Presented by: Abhishek Saxena Anuj Jaiswal Shushrita Mallik

Why to Plan ???

After independence, India was in dire conditions and needed to start acting soon Some of the problems necessitated need for an immediate plan:
Vicious circle of poverty Foreign Trade Need for Rapid industrialization Population pressure Development of Natural resources Capital Deficiency & Market imperfections

Planning is an economic mechanism for resource allocation and decision-making in contrast with the market mechanism. Economic planning refers to any directing or planning of economic activity outside the mechanism of the market, in an attempt to achieve specific economic or social outcomes. Economic planning can apply to production, distribution or all three of these functions.
http://en.wikipedia.org/wiki/Economic_planning

investment,

Planning body Survey of resources and collection of necessary data Setting of planning objectives Priorities Development strategy Balancing act Resource mobilisation Administrative efficiency

Where we are

Where we want to be

How we will do it

How are we doing

Assessment

Baseline

Components

Down to Specifics

Evaluate

Environmental Scan Background Information Situational Analysis SWOT Strengths, Weaknesses, Opportunities, Threats

Situation Past, Present and Future Significant Issues Align / Fit with Capabilities

Mission & Vision Values / Guiding Principles Major Goals Specific Objectives

Performance Measurement Targets / Standards of Performance Initiatives and Projects Action Plans

Performance Management Review Progress Balanced Scorecard Take Corrective Actions Feedback upstream revise plans

Gaps

Matt H. Evans, [email protected]

Economic growth
Self reliance

Removal of unemployment
Reduction of income inequalities

Elimination of poverty
Modernisation

Planning commission of India was setup in March 1950 by government of India. The task before planning commission of India are:

Effective Utilization of Resources. Prepare Five Year Plan Along With its Objective. Co-ordination with State Government of India For Execution of Plan.

Determination Of Priorities, Stages Of Plan and Propose of Allocation Of Resources For Due Completion Of Stages.

 1. 2. 3.

Set up in 1950 with Jawaharlal Nehru as its chairman. Commission Comprises of 8 members: Prime Minister (Chairman) Four Full time Members (including Deputy Chairman) Minister of Planning Minister of Finance Minister of Defence At Present: ChairmanDeputy ChairmanMember SecretaryDr. Manmohan Singh Prime Minister Shri Montek singh Ahluwalia Shri Rajeev Ratna Shah

4.
5.

 Highest forum for economic planning, since Aug 6, 1952. Representatives of both Central & State Govt. Members: 1. 2. 3. PM of India CMs of all States Member of Planning Commission

Democratic Participation from different sectors Existence of central plan and state plan Financial planning Unchanging priorities Short term and long term nature Central planning authority Set objectives Government control Complete development Definite time period Objectives Economic growth Self reliance Removal of unemployment Reduction of income inequalities Elimination of poverty Modernisation

1.First Five-Year Plan (1951-1956)

2 Second Five-Year Plan (19561961) 3 Third Five-Year Plan (19611966) 4 Fourth Five-Year Plan (19691974)

5 Fifth Five-Year Plan (19741979)

6 Sixth Five-Year Plan (19801985) 7 Seventh Five-Year Plan (19851990) 8 Eighth Five-Year Plan (19921997) 9 Ninth Five-Year Plan (19972002) 10 Tenth Five-Year Plan (20022007) 11 Eleventh Five-Year Plan (20072012

Target
1. First Plan (1951-56) 2. Second Plan (1956-61) 3. Third Plan (1961-66) 4. Fourth Plan (1969-74) 5. Fifth Plan (1974-79) 6. Sixth Plan (1980-85) 2.1 4.5 5.6 5.7 4.4 5.2

Actual
3.61 4.27 2.84 3.30 4.80 5.66

7. Seventh Plan (1985-90)

8. Eighth Plan (1992-97) 9. Ninth Plan (1997-2002 10.Tenth Plan (2002-2007)

5.0
5.6 7.0 8.7

6.01
6.78 6.0 7.1
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First plan Second Plan Third Plan Fourth plan Fifth plan Sixth plan Seventh plan Eight plan Ninth Plan
Tenth Plan

2000 2340 2380 1560 3180 28100 36134 62400 75000

52000
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the standard of living Community and agriculture development Energy and irrigation Communications and transport Industry Land rehabilitation Social services Target of GDP growth 2.1 per year Achieved had been 3.6% per year

Objectives

Achievements

GDP 3.6% per year Evolution of good irrigation system

Improvement

In

roads civil aviation railways Telegraphs posts manufacture of fertilizers electrical equipment

development of only a few industries private industry had not developed

To increase by 25% the national income To make the country more industrialized To increase employment opportunities so that every citizen gets a job

Objectives

Achievements

5 steel plants

a hydro-electric power project

production of coal increased more railway lines

Mining and industry Community and agriculture development Power and irrigation Social services Communications and transport Miscellaneous

Development of

Land reform measures

improved the living standards of the people

The large enterprises in seventeen industries were nationalized

eliminate the importation of consumer goods high tariffs Low quotas or banning some items altogether License were required for starting new companies This is when India got its License Raj, the bureaucratic control over the economy When a business was losing money the Government would prevent them from shutting down

Objectives

Achievements

More stress to agriculture

subsidies Sufficient help Effective use of country's

Decentralization

Organizations formed Laid emphasis on

oil conservation irrigation Afforestation dry farming
Panchayat Zila Parishads

resources

To increase the national income by 5% per year To increase the production of agriculture so that the nation is self sufficient in food grains To provide employment opportunities for every citizen of the country To establish equality among all the people of the country

Many fertilizer and cement plants were built Green Revolution

PMs Jawaharlal Nehru Gulzarilal Nanda Lal Bahadur Shastri

Sino Indian War, India witnessed increase in price of products. The resulting inflation

Objectives to reform and restructure govts expenditure agenda( defense became one major expense) To facilitated growth in exports to alter the socio economic structure of the society

Achievements Great advancement has been made with regard to India's national income considered as one of the emerging powers served as a stepping stone for the economic growth Food grains production increased

A gap was created between the people of the rural areas and those of the urban areas. Due to recession, famine and drought, India did not pay much heed to long term goals

Objectives

Problems

To reduce social, regional, and economic disparities To enhance agricultural productivity To check rural and urban unemployment To encourage selfemployment Production support policies in the cottage industry sector To develop labor intensive technological improvements

The international economy was in a trouble Food, oil, and fertilizers where prices sky-rocketed Several inflationary pressures

Achievements

Food grain production was above 118 million tons due to the improvement of infrastructural facilities Bombay High had shot up the commercial production of oil in India

The world economy was in a troublesome state This had a negative impact on the Indian economy Prices in the energy and food sector skyrocketed and as a consequence inflation became inevitable

Objectives

Achievements

To improve productivity level To initiate modernization for achieving economic and technological self-reliance To control poverty and unemployment To develop indigenous energy sources and efficient energy usage To promote improved quality of life of the citizens To introduce Minimum Needs Program for the poor To initiate Family Planning

Speedy industrial development Emphasis on the information technology sector self sufficiency in food science and technology also made a significant advance several successful programs on improvement of public health government in the Indian healthcare sector Government investments in the Indian healthcare sector

During this time the Prime Minister was Rajiv Gandhi and hence industrial development was the emphasis of this plan some opposed it specially the communist groups, this slowed down the pace of progress.

Objectives

Anti-poverty program Improved facilities for education to girls

Oilseeds,Fruits,Vegetables Pulses,cereals,Fish Egg,Meat,milk.

The government undertook to increase productivity of

Communications Emergence of informatics, and hooking up of telecommunications with computers Transport inland waterways, product pipelines, civil aviation, coastal shipping

Achievements Social Justice Removal of oppression of the week 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

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(Forex) reserves

Objectives

Prioritize the specific sectors which requires immediate investment To generate full scale employment Promote social welfare measures like improved healthcare, sanitation, communication and provision for extensive education facilities at all levels To check the increasing population growth by creating mass awareness programs To encourage growth and diversification of agriculture To strengthen the infrastructural facilities To place greater emphasis on role of private initiative in the development of the industrial sector

Achievements

Rise in the employment level Poverty reduction Self-reliance on domestic resources Self-sufficiency in agricultural production GDP Growth Per Annum 5.6

to prioritize rural development to generate adequate employment opportunities to stabilize the prices to ensure food and nutritional security to provide for the basic infrastructural facilities like education for all, safe drinking water, primary health care, transport, energy to check the growing population increase to encourage social issues like women empowerment to create a liberal market for increase in private investments

OBJECTIVES

ACHIEVEMENTS

A combined effort of public, private, and all levels of government ensured the growth of India's economy. Service sector showed fast growth rate

OBJECTIVES

To transform the country into the fastest growing economy of the world targets an annual economic growth of 10% Human and social development The social net Industry and services: Industry,Minerals,Energy,Information technology,Tourism,Real estate,Construction,Internal trade Forests and environment Science and technology Special area programs

schooling to be compulsory for children

Eleventh Five Year Plan (2007-2012)

Introduction:
The National Development Council has approved the 11th Five Year Plan for the period from 2007 to 2012. The plan document is entitled Towards Faster and More Inclusive Growth. The Indian economy on the eve of 11th Plan is much stronger than it was on the eve of 10th Plan. 10th Plan has achieved the highest growth rate of GDP at 7.8 percent. The priority areas for this plan are: agriculture, irrigation and water resources, education, health, infrastructure, employment, upliftment of SCs/STs, other backward classes, minorities. women and children. .

Strategy of 11th Plan:

The main elements of strategy of Plan are: 1. Rapid Growth 2. Inclusive Growth 3. Main Priority Areas 4. Main Focus on Private Sector 11th

Main Areas of 11th Plan:

Main areas of 11th plan are as follows: 1. Agriculture 2. Infrastructure Highways Airports Railways Power Generation 3. Rural Infrastructure: Specific Targets of Bharat Nirman Programme for the Period (2005-2009) Irrigation Rural Roads Rural Housing Rural Water Rural Electrification Rural Telephone 4. Industry 5. Employment 6. Education 7. Health 8. Social Sector

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Sectoral Growth 11th Plan:

Targets of

Financing

Plan:

of Eleventh Five Year

Financing Pattern of Public Sector Outlay during 11th Plan

(Rs.` Crore at 2006-07 prices)

Area

Gross Domestic Product (GDP) Agriculture Industry Services Exports Imports

Growth Rate per Annum (in %) 9.0

Resources 1. Balance from Current Revenue 2. Borrowings 3. Net Inflow from abroad 4. Resources of PSEs

Central Government 6,39,989 7,67,722 10,59,711 24,81,422 -3,24,851 21,56,571

States and UTs 3,85,050 6,49,423 1,28,824 11,63,296 3,24,851 14,88,147

Total 10,39,039 14,17,145 11,88,535 36,44,718 36,44,718

4.1 10.5 9.9 16.4 12.5

5. Aggregate Resources (1 to 4) 6. Assistance to States and UTs TOTAL RESOURCES

(Source: Planning Commission)

(Source: Economic Survey, 2007-08, p.a-50)

Eleventh Plan Outlay and Its Allocation (at 2006-07 Prices)

Items 1. Agriculture and Allied Activities 2.Rural Development Proposed Outlay (Rs.` Crore) 1,36,381 3,01,069 Percentage of Total outlay 3.7 8.3 0.7 5.8 23.4 4.2 15.7 2.6 2.4 1.7 30.3 1.2 100
(Source: Economic Survey, 2007-08, p.a-47)

3. Special Area Programme 26,329 for Backward Regions 4. Irrigation and Flood 2,10,326 Control 5. Energy 8,54,123 6. Industry and Minerals 7.Transport 8. Communication 9. Science, Technology and Environment 10. General Economic Services 11. Social Services 12. General Services TOTAL 1,53,600 5,72,443 95,380 87,933 62,523 11,02,237 42,284 36,44,718

Assessment of Economic Planning in India:

o
1. 2. 3.

Achievements:

Failures:

Increase in National Income Increase in Per Capita Income Increase in the Rate of Capital Formation 4. Development of Agriculture 5. Industrial Development 6. Infrastructure Development 7. Generation of Employment 8. Development of Social Services Life Expectancy Death Rate Education Health 9. Self-Reliance 10. Structural and Institutional Changes

The major failures of economic planning are as follows: 1. No Substantial Increase in the Standard of Living 2. Increase in Unemployment 3. Inequality in Distribution of Income and Wealth 4. More Ambitious 5. Paradox of Saving and Investment 6. Predominance of Welfare Considerations 7. Less Growth in Productive Sector

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Thank you