WHAT IS PLAN ?

A plan spells out how the resources of a nation should be put to use.

It should have some general goals as well as specific objectives which are to be achieved with in a specified period of time.

In India plans are of five year duration and are called FIVE YEAR PLAN.

OBJECTIVES OF PLANNING –

Economic growth.

Self- Reliance.

Removal of Unemployment.

Reduction in income inequalities.

Elimination of poverty.

PLANNING COMMISSION

The PLANNING COMMISSION is an institution in the Government of India, which formulates India’s Five year plan.

Planning commission was set up on 15 MARCH 1950, with Prime minister JAWAHARLAL NEHRU as the chairman.

FIRST FIVE YEAR PLAN

(1951-1956)• Presented by –

JAWAHARLAL NEHRU

•Total outlay - Rs. 2069 Crores

• Target growth – 2.1%growth in gross domestic product.

7 AREAS COVERED

•Agriculture as well as community development.

• Energy as well as irrigation.

• Communication and transportation.

• Land rehabilitation.

• Social services.

• Miscellaneous.

• Industrial sector.

ACHIEVEMENTS -

HYDROELECTRIC POWER PROJECTS.

More railway lines were added.

ATOMIC ENERGY COMMISSION was formed.

5 STEEL plants at BHILAI, DURGAPUR and ROURKILA were established.

SECOND FIVE YEAR PLAN(1956- 1961)

Total outlay – RS. 4800 Crore.

Followed by – MAHALANOBIS MODEL.

Target growth – To inc. NATIONAL INCOME by 25%.

CONCERN AREAS -

To make country more industrialized.

Focus was mainly on heavy industries.

To increase employment opportunities.

To determine optimum allocation of investment between productive sectors.

Growth rate in GDP - 3.6%

National income increase - 18%

Per capita income increase - 11%

Per capita consumption inc. – 9%

Growth rate in NDP - 15%

2 Irrigation projects BHAKRA and HIRAKUND projects initiated.

ACHIEVEMENTS

This plan got a MODERNATE SUCCESS, due to-

UNFAVOURABLE MONSOON in 1957-58, 1959-60.

SUIZ CRISES which blocked international trading and increase the commodity prices.

High TARIFFS.

THIRD FIVE YEAR PLAN

(1961-1966)

OBJECTIVES

More stress to agriculture. 1. Subsidies.

2 Sufficient help.

To increase the national income by 5% per year.

To provide employment to people.

To establish EQUITY among all the people of country.

To achieve 4.5% growth rate of GDP

ACHIEVEMENTS Decentralization.

Organization formed – 1. Panchayats

2. zila parishads

Laid emphasis on- 1. Oil conservation

2. Irrigation

3. A forestation

4. Dry farming

Many fertilizers and cement plants were built.

Green revolution.

PROBLEMS FACED SINO INDIAN WAR, India witnessed

increase in price of products, the resulting INFLATION.

FOURTH FIVE YEAR PLAN

(1969- 1974)

Total outlay-

Rs. 24880 Crores.

OBJECTIVES To achieve stability and progress

towards SELF –RELIANCE.

To achieve an overall rate of growth 5.7 percent annually.

To raise exports at the rate of 7 percent annually.

To reform and restructure government expenditure agenda( DEFENSE became one major expense)

ACHIEVEMENTS 14 Banks were NATIONALIZED.

Food grain production increase.

Served as a stepping stone for economic growth.

great advancement has been made with regard to India’s national income.

Considered as one of the EMERGING POWER.

PROBLEMS

A gap was created between the people of rural areas and those of urban areas.

Due to RECESSION, FAMINE and DROUGHT, India did not pay much heed to long term goals.

FIFTH FIVE YEAR PLAN

(1974-1979)

Total outlay –Rs. 53410 Crores.

OBJECTIVES

5.5 Percent overall rate of growth in gross domestic objectives.

Expansion of productive employment and fuller utilization of existing skills and equipment.

A National programme for minimum needs and extended programmes of social welfare.

To reduce social, regional and economic disparities.

To enhance agricultural productivity.

To develop labor intensive technological improvement.

Production support policies in the COTTAGE INDUSTRY SECTOR.

ACHIEVEMENTS Food grain production was above

118 million tons due to the improvement of INFRASTRUCTUAL FACILITIES.

BOMBAY HIGH had shot up the commercial production of oil in india.

The INDIAN NATIONAL HIGHWAY SYSTEM was introduced for the first time.

PROBLEMS FACED – The INTERNATIONAL ECONOMY

was in trouble.

FOOD, OIL and FERTILIZERS where prices Sky – Rocketed.

Several Inflationary pressures.

(Electricity supply act was enacted in 1975)

SIXTH FIVE YEAR PLAN

(1980-1985) Total outlay – Rs. 158710 Crores.

OBJECTIVES To initiate FAMILY PLANNING.

To improve PRODUCTIVITY LEVEL.

To initiate modernization for achieving ECONOMIC and TECHNOLOGICAL SELF – RELIANCE.

To develop indigenous energy sources and efficient energy usage.

To promote improved quality of life of citizens.

ACHIEVEMENTS Speedy industrial development.

Government investments in the Indian HEALTHCARE CENTRE.

Emphasis on the INFORMATION TECHNOLOGY SECTOR.

Science and technology also made a significant advance.

PROBLEMS FACED –

During this time RAGIV GANDHI was the PRIME MINISTER and hence industrial development was the emphasis of this plan, some opposed it specially the communist groups, this slowed down the pace of progress.

SEVENTH FIVE YEAR PLAN (1985-1989)

OBJECTIVES –

ANTI- POVERTY PROGRAM.

Improved facilities for education to GIRLS.

The government undertook to increase productivity of-

1. Oilseeds, fruits, vegetables.

2. Egg, Meat, Milk.

3. Pulses, Cereals, fish.

Emergence of Informatics, and hooking up of TELECOMMUNICATIONS with Computers.

ACHIEVEMENTSMaking India an independent

economy.

SOCIAL JUSTICE.

Using Modern technology.

Full supply of Food, Clothing and Shelter.

Increasing productivity of Small and Large scale FARMERS.

PROBLEMS FACED –

1989-91, was a period of POLITICAL INSTABILITY in India and hence no five year plan was implemented.

In 1991, India faced a crisis in FOREIGN EXCHANGE RESERVES.

EIGHTH FIVE YEAR PLAN (1992 – 1997)

This plan can also be called as RAO AND MANMOHAN MODEL OF ECONOMIC DEVELOPMENT.

OBJECTIVES Prioritize the specific sectors which

requires immediate investment.

To generate FULL SCALE EMPLOYMENT.

Universalisation of ELEMENTARY EDUCATION.

To place greater emphasis on role of PRIVATE INITIATIVE in the development of the INDUSTRIAL SECTOR.

To strengthen the INFRASTRUCTURAL FACILITIES.

Promote SOCIAL WELFARE MEASURES like improved healthcare, sanitation, communication etc.

GDP growth Per Annum – 5.6

To encourage growth and DIVERSIFICATION of AGRICULTURE.

ACHIEVEMENTS –

Rise in the Employment level.

Poverty reduction.

Self- Reliance on Domestic resources.

Self- Sufficiency in AGRICULTURAL PRODUCTION.

An average annual growth rate of 6.7 percent.

ENERGY was given priority with 26.6 percent of outlay.

Involvement of PANCHAYAT RAJ, NAGARPALIKAS, N.G.O’S.

DECENTRALISATION and people’s participation.

NINTH FIVE YEAR PLAN (1997- 2002)

Target GDP Growth 6.5 Percent.

OBJECTIVES- To prioritize RURAL DEVELOPMENT.

To generate adequate EMPOYMENT OPPORTUNITIES.

To stabilize the prices.

To ensure FOOD and NUTRITONAL SECURITY.

To encourage social issues like WOMEN EMPOWERMENT.

To create a liberal market for increase in PRIVATE INVESTMENT.

To CHECK the growing POPULATION INCREASE.

To provide for the BASIC INFRASTRUCTURE facilities.

ACHIEVEMENTS –

A combined effort of PUBLIC, PRIVATE and ALL LEVELS OF GOVERNMENTS.

Ensured the growth of India’s economy.

SERVICE SECTOR showed fast growth rate.

TENTH FIVE YEAR PLAN

(2002 – 2007)

Target GDP growth – 8 Percent per annum

OBJECTIVES

All children to be in school by 2003 and all children to complete 5 year of schooling by 2007.

Reduction in Poverty ratio from 26% to 21%.

Decadal population growth to reduce from 21.3% in 1991-2001 to 16.2% by 2001-11.

Reducing GENDER GAPS in literacy and Wages rate by 50%.

INFANT MORTILITY RATE to be reduced from 72 in 1999-2000 to 45 in 2007.

MATERNAL MORTILITY RATE to be reduced from 4 per 1000 in 1999-2000 to 2 per 1000 in 2007.

Increase in FOREST/ TREE cover from 19% in 1999-2000 to 25% in 2007.

Providing portable drinking water in all villages.

All main rivers should be cleaned up between 2007 and 2012.

Growth in gainful employment to, at least keep pace with in addition to the work force.

ACHIEVEMENTS – NSTFDC – NATIONAL SCHEDULED TRIBES FINANCIAL AND DEVELOPMENT CORPORATION, has been set up.

Overall growth rate of GDP – 7 Percent.

ELEVENTH FIVE YEAR PLAN (2007 – 2012)

This plan is titled with “ TOWARDS FASTER AND MORE INCLUSIVE GROWTH”.

OBJECTIVES GDP Growth rate to be increased to 10% by the end of plan.

Farm sector growth to be increased to 4%

Creation of SEVEN CRORE JOB opportunities.

Reduced Educated unemployment youth to below 5 PERCENT.

INFANT MORTILITY RATES to be reduced to 28 per 1000 lives.

MATERNAL DEATH RATES to be reduced to 1 per 1000 births.

CLEAN DRINKING WATER to all by 2009.

Improve SEX RATIO to 935 by 2011-12.

ROADS TO ALL VILLAGES that have a population of 1000 and more by 2009.

Increase Forest and Tree cover by 5 %.

Achieve the WORLD HEALTH ORGANISATION standard Air quality in major cities by 2011-12.

Treat all urban WASTEWATER by 2011-12 to CLEAN RIVER WATERS.

Increase AGRICULTURE GDP growth to 4 Percent per annum.

Connect every village by TELEPHONE by 2007 and BROADBAND connectivity to all villages by 2012.