The Five Year Plans
The development plans are drawn
by the Planning Commission to establish India’s economy on a socialistic
pattern in successive phases of five year Periods-called the Five Year Plans.
Major Bodies Behind the Making
of Five Year Plans
The organisation was set up to
formulate basic economic policies, draft plans and watch its progress and
implementation. It consists of:
(I) Planning Commission of India
(ii) National Planning Council
(iii) National Development
Council and State Planning Commissions
DETAILS OF THE FIVE YEAR PLANS
FIRST FIVE YEAR PLAN
(1951-56)
In July 1951, the Planning
Commission issued the draft outline of the First Five Year Plan for the period
April 1951 to March 1956. It was presented to the Parliament in December 1952.
In the First Plan, agriculture received the main thrust, for sustaining of
growth and development of industries which would not be possible without a significant
rise in the yield of raw materials and food.
Objectives:
i) To increase food production.
ii) To fully utilise available
raw materials.
iii) To check inflationary
pressure.
Outlay: The total proposed outlay
was Rs. 3,870 crore.
SECOND FIVE YEAR PLAN
(1956-61)
The main objective was to launch
upon industrialisation and strengthen the industrial base of the economy. It
was in this light that the 1948 Industrial Policy Resolution was revised and a
new resolution of 1956 was adopted. The Second Plan started with an emphasis on
the expansion of the public sector and aimed at the establishment of a
socialistic pattern of society.
Objectives:
i) A sizeable increase in
national income so as to raise the level of living.
ii) Rapid industrialisation of the
country with particular emphasis on the development of basic and key
industries.
Outlay: The Second Plan proposed
a total public sector outlay of Rs. 4,800 crores though actual outlay was only
Rs. 4,672 crore.
THIRD FIVE YEAR PLAN
(1961-66)
In the third Plan, the emphasis
was on long-term development. The Third Plan report stated that during the
five-year period concerned, the Indian economy “must not only expand rapidly
but, at the same time, become self-reliant and self-generating.”
Objectives:
i) An increase in national income
of more than 5 per cent annually. The investment pattern laid down must be
capable of sustaining this growth rate in the subsequent years.
ii) An increase in the
agricultural produce and to achieve self sufficiency by increasing food grain
production.
iii) Greater equality of
opportunities, more even distribution of economic power and reducing wealth and
income disparities.
FOURTH FIVE YEAR PLAN
(1969-74)
After the ‘Plan Holiday’, the
Fourth Plan was begun in 1969.
Objectives:
i) To achieve stability and
progress towards self-reliance.
ii) To achieve an overall rate of
growth of 5.7 per cent annually.
iii) To raise exports at the rate
of 7 per cent annually.
Outlay: The total proposed outlay
was Rs. 24,880 crore, which included Rs. 15,900 crores as public sector outlay
and Rs. 8,980 crore as private sector outlay.
FIFTH FIVE YEAR PLAN
(1974-79)
The Plan was formulated against
the background of sever inflationary pressure.
Objectives: In addition to
removal of poverty and attainment of self-reliance, the Fifth Plan had the
following major objectives.
i) 5.5 per cent overall rate of
growth in Gross Domestic objectives.
ii) Expansion of productive
employment and fuller utilisation of existing skills and equipment.
iii) A national programme for
minimum needs and extended programmes of social welfare.
Outlay: A total outlay of Rs.
53,410 crore was proposed for the Fifth Plan.
SIXTH FIVE YEAR PLAN
(1980-85)
The draft of the Sixth Five Year
Plan (1978-1983) was presented in 1978. However, the plan was terminated with
the change of Government in January 1980. The new Sixth Five Year Plan was
implemented in April 1980.
Objectives:
i) To eliminate unemployment and
underemployment.
ii) To raise the standard of
living of the poorest of masses.
iii) To reduce disparities in
income and wealth.
Outlay: The proposed outlay for
the Sixth Plan totalled Rs.1, 58, 710 crore.
SEVENTH FIVE YEAR PLAN
(1985-90)
The draft of the Seventh Plan was
approved on November 9, 1985 by the National Development Council. The plan was
part of the long-term plan for the period of 15 years.
Objectives:
i) Decentralisation of planning
and full public participation in development.
ii) The maximum possible
generation of productive employment.
iii) Removal of poverty and
reduction in income disparities.
EIGHTH FIVE YEAR PLAN
(1992-97)
The Eighth Plan proposed a growth
rate of 5.6 per cent per annum on an average during the plan period. The Eighth
Plan focused on (i) clear prioritisation of sectors/projects for investment in
order to facilitate implementation of the policy initiatives taken in the areas
of fiscal, trade and industrial sectors and human development.
Objectives:
i) Generation of adequate
employment of achieve near full employment level by the turn of the century.
ii) Containment of population
growth through people’s active co-operation and an effective scheme of
incentives and disincentives.
iii) Universalisation of
elementary education and complete eradication of illiteracy among the people in
the age group of 15 to 35 years.
THE NINTH FIVE-YEAR PLAN
(1997-2002)
It began on April 1, 1997. The
Ninth Plan was the first concrete attempt to translate the programme of
economic reforms and the New Economic Policy within the framework of an
indicative Plan. The Approach Paper to the Ninth Plan (1997-2002) was approved
by the N.D.C. on 16th January, 1997.
Objectives:
i.) Priority to agriculture and
rural development
ii.) Accelerating growth rate of
economy
iii.) Food and nutritional
security for all
iv.) Containing growth rate of
population
v.) Empowerment of women and
socially disadvantaged groups such as SC/ST, backward classes and minorities.
vi.) Promoting and developing
participatory institutions like “Panchayati Raj” institutions, co-operatives
and self-help groups.
TENTH FIVE YEAR PLAN
(2002-07)
On December 21, 2002, the Tenth
Five Year Plan was approved by the National Development Council (NDC). The Plan
has further developed the NDC mandated objectives, of doubling per capita
income in 10 years, and achieving a growth rate of 8% of GDP per annum. An 8%
growth rate is considered necessary for achieving the social and economic
targets of Tenth Plan Keeping in mind decadal growth performance and the steady
acceleration that the country has recorded in growth over the past two decades,
it is a realisable target. The plan has a number of new features, such as, for
the first time
(a) It recognises the rapid
growth of labour force over the next decade
(b) Addresses the issue of
poverty and the unacceptably low levels of social indicators
(c) Adopted a “differential
development strategy” to equate national targets into balanced regional
development as there is vast difference in the potentials and constraints of
each state
(d) Recognises that the
governance is perhaps one of the most important factors for ensuring
realisation of the Plan
(e) Identifies measures to
improve efficiency, unleash entrepreneurial energy, and promote rapid and
sustainable growth
(f) Proposes major reforms for
agricultural sector making ‘agriculture’ the core element of the Plan.
Since economic growth is not the
only objective, the Plan aims at harnessing the benefits of growth to improve
the quality of life of the people by setting the following key targets:
1. All children to be in school by
2003 and all children to complete five years of schooling by 2007
2. Reduction in poverty ratio
from 26% to 21%
3. Growth in gainful employment
to, at least, keep pace with addition to the labour force
4. Decadal population growth to
reduce from 21.3% in 1991-2001 to 16.2% by 2001-11
5. Reducing gender gaps in
literacy and wage rates by 50%
6. Literacy rate to increase from
65% in 1999-2000 to 75% in 2001
7. Infant Mortality Rate (IMR) to
be reduced from 72 in 1999-2000, to 45 in 2007
8. .Maternal Mortality Rate (MMR)
to be reduced from 4 per 1000 in 1999-2000 to 2 per 1000 in 2007
9. Providing portable drinking
water in all villages
10. Cleaning of major polluted
river stretches
11. Increase in forest/tree cover
from 19% in 1999-2000 to 25% in 2007
ELEVENTH PLAN
(2007-2012)
The United Progressive Alliance
government issued a paper in the eleventh plan titled “Towards faster and more
inclusive growth.” According to the approach paper, the monitorable targets of
five-year plan are:
1. GDP growth rate to be increased
to 10% by the end of the plan;
2. Farm sector growth to be
increased to 4%;
3. Creation of seven crore job
opportunities;
4. Reduce educated unemployed
youth to below 5 percent
5. Infant mortality rates to be
reduced to 28 per 1000 births;
6. Maternal death rates to be
reduced to 1 per 1000 births;
7. Clean drinking water to all by
2009;
8. Improve sex ratio to 935 by
2011-12 and to 950 by 2016-17;
9. Ensure electricity connection
to all villages and broadband over power lines (BPL) households by 2009
10. Roads to all villages that
have a population of 1000 and above by 2009;
11. Increase forest and tree
cover by 5%;
12. Achieve the World Health
Organization standard air quality in major cities by 2011-12;
13. Treat all urban wastewater by
2011-12 to clean river waters;
14. Increase energy efficiency by
20 percent by 2016-17
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