Five Year Plan Word
Five Year Plan Word
Five Year Plan Word
The economy of India is based in part on planning through its five-year plans, which are
developed, executed and monitored by the Planning Commission. The tenth plan completed its
term in March 2007 and the eleventh plan is currently underway. Prior to the fourth plan, the
allocation of state resources was based on schematic patterns rather than a transparent and
objective mechanism, which led to the adoption of the Gadgil formula in 1969. Revised versions
of the formula have been used since then to determine the allocation of central assistance for
state plans.
Contents
1 First Five-Year Plan (1951-1956)
2 Second Five-Year Plan (1956–1961)
3 Third Five-Year Plan (1961–1966)
4 Fourth Five-Year Plan (1969–1974)
5 Fifth Five-Year Plan (1974–1979)
6 Sixth Five-Year Plan (1980–1985)
7 Seventh Five-Year Plan (1985–1990)
8 Eighth Five-Year Plan (1992–1997)
9 Ninth Five-Year Plan (1997–2002)
10 Tenth Five-Year Plan (2002–2007)
11 Eleventh Five-Year Plan (2007–2012)
12 Approach to the Twelfth Five-Year Plan (2012-2017)
o 12.1 Inclusive Growth
The agricultural sector was hit hardest by the partition of India and needed urgent attention.
The total planned budget of 206.8 billion (US$23.6 billion in the 1950 exchange rate) was
allocated to seven broad areas:
land rehabilitation (4.1 percent), and for other sectors and services (2.5 percent).
The most important feature of this phase was active role of state in all economic sectors. Such a
role was justified at that time because immediately after independence, India was facing basic
problems—deficiency of capital and low capacity to save.
The target growth rate was 2.1% annual gross domestic product (GDP) growth; the achieved
growth rate was 3.6%. The net domestic product went up by 15%. The monsoon was good and
there were relatively high crop yields, boosting exchange reserves and the per capita income,
which increased by 8%. National income increased more than the per capita income due to rapid
population growth. Many irrigation projects were initiated during this period, including the
Bhakra Dam and Hirakud Dam. The World Health Organization, with the Indian government,
addressed children's health and reduced infant mortality, indirectly contributing to population
growth.
At the end of the plan period in 1956, five Indian Institutes of Technology (IITs) were started as
major technical institutions. The University Grant Commission was set up to take care of funding
and take measures to strengthen the higher education in the country. Contracts were signed to
start five steel plants, which came into existence in the middle of the second five-year plan.
Hydroelectric power projects and five steel mills at Bhilai, Durgapur, and
The total amount allocated under the second five year plan in India was Rs. 4,800 crore. This
amount was allocated among various sectors:
Many primary schools were started in rural areas. In an effort to bring democracy to the
grassroot level, Panchayat elections were started and the states were given more development
responsibilities.
State electricity boards and state secondary education boards were formed. States were made
responsible for secondary and higher education. State road transportation corporations were
formed and local road building became a state responsibility. The target growth rate of
GDP(gross domestic product)was 5.6 percent.The achieved growth rate was 2.84 percent.
Funds earmarked for the industrial development had to be diverted for the war effort. India also
performed the Smiling Buddha underground nuclear test in 1974, partially in response to the
United States deployment of the Seventh Fleet in the Bay of Bengal. The fleet had been deployed
to warn India against attacking West Pakistan and extending the war.
Target Growth: 5.7% Actual Growth: 3.30%
The Indian national highway system was introduced for the first time and many roads were
widened to accommodate the increasing traffic. Tourism also expanded.
Family planning was also expanded in order to prevent overpopulation. In contrast to China's
strict and binding one-child policy, Indian policy did not rely on the threat of force .More
prosperous areas of India adopted family planning more rapidly than less prosperous areas,
which continued to have a high birth rate.
The main objectives of the 7th five year plans were to establish growth in areas of increasing
economic productivity, production of food grains, and generating employment opportunities.
As an outcome of the sixth five year plan, there had been steady growth in agriculture, control on
rate of Inflation, and favourable balance of payments which had provided a strong base for the
seventh five Year plan to build on the need for further economic growth. The 7th Plan had
strived towards socialism and energy production at large. The thrust areas of the 7th Five year
plan have been enlisted below:
Social Justice
Removal of oppression of the weak
Using modern technology
Agricultural development
Anti-poverty programs
Full supply of food, clothing, and shelter
Increasing productivity of small and large scale farmers
Making India an Independent Economy
Based on a 15-year period of striving towards steady growth, the 7th Plan was focused on
achieving the pre-requisites of self-sustaining growth by the year 2000. The Plan expected a
growth in labour force of 39 million people and employment was expected to grow at the rate of
4 percent per year.
Some of the expected outcomes of the Seventh Five Year Plan India are given below:
Balance of Payments (estimates): Export - 33,000 crore (US$7.4 billion), Imports - (-)
54,000 crore (US$12 billion), Trade Balance - (-) 21,000 crore (US$4.7 billion)
Merchandise exports (estimates): 60,653 crore (US$13.5 billion)
Merchandise imports (estimates): 95,437 crore (US$21.3 billion)
Projections for Balance of Payments: Export - 60,700 crore (US$13.5 billion), Imports - (-)
95,400 crore (US$21.3 billion), Trade Balance- (-) 34,700 crore (US$7.7 billion)
Seventh Five Year Plan India strove to bring about a self-sustained economy in the country with
valuable contributions from voluntary agencies and the general populace.
Modernization of industries was a major highlight of the Eighth Plan. Under this plan, the
gradual opening of the Indian economy was undertaken to correct the burgeoning deficit and
foreign debt. Meanwhile India became a member of the World Trade Organization on 1 January
1995.This plan can be termed as Rao and Manmohan model of Economic development. The
major objectives included, controlling population growth, poverty reduction, employment
generation, strengthening the infrastructure, Institutional building,tourism management, Human
Resource development, Involvement of Panchayat raj, Nagar Palikas, N.G.O'S and
Decentralisation and people's participation. Energy was given priority with 26.6% of the outlay.
An average annual growth rate of 6.78% against the target 5.6% was achieved.
To achieve the target of an average of 5.6% per annum, investment of 23.2% of the gross
domestic product was required. The incremental capital ratio is 4.1.The saving for invetsment
was to come from domestic sources and foreign sources,with the rate of domestic saving at
21.6% of gross domestic production and of foreign saving at 1.6% of gross domestic production.
Background of Ninth Five Year Plan India: Ninth Five Year Plan was formulated amidst the
backdrop of India's Golden jubilee of Independence.
The main objectives of the Ninth Five Year Plan of India are:
During the Ninth Plan period, the growth rate was 5.35 per cent, a percentage point lower than
the target GDP growth of 6.5 per cent.
Inclusive Growth
The progress towards inclusiveness in growth and development is the most difficult to assess,
because inclusiveness is a multi‐dimensional concept. The result of inclusive growth should be a
reduction in the incidence of poverty, significant improvement in health outcomes, universal
access for children to school, increased access to higher education and improved standards of
education, including skill development. There should also be an improvement in employment
opportunities, increase in wage rates, betterment in livelihoods and improvement in provision of
basic amenities like water, electricity, roads, sanitation and housing. Particularly importance
have to be given to the needs of the SC/ST and OBC population, women and children (as
minorities) and other excluded groups. In order to achieve inclusiveness in all these sectors
requires multiple interventions, and its success depends not only on introducing new policies and
government programmes, but also on institutional and attitudinal changes, which are highly time
consuming.
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