5 Year Plan

Plan Targeted Actual Description

Growth Growth
1st Plan 2.1% 3.6%  PM Jawaharlal Nehru
(1951-1956)  Harrod Domar model ( emphasize imp of investment in economic
growth)
 Laid the foundation for rapid industrialization
 Primary Focus - Agricultural Development
 Bhakra , Hirakud and Damodar Valley Dams
 Establishment of 5 lITs ( KGP, Mumbai , Chennai , Kanpur , Delhi)
 Influx of refugees, severe food shortage & mounting inflation
confronted the country at the onset of the first five-year Plan
 Huge allocation for Bhakra Nangal Dam (Initiation)
 The Plan Focused on agriculture, price stability, power and
transport
 It was a successful plan primarily because of good harvests in the
last two years of the plan
 Objectives of rehabilitation of refugees, food self-sufficiency &
control of prices were more or less achieved
2nd Plan 4.5% 4.3%  PM Jawaharlal Nehru
(1956-1961)  Harrod Domar Model
 P.C. Mahalanobis Model(Emphasize Industrialization as a mean to
rapid growth) the strategy for resource allocation to the various
sectors was prepared by Prof. PC Mahalanobis.
 Primary Focus - Industrial Development
 Reduce dependence on imports ( Import Substitution)
 Socialistic pattern( Industrial Policy 1956)
 Heavy Industries - Steel ,Chemicals and machinery
 Hydroelectric power projects and 5 Steel plants
 ( Bhilai , Rourkela , Durgapur , with the help of Soviet , British and
west Germany respectively)
 Saw Establishment of Public sector enterprises , investment
infrastructure development
 Completion of Bhakra Nangal Dam
 Acute shortage of fore led to pruning of development targets,
price rise was also seen (about 30%) with regards to the decline in
the earlier Plan & the 2nd FYP was only moderately successful.
 Atomic Energy Commission
 Shortcomings - Payment crisis ( 1957)
 • Over emphasis on industries casted agriculture and other
sectors
3rd Plan 5.6% 2.8%  Gadgil Yojna ( Deputy Chairman of Planning Commission)
( 1961 - 1966)
 Main Objective - Economic self sufficiency
 Agriculture was the top priority
 Indo China war( 1962)
 Indo Pak war ( 1965)
 • Because of war and drought in some areas it wasn't successful
Three  As a response to the failure of the 3rd five year plan due to wars
Annual Plan  Equal importance to all sectors
; Holidays  Focused on addressing immediate economic challenges
( 1966-1969)  Devalued the rupee to make Indian goods more competitive in
international market ( Boosted exports)
 Prevailing crisis in agriculture and serious food shortage
necessitated the emphasis on agriculture during the Annual Plans.
 During these plans a whole new agricultural strategy was
implemented. It involving wide-spread distribution of extensive
use of fertilizers, exploitation of irrigation potential and soil
conservation.
 It was departure from the conventional Long term planning
4th Plan 5.7% 3.3%  PM Indira Gandhi
1969-1974)  2 Objectives - Sustainable Growth and
 Growth with stability
• Nationalization of 14 major banks
 Green revolution initiated
• 1971 War( Bangladesh Liberation)
• Focus on implementation of family planning
• Control population growth
• Promote reproductive health and family welfare
 • Economic challenges - Inflation , rising oil prices , internal
political instability
5th Plan 4.4% 4.8%  Addressed Socio economic challenges
(1974-  Promoted Inclusive Growth
1978)  Primary Objective - Eradication of Poverty ( Garibi Hatao)
 Attainment of self reliance
 Upliftment of marginalized section by - policies and programs
 Employment Generation
 Social Justice
 Govt Launched 20 Point program in 1975
 To address -unemployment, housing ,education , healthcare
• MNP( Minimum Needs Programme )
 Provide essential service and infrastructure in rural are
 Promotion of high rate of growth, better distribution of income
and significant growth in the domestic rate of savingi were seen as
key
 Instruments
• Establishment of RRBS
• Emergency Period ( 1975-76)
• Feod for work Programme (National Rural Employment
Programme)
• Challenges - Global Oil Crisis and economic instability
 • Terminated Prematurely in 1978 by new elected govt of Moraji
Desai
Rolling  Moraji Desai
Plan  Interim Planning approach
(1978-  2 years
1980)  Focus on employment and criticism of Nehru Govt for
centralization of power
 Intention to provide flexibility and adaptability
 3 Types of Plan :
 Current Year Plan - Focus on annual budget and short term goals
 Plan for 3-5 years targeting medium term objectives
  Perspective Plan for (10-20) years targeting long term objectives
 Advantage over FYP , allowed for adjustment and flexibility
 Drawback - Frequent amendments hampered efficiency
 Rolling plan was rejected by INC in 1980

6t Plan 5.2% 5.7%  PM Indira Gandhi

(1980-  Aim-
1985)  Foster Economic Liberalization
 Eradicate poverty
 Achieve technological self reliance
 The Plan focused on Increase in national income, modernization of
technology, ensuring continuous decrease in poverty and
unemployment
• Promote Industrialization , enhance agricultural productivity
• Investment in key areas - Energy , infrastructure , educatioÖ
• NABARD was established
 Focus on improving healthcare , access to education and
strengthening social welfare programs
 • This was end of Nehruvian Socialism
7th Plan 5% 6%  PM Rajiv Gandhi
(1985-  Achieving Self Sufficiency in economy
1990)  Generating Productive employment opportunities
 Upgrading technology
 Accelerating Food Gain Production
 Increase Employment opportunities
 Promote Labor Intensive Industries
 Enhance Skill Development Programs
 Food Work and Productivity
 Scientific Sector
 Marked a shift in approach towards private sector over public
sector
 Foster entrepreneurship
 Hindu Rate of Growth
 Attract investments and stimulate economic growth by private
sector
Annual Plans  Due to volatile political situation at center , 8th plan couldn't be
(1990-91) &  implemented as scheduled
(1991-92)  • Focus - Immediate Economic concerns
8th Plan 5.6% 6.8%  PM V. Narasimha Rab
(1992-  Beased on John Miller Mode)
1997)  BOP , rising debt burden , fiscal deficit , rising burden ,
recession , inflation
 LPG REFORMS
 Development of Human ResourceS
 Human Development
 Including employment , education and public health
 High growth of agriculture and allied sector and manufacturing
sector , growth in exports and imports, improvement in trade and
current account deficit ( various Sector achieved growth)
• 1991 - Economic Crisis ( New Economic Policy)
• Liberalize and reform the Indian Economy
 Deregulation , privatization and liberalized foreign investment to
stimulate economic growth
 • India became a member of WTO 1995
• High annual growth rate recorded
 Decline in the share of public sector investments ( accounted
for 34% of total investment)
• National Social Assistance Programme
• Emphasis on private sector participation
 • Reducing Govt role in economy
9th Plan 6.5% 5.4%  PM Atal Bihari Vajpayee
(1997-  Growth with Social Justice and Equality
2002)  National Highway Development Program
 PMGSY ( PM Gram Sadak Yojna) for rural road connectivity
 Sarva Siksha Abhiyaan ( education for all)
 • Failed due to Global slowdown and Asian Financial Crisis
10th Plan 8.1% 7.6%  PM Atal Bihari Vajpayee
2002-2007)  Manmohan Singh
 It had set monitorable targets for few indicators (11) of
development besides 8% growth targets
• The target includes reduction in gender gap in literacy and wage
reduction , reduction in IMR & MMR , improvement in literacy ,
access to portable drinking water , cleaning of major polluted
rivers etc
• Primary Objective - Double India's Per capital income within a
decade
• Goal of reducing poverty to 15% by 2012
 Governance was considered as a factor of development &
agriculture as prime moving force of economy
• Panchayati Raj Institutions
• Legal Reforms
 Infrastructure Development - Roads, Railways, Power generation ,
the telecommunication networks
 • MGNREGA Launched
11th plan 9% 8%  PM Manmohan Singh
(2007-  Faster/Rapid and more Inclusive Growth
2012)  Made my C Rangarajan
 Savings and investment rates have increased
 Foreign Investment
 Not inclusive - SC ISTs & minorities face poverty , malnutrition,
morality etc
 Aim - Achieve Challenges of poverty , unemployment ,regional
disparities while achieving high and sustainable growth
12th Plan  Faster more inclusive and sustainable growth
(2012-  Targeted Growth Rate : 9%
2017)  2nd Financial Crisis
 10% reduction in poverty
 Create 50 million new Jobs
 Get IMR : 1000 , Child Sex Ratio : 950 , TFR :2.1
 MSME
 Agricultural Non agricultural occupation ( Shift)
 Increase mean school years , forest cover , infrastructure
investment , rural tele density
 Key Focus - Poverty reduction , Social Inclusion , Environment
Sustainability