Entrepreneurship 5yr Plan

8/2/2019 Entrepreneurship 5yr Plan

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In the second world war almost all the countries of the world faced a lot of

destruction. They had to face the ravage of many new problems coming out of

war. So, just before the war was over, the Government thought of post-war

reconstruction in their respective countries.

The British Government of India also had such a plan for India. Moreover,India was an undeveloped country. After the freedom, the national

Government of India wanted to uplift it through proper planning. So, the

Government of India introduced five-year plans. The first five-year plan

included almost all the recommendations of the post-war reconstruction

scheme. These five-year plans are approved by the National Planning

Commission.

The Planning Commission was set up in March, 1950. The draft of the first

five-year plan was published in July 1951 and it was approved in December

1951.


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Why 5 Year Plan: Planning without an objective is like driving without any destination.

There are generally two sets of objectives for planning, namely the short-

term objectives and the long-term objectives. While the short-term

objectives vary from plan to plan, depending on the immediate problems

faced by the economy, the process of planning is inspired by certain long

term objectives. In case of our Five Year plans, the long-term objectives

are:

(i) A high rate of growth with a view to improvement in standard of living.

(ii) Economic self-reliance;

(iii) Social justice and

(iv) Modernization of the economy

(v) Economic stability


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How It Affects Our Economy: The Economy of India is the ninth largest in the world by

nominal GDP and the third largest by purchasing power

parity (PPP).

The country is one of the G-20 major economies and a

member of BRICS. In 2011, the country's GDP per capita

(PPP) was $3,703 IMF, 127th in the world,

Thus making a lower-middle income economy. 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 inMarch 2007 and the eleventh plan is currently underway.


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How It Affects Our Entrepreneurship:: Every 5 year Plan has some changes in policies,


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First Five Year Plan(1951-55)

Total budget: 206.8 billion (INR) or USD$23.6 billion.

Objectives the standard of living

Community and agriculture

development Energy and irrigation

Communications andtransport

Industry

Land rehabilitation Social services

Target of GDP growth 2.1 peryear

Achieved had been 3.6% per

year

ACHIEVEMENTS

GDP 3.6% per year

Evolution of good irrigationsystem

improvement in roads

civil aviation

railways

Telegraphs

posts

manufacture of fertilizers

electrical equipment


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Disadvantages

development of only a few industries

private industry had not developed


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Second Five Year Plan

(1956-1961)

OBJECTIVES To increase by 25% the national

income To make the country more

industrialized To increase employment

opportunities so that every citizengets a job

Development of Mining and industry Community and agriculture

development Power and irrigation Social services Communications and transport Miscellaneous

ACHIEVEMENTS

5 steel plants

a hydro-electric power project

production of coal increased

more railway lines

Land reform measures

improved the living standards ofthe people

The large enterprises inseventeen industries werenationalized


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Disadvantages 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 fromshutting down


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OBJECTIVES More stress to agriculture

subsidies

Sufficient help

Effective use of country's resources To increase the national income by

5% per year

To increase the production ofagriculture so that the nation is selfsufficient in food grains

To provide employment opportunitiesfor every citizen of the country

To establish equality among all thepeople of the country

Third Five Year Plan

(1961-1966)

ACHIEVEMENTS Decentralization

Organizations formed Panchayat

Zila Parishads

Laid emphasis on oil conservation irrigation

Afforestation

dry farming

Many fertilizer and cement plants

were built Green Revolution

PMs

Jawaharlal Nehru

Gulzarilal Nanda

Lal Bahadur Shastri


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Problems faced

Sino Indian War, India witnessedincrease in price of products. Theresulting inflation


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4th Five Year Plan(1969 to 1974)

OBJECTIVES

to reform and restructuregovts expenditureagenda( defensebecame one major

expense) To facilitated growth in

exports

to alter the socioeconomic structure ofthe society

ACHIEVEMENTS

Great advancement hasbeen made with regardto India's nationalincome

considered as one of theemerging powers

served as a stepping

stone for the economicgrowth

Food grains productionincreased


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problems

a gap was created between the peopleof the rural areas and those of the urbanareas.

Due to recession, famine and drought,India did not pay much heed to longterm goals


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Fifth Five Year Plan1974 to1979

OBJECTIVES To reduce social, regional,

and economic disparities

To enhance agriculturalproductivity

To check rural and urbanunemployment

To encourage self-employment

Production support policies

in the cottage industrysector

To develop labor intensivetechnological improvements

PROBLEMS The international economy

was in a trouble

Food, oil, and fertilizerswhere prices sky-rocketed

Several inflationarypressures

ACHIEVEMENTS Food grain production was

above 118 million tons due tothe improvement ofinfrastructural facilities

Bombay High had shot up thecommercial production of oil inIndia


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Problems faced

The world economy was in atroublesome state

This had a negative impact on the Indian

economy

Prices in the energy and food sectorskyrocketed and as a consequence

inflation became inevitable


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Sixth Five Year Plan1980 to1985

OBJECTIVES To improve productivity level

To initiate modernization forachieving economic andtechnological self-reliance

To control poverty andunemployment

To develop indigenous energysources and efficient energyusage

To promote improved quality oflife of the citizens

To introduce Minimum NeedsProgram for the poor

To initiate Family Planning

ACHIEVEMENTS

Speedy industrialdevelopment

Emphasis on the information

technology sector self sufficiency in food

science and technology alsomade a significant advance

several successful programs

on improvement of publichealth

government in the Indianhealthcare sector

Government investments inthe Indian healthcare sector


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Problems faced

During this time the Prime Minister wasRajiv Gandhi and hence industrialdevelopment was the emphasis of this plan

some opposed it specially the communistgroups, this slowed down the pace ofprogress.

S th Fi Y Pl


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Seventh Five Year Plan1985 to 1989

OBJECTIVES

Anti-poverty program Improved facilities for education

to girls The government undertook to

increase productivity of

Oilseeds,Fruits,Vegetables

Pulses,cereals,Fish

Egg,Meat,milk.

Communications

Emergence of informatics, andhooking up of

telecommunications withcomputers

Transport

inland waterways, productpipelines, 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 scalefarmers

Making India anIndependent Economy


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Problems

1989-91 was a period of politicalinstability in India and hence no five yearplan was implemented

In 1991, India faced a crisis in foreignexchange(Forex) reserves

Ei hth Fi Y Pl
http://en.wikipedia.org/wiki/Foreign_Exchangehttp://en.wikipedia.org/wiki/Foreign_Exchange


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Eighth Five Year Plan1992 to1997

OBJECTIVES Prioritize the specific sectors which

requires immediate investment

To generate full scale employment

Promote social welfare measureslike improved healthcare, sanitation,communication and provision for

extensive education facilities at alllevels

To check the increasing populationgrowth by creating mass awarenessprograms

To encourage growth anddiversification of agriculture

To strengthen the infrastructuralfacilities

To place greater emphasis on roleof private initiative in the

development of the industrial sector

ACHIEVEMENTS Rise in the employment level

Poverty reduction

Self-reliance on domesticresources

Self-sufficiency in

agricultural production GDP Growth Per Annum

5.6


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ACHIEVEMENTS

Rise in the employment level

Poverty reduction

Self-reliance on domestic resources

Self-sufficiency in agricultural production

GDP Growth Per Annum 5.6


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Ninth Five Year Plan1997 to 2002

OBJECTIVES 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 likeeducation for all, safe drinkingwater, primary health care,transport, energy

to check the growingpopulation increase

to encourage social issueslike women empowerment

to create a liberal market forincrease in privateinvestments

ACHIEVEMENTS

A combined effort of public,private, and all levels ofgovernment

ensured the growth of India'seconomy.

Service sector showed fastgrowth rate

T th Fi Y Pl


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Tenth Five Year Plan(2002-2007)

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,Realestate,Construction,Internal trade

Forests and environment

Science and technology

Special area programs

schooling to be compulsory for children


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Eleventh five year plan

OBJECTIVES Income & Poverty

Education

HealthWomen and Children

Infrastructure

Environment

Documents

Entrepreneurship 5yr Plan