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Economic Planning means utilization of country’s
resources in different development activities in
accordance with national propriters.
 The Indian economy was premised on the
concept of planning.
 This was carried through the Five-Year Plans.
 The concept of economic planning in India is
derived from the Russia (USSR).
 The Five-Year Plans, developed, executed, and
monitored by the Planning Commission (1951-
2014)
 This Carried forward with the Prime Minister as
the ex-officio chairman, the commission has a
nominated Deputy Chairman, who hold he rank
of a Cabinet Minister.
GDP Growth
Full Employment
Equitable Distribution or
Equity
Modernization
Self-Sufficient
Five-Year Plans (FYPs) are centralized and integrated national economic
programs. . The concept of economic planning in India is derived from the
Russia (USSR). Joseph Stalin implemented the first Five Year Plan in the
Soviet Union in 1928. Most communist states and several capitalist
countries subsequently have adopted them.
India launched first five year plan after the Independence in 1951. When
the first plan was initiated, the country was battling severe shortage of food
grains. Accordingly, the first plan focused on the higher agricultural
production as the principal objective
FIRST Five year Plan
 The first Indian Prime Minister,
Jawaharlal Nehru presented the First
Five-Year Plan to the Parliament of India.
The First Five-year Plan was launched in
1951 which mainly focused in
development of the primary sector. The
First Five-Year Plan was based on the
Harrod–Domar model.
 At that time population was increasing
more as compared to economic growth.
The rate of capital formation was at low
level. The per capita income in the
country was also very low. “the target
growth was 2.1% and the actual growth
was 3.6%.
o Increase in agricultural production
o To reform the country’s economy
o To solve the food problem
o To raise the standard of living
o Equitable distribution of
production, income, wealth
o To provide social and economic
justice
o Electrical Equipment
o Agricultural Development
o Telegraphs and Posts
o Evolution of good Irrigation
system
o Railway Development
o Miscellaneous Achievements
o Education
o Improvement in Roads
SECOND Five Year Plan
It was made for the duration of
1956 to 1961.
It was based on the P.C.
Mahalanobis Model.
Its main focus was on the
industrial development of the
country.
This plan was successful and
achieved growth rate of 4.1%
o Increase in industrial production
o Development of heavy industry
o Sizeable increase in the national income
to raise the level of living.
o Large expansion of employment
opportunities
o Reduction of inequalities in income and
wealth
o More railway lines
o Agricultural Development
o Power Programs
o Industrial Development
o 5 steel plant
o Land Reform Measures
o A Hydro-electric power project
THIRD Five Year Plan
 It Was made for the duration of
1961-1966
 The main target of this plan was to
make the economy independent
and to reach self active position of
take off.
 This plan is called ‘Gadgil Yogna’
also.
 The target growth rate was 5.6%,
but the actual growth rate was
2.4%.
 Due to the Indo-Pak war and China
war, this plan could not achieve its
growth target of 5.6%
o Self-sufficient in food grain
production
o Generation of employment
opportunities
o Reduction in inequality
o Increase agricultural production
o Green revolution
o Organization formed- Panchayat
Zila Parishads
o Afforestation
o Improvement in roads
o Oil conservation
o Improvement in railways
o Improvement in electrical
equipment
Three Year Annual Plan
 It is also known as Plan Holiday
 Due to failure of Third Plan that of the devaluation
of rupee(to boost exports) along with inflationary
recession led to postponement of Fourth FYP.
 Three Annual Plans were introduced in the 1966-
1969 instead. Prevailing crisis in agriculture and
serious food shortage necessitated the emphasis on
agriculture during the Annual Plans.
 During the Annual Plans, the economy absorbed the
shocks generated during the Third Plan.
Fourth Five Year plan
 The duration of plan holiday was from 1969 to
1974.
 At this time Indira Gandhi was the prime
minister. The Indira Gandhi government
nationalized 14 major Indian banks and the
Green Revolution in India advanced
agriculture.
 The main reason behind the plan holiday was
the Indo-Pakistan war & failure of third plan.
 This plan target was 5.7% but achieved only
3.3% of the target
o Accelerating the process of growth
o Price stability
o Development of human resources
in rural areas
o Measures to maintain stability in
the prices and to set up consistent
economic policies which would
lead towards the goal of mixed
economy
o Served as a stepping stone for the
economic growth
o Agriculture Production
o Industrial Development
o General Development
o 1st super fast train Rajdhani Express
was introduced
o Madras renamed Tamil Nadu.
o India’s first atomic power station
FIFTH Five Year Plan
The duration of fifth plan was from 1974-1979
During this plan the slogan of “Garibi Hatao” is given during
the 1971 elections by Indira Gandhi.
 The target growth rate was 4.4% and the actual growth rate was et 4.8%
o Expansion of productive employment;
o Extended programme of social welfare;
o Stress on agriculture, key and basic
industries producing goods for mass
consumption.
o 5.5 per cent overall rate of growth of
‘gross domestic product
o Raising the living standards with a focus
on weaker sections of the society
o Food grain production was above 118
million tons due to the improvement of
infrastructural facilities
o Agricultural and Social Sector
o Industrial Development
o General Development
Rolling Five Year Plan
 Janta Govt. put forward a plan for 1978-1983 emphasizing on
employment, in contrast to Nehru Model which the Govt
criticized for concentration of power, widening inequality & for
mounting poverty . This plan was again rejected by the Indian
National Congress government in 1980 and a new Sixth Plan was
made. This plan was again rejected by the Indian National
Congress government in 1980 and a new Sixth Plan was made.
The first plan focused on the annual budget, the second was a
plan for a fixed number of years, which may be 3, 4 or 5 years
and the Third Plan was a perspective plan for long terms i.e. for
10, 15 or 20 years. Hence there was no fixation of dates for the
commencement and termination of the plan in the rolling plans
SIXTH Five Year Plan
 Its duration was from 1980 to 1985.
 It was based on investment yojna,
infrastructural changing and trend
to growth model.
 This marked the beginning of
economic liberalization
 The National Bank for Agriculture
and Rural Development (NABARD)
was established for development of
rural areas on 12 July 1982 by
recommendation of the Shivaraman
Committee.
 Its growth target was 5.2% but it
achieved 5.7%.
o A progressive reduction in poverty
o Reduction in unemployment
o Strengthening the distribution bias of public policies
and services in favor of weaker sections of society
o A progressive reduction in regional inequalities
o Promotion of efficiency in the use of resources and
improved productively
o A speedy development of indigenous sources of
energies
o Controlling the growth of population
o Horticultural and Plantation Crops
o Crop Production and Selected Inputs
o Agricultural Credit and Storage Capacity
o Animal Husbandry and Dairying
o Emphasis on the information technology sector
o Self-sufficiency in food
o Government investment in the Indian Health
sector
o Science and technology also made a significant
advance
o Several successful programs on improvement of
public health
SEVENTH Five Year Plan
Its duration was from 1985 to 1990.
For the first time the private sector
got the priority over public sector.
Its growth target was 5.0% but it
achieved 6.0%.
o Generation of employment opportunities
o Increasing economic productivity
o Production of food grain
o Increase in agriculture productivity
o Agriculture
o Agricultural Inputs
o Industrial Performance
o Balance of Payment
o Price Trend
o Employment and Poverty Alleviation
Programme
ANNUAL Plan
 The Eighth Plan could not take off in 1990 due
to the fast changing political situation at the
center and the years 1990–91 and 1991–92 were
treated as Annual Plans.
 The Eighth Plan was finally formulated for
the period 1992–1997.
 2 Annual plans presented.
 Eco. Reform slated.
 Indian currency devaluation.
EIGHTH Five Year Plan
 Its duration was from 1992 to 1997.
 During this plan Narasimha Rao Govt.
launched New Economic Policy of India.
 At that time Dr. Manmohan Singh (later
Prime Minister of India) launched India's
free market reforms that brought the
nearly bankrupt nation back from the
edge.
 It was the beginning of liberalization,
privatization and globalization (LPG) in
India.
 This plan was successful and got annual
growth rate of 6.8% against the target of
5.6%.
o Fuller utilization of manpower by
the turn of the century
o Universalization of elementary
education
o Strengthening the infrastructure in
order to support the growth
processes on a sustainable basis.
o Strengthening in agricultural
productivity
o Growth Rate
o Gross Domestic Savings and
Investment
o Electricity, Gas and Water Supply
o Transport and Communication
o Services Sector
o Sectoral Share in GDP
o Price Behavior's
NINTH Five Year Plan
 Its duration was from 1997 to 2002.
 The Ninth Five-Year Plan came after 50
years of Indian Independence.
 Atal Bihari Vajpayee was the Prime
Minister of India during the Ninth
Five-Year Plan
 The Ninth Five-Year Plan also saw
joint efforts from the public and the
private sectors in ensuring economic
development of the country
 This plan failed to achieve the growth
target of 7% and grow only at the rate
of 6.7%.
o Agricultural and rural development
o Growth and price stability
o Developing self-reliance in terms of agriculture.
o Accelerating the growth rate of the economy
with stable prices;
o Promoting and developing people’s
participatory institutions like Panchayati Raj
Institutions, co-operatives and self-help groups.
o Primary education to all children in the country.
o Checking the growth of population
o The agriculture industry grew at a rate of 2.1%
against the target of 4.2%
o The service industry had a growth rate of
7.8%.
o The Ninth Five-Year Plan achieved a GDP
growth rate of 5.4% against a target of 6.5%
o The service industry had a growth rate of
7.8%.
o An average annual growth rate of 6.7% was
reached.
o The industrial growth in the country was 4.5%
which was higher than that of the target of 3%
TENTH Five Year Plan
Its duration was from 2002 to
2007.
It aims to reduce the poverty ratio
15% by 2012.
Its growth target was 8.0%but it
achieved only 7.2%.
o Improving the quality of life
through better health an
educational facilities and improved
level of consumption
o Aims to double the per capita
income of India in the next 10
years
o Reduction in inequality through
inclusive growth
o Reduction of poverty rate by 5%
by 2007.
o Reduction in gender gaps in
literacy and wage rates by at least
50% by 2007.
o 20-point program was introduced
Eleventh Five Year Plan
 Its duration was from 2007 to 2012.
 It was prepared by the C. Rangarajan.
 Its main theme was “faster and more inclusive
growth”
 Its growth rate target was 8.1% but it achieved
only 7.9%
o Improving quality of education and public
health service
o Strategy of second green revolution
o Generation high quality of job
o Emphasis on social sector and delivery of
service therein.
o Protection of environment
o Increase agriculture growth to 4%.
o Provide clean drinking water for all by
2009
o Reduce total fertility rate to 2.1
o Reduction of gender inequality.
o Environmental sustainability
TWELFTH Five Year Plan
Its duration was from 2012 to
2017.
 But it dissolved in 2014.
Our Prime Minister ended the
five year plan and launched NITI
Aayog.
Its growth rate target was 8.5%
but it achieved only 9% in just
two years.
o Faster, More Inclusive and Sustainable Growth
o To ensure that 50% of the rural population have
accesses toe proper drinking water.
o To remove gender and social gap in school
enrolment
o Banking services to 90% of households.
o To create 50 million new work opportunities in the
non farm sector
o To enhance access to higher education
o The government intends to reduce poverty
by 10% during the 12th Five-Year Plan.
o High-speed railway
o Afforestation
o Carbon emission
o Renewable energy
o Housing
5 year plan
NITI Aayog
 It is a policy think tank of the Government of India,
established with the aim to achieve Sustainable
Development Goals and to enhance cooperative federalism
by fostering the involvement of State Governments of
India in the economic policy-making process using a
bottom-up approach. approach. Its initiatives include "15
year road map", "7-year vision, strategy and action plan",
AMRUT, Digital India, Atal Innovation Mission, Medical
Education Reform, agriculture reforms etc.
KNOWLEDGE AND
INNOVATION HUB
TEAM INDIA HUB
Chairman : Prime Minister
Vice-Chairman : Rajiv Kumar
CEO: Amitabh Kant
Full- Time
Member
Ex- Officio
Member
Governing
Council.
Special
Invitees
 Chairman: Prime Minister
 Vice Chairperson: Rajiv Kumar
 Chief Executive Officer (CEO): Amitabh Kant
 Full-time Members: Bibek Debroy (Economist), V. K. Saraswat (former DRDO Chief), Ramesh Chand (Agriculture Expert) and Dr.
Vinod Paul (Public Health expert)
 Ex-Officio Members: Rajnath Singh, Arun Jaitley, Suresh Prabhu and Radha Mohan Singh
 Governing Council: All Chief Ministers of States (and Delhi and Puducherry) and Lieutenant Governors of remaining Union Territories.
 Special Invitees: Nitin Gadkari, Prakash Javadekar and Thawar Chand Gehlot
 Core Committee: Dr.Somdutta Singh
5 year plan

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Chapter Two2.Meaning and characteristics of taxation

5 year plan

  • 2. Economic Planning means utilization of country’s resources in different development activities in accordance with national propriters.
  • 3.  The Indian economy was premised on the concept of planning.  This was carried through the Five-Year Plans.  The concept of economic planning in India is derived from the Russia (USSR).  The Five-Year Plans, developed, executed, and monitored by the Planning Commission (1951- 2014)  This Carried forward with the Prime Minister as the ex-officio chairman, the commission has a nominated Deputy Chairman, who hold he rank of a Cabinet Minister.
  • 4. GDP Growth Full Employment Equitable Distribution or Equity Modernization Self-Sufficient
  • 5. Five-Year Plans (FYPs) are centralized and integrated national economic programs. . The concept of economic planning in India is derived from the Russia (USSR). Joseph Stalin implemented the first Five Year Plan in the Soviet Union in 1928. Most communist states and several capitalist countries subsequently have adopted them. India launched first five year plan after the Independence in 1951. When the first plan was initiated, the country was battling severe shortage of food grains. Accordingly, the first plan focused on the higher agricultural production as the principal objective
  • 6. FIRST Five year Plan  The first Indian Prime Minister, Jawaharlal Nehru presented the First Five-Year Plan to the Parliament of India. The First Five-year Plan was launched in 1951 which mainly focused in development of the primary sector. The First Five-Year Plan was based on the Harrod–Domar model.  At that time population was increasing more as compared to economic growth. The rate of capital formation was at low level. The per capita income in the country was also very low. “the target growth was 2.1% and the actual growth was 3.6%.
  • 7. o Increase in agricultural production o To reform the country’s economy o To solve the food problem o To raise the standard of living o Equitable distribution of production, income, wealth o To provide social and economic justice o Electrical Equipment o Agricultural Development o Telegraphs and Posts o Evolution of good Irrigation system o Railway Development o Miscellaneous Achievements o Education o Improvement in Roads
  • 8. SECOND Five Year Plan It was made for the duration of 1956 to 1961. It was based on the P.C. Mahalanobis Model. Its main focus was on the industrial development of the country. This plan was successful and achieved growth rate of 4.1%
  • 9. o Increase in industrial production o Development of heavy industry o Sizeable increase in the national income to raise the level of living. o Large expansion of employment opportunities o Reduction of inequalities in income and wealth o More railway lines o Agricultural Development o Power Programs o Industrial Development o 5 steel plant o Land Reform Measures o A Hydro-electric power project
  • 10. THIRD Five Year Plan  It Was made for the duration of 1961-1966  The main target of this plan was to make the economy independent and to reach self active position of take off.  This plan is called ‘Gadgil Yogna’ also.  The target growth rate was 5.6%, but the actual growth rate was 2.4%.  Due to the Indo-Pak war and China war, this plan could not achieve its growth target of 5.6%
  • 11. o Self-sufficient in food grain production o Generation of employment opportunities o Reduction in inequality o Increase agricultural production o Green revolution o Organization formed- Panchayat Zila Parishads o Afforestation o Improvement in roads o Oil conservation o Improvement in railways o Improvement in electrical equipment
  • 12. Three Year Annual Plan  It is also known as Plan Holiday  Due to failure of Third Plan that of the devaluation of rupee(to boost exports) along with inflationary recession led to postponement of Fourth FYP.  Three Annual Plans were introduced in the 1966- 1969 instead. Prevailing crisis in agriculture and serious food shortage necessitated the emphasis on agriculture during the Annual Plans.  During the Annual Plans, the economy absorbed the shocks generated during the Third Plan.
  • 13. Fourth Five Year plan  The duration of plan holiday was from 1969 to 1974.  At this time Indira Gandhi was the prime minister. The Indira Gandhi government nationalized 14 major Indian banks and the Green Revolution in India advanced agriculture.  The main reason behind the plan holiday was the Indo-Pakistan war & failure of third plan.  This plan target was 5.7% but achieved only 3.3% of the target
  • 14. o Accelerating the process of growth o Price stability o Development of human resources in rural areas o Measures to maintain stability in the prices and to set up consistent economic policies which would lead towards the goal of mixed economy o Served as a stepping stone for the economic growth o Agriculture Production o Industrial Development o General Development o 1st super fast train Rajdhani Express was introduced o Madras renamed Tamil Nadu. o India’s first atomic power station
  • 15. FIFTH Five Year Plan The duration of fifth plan was from 1974-1979 During this plan the slogan of “Garibi Hatao” is given during the 1971 elections by Indira Gandhi.  The target growth rate was 4.4% and the actual growth rate was et 4.8%
  • 16. o Expansion of productive employment; o Extended programme of social welfare; o Stress on agriculture, key and basic industries producing goods for mass consumption. o 5.5 per cent overall rate of growth of ‘gross domestic product o Raising the living standards with a focus on weaker sections of the society o Food grain production was above 118 million tons due to the improvement of infrastructural facilities o Agricultural and Social Sector o Industrial Development o General Development
  • 17. Rolling Five Year Plan  Janta Govt. put forward a plan for 1978-1983 emphasizing on employment, in contrast to Nehru Model which the Govt criticized for concentration of power, widening inequality & for mounting poverty . This plan was again rejected by the Indian National Congress government in 1980 and a new Sixth Plan was made. This plan was again rejected by the Indian National Congress government in 1980 and a new Sixth Plan was made. The first plan focused on the annual budget, the second was a plan for a fixed number of years, which may be 3, 4 or 5 years and the Third Plan was a perspective plan for long terms i.e. for 10, 15 or 20 years. Hence there was no fixation of dates for the commencement and termination of the plan in the rolling plans
  • 18. SIXTH Five Year Plan  Its duration was from 1980 to 1985.  It was based on investment yojna, infrastructural changing and trend to growth model.  This marked the beginning of economic liberalization  The National Bank for Agriculture and Rural Development (NABARD) was established for development of rural areas on 12 July 1982 by recommendation of the Shivaraman Committee.  Its growth target was 5.2% but it achieved 5.7%.
  • 19. o A progressive reduction in poverty o Reduction in unemployment o Strengthening the distribution bias of public policies and services in favor of weaker sections of society o A progressive reduction in regional inequalities o Promotion of efficiency in the use of resources and improved productively o A speedy development of indigenous sources of energies o Controlling the growth of population o Horticultural and Plantation Crops o Crop Production and Selected Inputs o Agricultural Credit and Storage Capacity o Animal Husbandry and Dairying o Emphasis on the information technology sector o Self-sufficiency in food o Government investment in the Indian Health sector o Science and technology also made a significant advance o Several successful programs on improvement of public health
  • 20. SEVENTH Five Year Plan Its duration was from 1985 to 1990. For the first time the private sector got the priority over public sector. Its growth target was 5.0% but it achieved 6.0%.
  • 21. o Generation of employment opportunities o Increasing economic productivity o Production of food grain o Increase in agriculture productivity o Agriculture o Agricultural Inputs o Industrial Performance o Balance of Payment o Price Trend o Employment and Poverty Alleviation Programme
  • 22. ANNUAL Plan  The Eighth Plan could not take off in 1990 due to the fast changing political situation at the center and the years 1990–91 and 1991–92 were treated as Annual Plans.  The Eighth Plan was finally formulated for the period 1992–1997.  2 Annual plans presented.  Eco. Reform slated.  Indian currency devaluation.
  • 23. EIGHTH Five Year Plan  Its duration was from 1992 to 1997.  During this plan Narasimha Rao Govt. launched New Economic Policy of India.  At that time Dr. Manmohan Singh (later Prime Minister of India) launched India's free market reforms that brought the nearly bankrupt nation back from the edge.  It was the beginning of liberalization, privatization and globalization (LPG) in India.  This plan was successful and got annual growth rate of 6.8% against the target of 5.6%.
  • 24. o Fuller utilization of manpower by the turn of the century o Universalization of elementary education o Strengthening the infrastructure in order to support the growth processes on a sustainable basis. o Strengthening in agricultural productivity o Growth Rate o Gross Domestic Savings and Investment o Electricity, Gas and Water Supply o Transport and Communication o Services Sector o Sectoral Share in GDP o Price Behavior's
  • 25. NINTH Five Year Plan  Its duration was from 1997 to 2002.  The Ninth Five-Year Plan came after 50 years of Indian Independence.  Atal Bihari Vajpayee was the Prime Minister of India during the Ninth Five-Year Plan  The Ninth Five-Year Plan also saw joint efforts from the public and the private sectors in ensuring economic development of the country  This plan failed to achieve the growth target of 7% and grow only at the rate of 6.7%.
  • 26. o Agricultural and rural development o Growth and price stability o Developing self-reliance in terms of agriculture. o Accelerating the growth rate of the economy with stable prices; o Promoting and developing people’s participatory institutions like Panchayati Raj Institutions, co-operatives and self-help groups. o Primary education to all children in the country. o Checking the growth of population o The agriculture industry grew at a rate of 2.1% against the target of 4.2% o The service industry had a growth rate of 7.8%. o The Ninth Five-Year Plan achieved a GDP growth rate of 5.4% against a target of 6.5% o The service industry had a growth rate of 7.8%. o An average annual growth rate of 6.7% was reached. o The industrial growth in the country was 4.5% which was higher than that of the target of 3%
  • 27. TENTH Five Year Plan Its duration was from 2002 to 2007. It aims to reduce the poverty ratio 15% by 2012. Its growth target was 8.0%but it achieved only 7.2%.
  • 28. o Improving the quality of life through better health an educational facilities and improved level of consumption o Aims to double the per capita income of India in the next 10 years o Reduction in inequality through inclusive growth o Reduction of poverty rate by 5% by 2007. o Reduction in gender gaps in literacy and wage rates by at least 50% by 2007. o 20-point program was introduced
  • 29. Eleventh Five Year Plan  Its duration was from 2007 to 2012.  It was prepared by the C. Rangarajan.  Its main theme was “faster and more inclusive growth”  Its growth rate target was 8.1% but it achieved only 7.9%
  • 30. o Improving quality of education and public health service o Strategy of second green revolution o Generation high quality of job o Emphasis on social sector and delivery of service therein. o Protection of environment o Increase agriculture growth to 4%. o Provide clean drinking water for all by 2009 o Reduce total fertility rate to 2.1 o Reduction of gender inequality. o Environmental sustainability
  • 31. TWELFTH Five Year Plan Its duration was from 2012 to 2017.  But it dissolved in 2014. Our Prime Minister ended the five year plan and launched NITI Aayog. Its growth rate target was 8.5% but it achieved only 9% in just two years.
  • 32. o Faster, More Inclusive and Sustainable Growth o To ensure that 50% of the rural population have accesses toe proper drinking water. o To remove gender and social gap in school enrolment o Banking services to 90% of households. o To create 50 million new work opportunities in the non farm sector o To enhance access to higher education o The government intends to reduce poverty by 10% during the 12th Five-Year Plan. o High-speed railway o Afforestation o Carbon emission o Renewable energy o Housing
  • 34. NITI Aayog  It is a policy think tank of the Government of India, established with the aim to achieve Sustainable Development Goals and to enhance cooperative federalism by fostering the involvement of State Governments of India in the economic policy-making process using a bottom-up approach. approach. Its initiatives include "15 year road map", "7-year vision, strategy and action plan", AMRUT, Digital India, Atal Innovation Mission, Medical Education Reform, agriculture reforms etc.
  • 36. Chairman : Prime Minister Vice-Chairman : Rajiv Kumar CEO: Amitabh Kant Full- Time Member Ex- Officio Member Governing Council. Special Invitees
  • 37.  Chairman: Prime Minister  Vice Chairperson: Rajiv Kumar  Chief Executive Officer (CEO): Amitabh Kant  Full-time Members: Bibek Debroy (Economist), V. K. Saraswat (former DRDO Chief), Ramesh Chand (Agriculture Expert) and Dr. Vinod Paul (Public Health expert)  Ex-Officio Members: Rajnath Singh, Arun Jaitley, Suresh Prabhu and Radha Mohan Singh  Governing Council: All Chief Ministers of States (and Delhi and Puducherry) and Lieutenant Governors of remaining Union Territories.  Special Invitees: Nitin Gadkari, Prakash Javadekar and Thawar Chand Gehlot  Core Committee: Dr.Somdutta Singh