTUAL
3.60 4.21 2.72 2.05 4.83 5.54 6.02 6.68 5.5 7.2

1 2 3 4 5 6 7 8 9 10 11

Policies For Faster & More Inclusive Growth

Investment requirements (domestic investment from 27.8% to 35.1%)  Policies towards Agriculture  Promoting access to health & Education  Developing infrastructure  Rural infrastructure  Special focus on weaker sections.