five year plan
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The document outlines the objectives and key aspects of India's 12th Five Year Plan from 2012-2017, which include achieving an average annual GDP growth rate of 8.2%, increasing investment in infrastructure, health, education, and reducing poverty and income inequality. The Plan also aims to boost agriculture, manufacturing, energy, transportation, the environment, and decentralize decision making.
five year plan
- 1. Five year plan 1 Assignment- 2 Five year plans Date of Submission:6August,2015 Submitted by:Sonali Class:BBA Roll No: BBA/13/913 Email:[email protected]
- 2. Five year plan 2 Contents 1 Introduction.....................................................................................................................................3 2 History of Planning in India & Origin of Five Year Plans .............................................................4 2.1 Summary of approved 12th five year plan...............................................................................5 3 Twelfth plan (2012-2017)...............................................................................................................8 4 Objectives of five year plan (2012-2017) .......................................................................................9 4.1 ECONOMIC GROWTH.........................................................................................................9 4.2 AGRICULTURE ..................................................................................................................10 4.3 TRANSPORTATION...........................................................................................................10 4.4 ENVIRONMENT .................................................................................................................10 4.5 DECENTRALIZATION.......................................................................................................11 4.6 TECHNOLOGY ...................................................................................................................11 4.7 HEALTH CARE...................................................................................................................11 4.8 ENERGY ..............................................................................................................................12 4.9 EDUCATION .......................................................................................................................12 5 CONCLUSION.............................................................................................................................13 6 Bibliography .................................................................................................................................14
- 3. Five year plan 3 1 Introduction Indian planning is an open process. Much of the controversy and the debates that accompany the preparation of the plans are public. The initial aggregate calculations and assumptions are either explicitly stated or readily deducible, and the makers of the plans are not only sensitive but responsive to criticism and suggestions from a wide variety of national and international sources. From original formulation through successive modifications to parliamentary presentation, plan making in India has evolved as a responsive democratic political process and the culmination of the same in the final document is an impressive manifestation of the workings of an open society. But by its very nature it also generates many problems from the point of view of mapping an optimal strategy for economic development.
- 4. Five year plan 4 2 History of Planning in India & Origin of Five Year Plans Though the planned economic development in India began in 1951 with the inception of First Five Year Plan, theoretical efforts had begun much earlier , even prior to the independence. Setting up of National Planning Committee by Indian National Congress in 1938 , The Bombay Plan & Gandhian Plan in 1944, Peoples Plan in 1945 (by post war reconstruction Committee of Indian Trade Union), Sarvodaya Plan in 1950 by Jaiprakash Narayan were steps in this direction. Five-Year Plans (FYPs) are centralized and integrated national economic programs. Joseph Stalin implemented the first FYP in the Soviet Union in the late 1920s. Most communist states and several capitalist countries subsequently have adopted them. China and India both continue to use FYPs, although China renamed its Eleventh FYP, from 2006 to 2010, a guideline (guihua), rather than a plan (jihua), to signify the central government’s more hands-off approach to development. After independence, India launched its First FYP in 1951, under socialist influence of first Prime Minister Jawaharlal Nehru. The process began with setting up of Planning Commission in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. The Planning Commission was charged with the responsibility of making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilisation of resources and determining priorities. The first Five-year Plan was launched in 1951 and two subsequent five-year plans were formulated till 1965, when there was a break because of the Indo-Pakistan Conflict. Two successive years of drought, devaluation of the currency, a general rise in prices and erosion of resources disrupted the planning process and after three Annual Plans between 1966 and 1969, the fourth Five-year plan was started in 1969.
- 5. Five year plan 5 The Eighth Plan could not take off in 1990 due to the fast changing political situation at the Centre and the years 1990-91 and 1991-92 were treated as Annual Plans. The Eighth Plan was finally launched in 1992 after the initiation of structural adjustment policies. For the first eight Plans the emphasis was on a growing public sector with massive investments in basic and heavy industries, but since the launch of the Ninth Plan in 1997, the emphasis on the public sector has become less pronounced and the current thinking on planning in the country, in general, is that it should increasingly be of an indicative nature. 2.1 Summary of approved 12th five year plan The government on 4th october approved the 12th five year plan (2012-17) document that seeks to achieve annual average economic growth rate of 8.2 per cent, down from from 9 per cent envisaged earlier, in view of fragile global recovery. The theme of the Approach Paper is “faster, sustainable and more inclusive growth” .According to officials the projected average rate gross capital formation in the 12th Plan is 37 per cent of GDP. The projected gross domestic savings rate is 34.2 per cent of GDP and the net external financing needed for macroeconomic balance has been placed at 2.9 per cent of GDP. During the 11th Plan (2007-12), India has recorded an average economic growth rate of 7.9 per cent. This, however, is lower than the 9 per cent targetted in 11th Plan. Besides other things, the 12th Plan seeks to achieve 4 per cent agriculture sector growth during 2012-17. The growth target for manufacturing sector has been pegged at 10 per cent.The total plan size has been estimated at Rs.47.7 lakh crore, 135 per cent more that for the 11th Plan (2007-12).
- 6. Five year plan 6 The “strategy challenges” refer to some core areas that require new approaches to produce the desired results. These are: 1. Enhancing the Capacity for Growth 2. Enhancing Skills and Faster Generation of Employment 3. Managing the Environment 4. Decentralisation, Empowerment and Information 5. Technology and Innovation 6. Securing the Energy Future for India 7. Accelerated Development of Transport Infrastructure 8. Rural Transformation and Sustained Growth of Agriculture 9. Managing Urbanization 10. Improved Access to Quality Education 11. Better Preventive and Curative Health Care
- 7. Five year plan 7 Highlights of 12th Five Year Plan (2012-17) 1. Average growth target has been set at 8.2 percent 2. Growth rate has been lowered to 8.2 percent from the 9.0 percent projected earlier in view adverse domestic and global situation. 3. Areas of main thrust are-infrastructure, health and education 4. Growth rate has been lowered to 8.2 percent from the 9.0 percent projected earlier in view adverse domestic and global situation. 5. The commission had accepted Finance Minister P. Chidambaram’s suggestion that direct cash transfer of subsidies in food, fertilizers and petroleum be made by the end of the 12th Plan period 6. After the cabinet clearance, the plan for its final approval would be placed before the National Development Council (NDC), which has all chief ministers and cabinet ministers as members and is headed by the Prime Minister 7. Agriculture in the current plan period grew at 3.3 percent, compared to 2.4 percent during the 10th plan period. The growth target for manufacturing sector has been pegged at 10 percent 8. During the 11th Plan period, the average annual growth was 7.9 percent 9. A full Planning Commission chaired by Prime Minister Manmohan Singh on September 15 endorsed the document which has fixed the total plan size at Rs.47.7 lakh crore 10. The 12th Plan seeks to achieve 4 percent agriculture sector growth during the five-year period 11. On poverty alleviation, the commission plans to bring down the poverty ratio by 10 percent. At present, the poverty is around 30 per cent of the population. According to commission Deputy Chairperson Montk Singh Ahluwalia, health and education sectors are major thrust areas and the outlays for these in the plan have been raised. 12. The outlay on health would include increased spending in related areas of drinking water and sanitation.
- 8. Five year plan 8 3 Twelfth plan (2012-2017) The Twelfth Five-Year Plan of the Government of India has decided for the growth rate at 8.2% but the National Development Council (NDC) on 27 Dec 2012 approved 8% growth rate for 12th five- year plan. With the deteriorating global situation, the Deputy Chairman of the Planning Commission Mr Montek Singh Ahluwalia has said that achieving an average growth rate of 9 percent in the next five years is not possible. The Final growth target has been set at 8% by the endorsement of plan at the National Development Council meeting held in New Delhi. "It is not possible to think of an average of 9% (in 12th Plan). I think somewhere between 8 and 8.5 percent is feasible,” Mr Ahluwalia said on the sidelines of a conference of State Planning Boards and departments. The approached paper for the 12th Plan, approved last year, talked about an annual average growth rate of 9%. “When I say feasible... that will require major effort. If you don’t do that, there is no God given right to grow at 8 percent. I think given that the world economy deteriorated very sharply over the last year...the growth rate in the first year of the 12th Plan (2012-13) is 6.5 to 7 percent.” He also indicated that soon he should share his views with other members of the Commission to choose a final number (economic growth target) to put before the country’s NDC for its approval. The government intends to reduce poverty by 10% during the 12th Five-Year Plan. Mr Ahluwalia said, “We aim to reduce poverty estimates by 9% annually on a sustainable basis during the Plan period. Earlier, addressing a conference of State Planning Boards and Planning departments, he said the rate of decline in poverty doubled during the 11th Plan. The commission had said, while using the Tendulkar poverty line, the rate of reduction in the five years between 2004–05 and 2009–10, was about 1.5%points each year, which was twice that when compared to the period between 1993-95 to 2004-05.
- 9. Five year plan 9 4 Objectives of five year plan (2012-2017) India at the time of independence was left with crippling economy by British, which needed attention and well planned strategies to boom again in the global MARKET. The Planning Commission was set up by a Resolution of the Government of India in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. The Planning Commission was charged with the responsibility of making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilisation of resources and determining priorities. Five year plan objectives To deal with disparity of income and wealth Govt. activism required for socially desirable activities with available resources and foreign exchange Govt. intervention required for development of infrastructure Balanced regional development. 4.1 ECONOMIC GROWTH In 12th five year plan, 9% GDP growth is expected. Higher INVESTMENT and fund mobilization will induce market development and employment. Well regulated and integrated markets would generate enough jobs and live hood opportunities. Development through efficient capital markets and public private partnership will further boost the economy and thus may sustain the growth rate of 9 %. Growth of a sector through PPP model would lead to decentralization of economies and inclusion of various sectors, such that a parallel economic development is induced from this multi- sectoral growth approach.
- 10. Five year plan 10 4.2 AGRICULTURE India is now self dependent for domestic food demands as a result of green revolution and previous five year plans. Rural economy growth has to be enhanced by sustained agriculture growth and development of rural areas by providing rural infrastructure and amenities. A balanced regional development can be achieved through agro- dependent sectors. Innovative technologies and open MARKET economies would enhance HDI of rural population. For all perishable products INVESTMENTS and institutional development are more important than subsidies or price support systems. Forest economies and tribal societies need greater protection and promotion 4.3 TRANSPORTATION In order to attain an overall growth urban governance, urban renewal, finance and urban transportation reforms should be focused. Adequate transport facilities would result in efficient distribution network, thereby reducing in accessibility and consequently save the cost involved. Improved connectivity would also help in managing urbanization and reduction of migration in metro cities, leading to development of small and medium town. Energy efficient transport systems needs to be incorporated with emphasis on eco-friendly and renewable resources. 4.4 ENVIRONMENT With the fast pace of industrialisation, India is already loosing area under forest cover rapidly. More human interventions will lead to severe loss of habitat. Environmental degradation and ecological imbalance are the two aspects which result out of development initiatives at local and global levels. Growth of economy without compromising on environment is a key issue to be addressed as, sustainable growth is essential now. Technological advancement, equitable distribution, affordability along with public awareness is major points of concern.
- 11. Five year plan 11 4.5 DECENTRALIZATION Previous five years plans have faced the reluctance of public participation. The 12th five year plan however talks about decentralization, empowerment and information. The policy making process should trickles down to the lowest level of society and more people should have a say in the process. Citizens should be well informed and more powers should be given to the public to efficiently convey the issues by letting people know their powers and rights. 4.6 TECHNOLOGY Globalization has led to rapid industrialization and competition in the market. Technological and organizational innovation will help to enhance productivity and efficiency. Technological innovations leads to faster results and organizational innovation would help in efficient utilization of resources, facilitated by providing incentives and tax subsidies. 4.7 HEALTH CARE Healthcare conditions are improving in the country but its affordability and accessibility is still an area to be focused on. Curative and preventive healthcare would help in increasing general quality of life. Focus on women and children are essential but importance to elderly class and handicaps in order to achieve inclusive healthcare development is essential. Shortage of qualified medical personnel at all levels is a major hurdle in improving the outreach of the healthcare system, especially the public health facilities
- 12. Five year plan 12 4.8 ENERGY Energy being the wheel of growth has to be focused to ensure faster and inclusive growth. Dependency on traditional energy resources has to be reduced with more emphasis on domestic renewable energy production. Use of Non Renewable Sources of Energy being restricted to priority based industries while promoting Non-Conventional Energy Resources for rest of the sector. Nuclear power program must continue, with necessary safety review. Active efforts need to be made to allay the apprehensions of people regarding the safety of nuclear power plants. Solar mission is seriously underfunded and requires more support. Wind power too requires greater support, especially for off-shore locations which have not been sufficiently explored 4.9 EDUCATION Education being a concerned sector in five year plans has to be now emphasized more on accessibility, affordability and quality. The employability is to be increased for optimum exploitation of human resources. Improvement in educational infrastructure, research and developments. Vocational education will need to be given greater emphasis and made more attractive. Skill Development needs a major focus at all levels.
- 13. Five year plan 13 5 CONCLUSION The economy will enter the 12th plan period in an environment of great promise but also one that presents major challenges. India has done well on the growth front, but not so well on inclusion. Much of what needs to be done to accelerate GDP growth to 9% so will be done by the private sector, but the central and state governments have a crucial role to play in providing a policy environment that is seen as investor friendly and is supportive of inclusive growth. Finally, the efficiency in implementation of projects on the ground needs to be greatly improved. 15. • Most of what needs to be done in this context rests with state governments but the central government must find ways of improving project design, prioritising resources to FUND well designed interventions that work, devolving resources to lower levels and helping build capacity. Evidence-based evaluation is critical for redesign and prioritisation
- 14. Five year plan 14 6 Bibliography http://www.simplydecoded.com/2012/10/13/summary-of-approved-12th-five-year-plan/ http://mospi.nic.in/Mospi_New/upload/SYB2014/CH-7- FIVE%20YEAR%20PLAN/Five%20Year%20Plan%20writeup.pdf https://en.wikipedia.org/wiki/Five-Year_Plans_of_India http://www.currentaffairs4examz.com/2013/07/five-year-plans-in-india-overview-as-pdf.html http://www.slideshare.net/Sweetp999/current-5-year-plan2012-17