2. A Plan..A Plan is a deliberate attempt to spell out how
theresources of a country should be put to use. It has some general
and specific goals, which are to beachieved within a specific
period of time. The general goals of a Plan are growth,
modernization,full employment, self-reliance and equity. But all
Plansmay not give equal importance to all of them. 3. Economic
Planning in IndiaPlanning without an objective is like driving
without anydestination.Two sets of objectives for planning, namely
the short-termobjectives and the long-term objectives. While the
short-termobjectives vary from plan to plan, depending on
theimmediate problems faced by the economy, the process ofplanning
is inspired by certain long term objectives.The long-term
objectives 4. The long-term objectives are:A high rate of
growthEconomic self-relianceSocial justice andModernization of the
economyEconomic stability 5. Planning commission of India The
Planning Commission was set up in March, 1950 bya Resolution of the
Government of India. The economy of India is based on planning
through itsfive-year plans, developed, executed and monitored by
plansthe Planning Commission . With the Prime Minister as theex
official Chairman, the commission has a nominatedDeputy Chairman,
who has rank of a Cabinet minister. Montek Singh Ahluvaliya is
currently the DeputyChairman of the Commission. The tenth plan
completedits term in March 2007 and the eleventh plan is
currentlyunderway. 6. First Five-Year Plan (19511956)The first
Indian Prime Minister, Jawaharlal Nehru presented thefirst
five-year plan to the Parliament of India on December 8, 1951 The
plan addressed, mainly, the agrarian sector,
includingsectorinvestments in dams and irrigation. The total
planned budget of 2069 crore was allocated to sevenbroad
areas:a)irrigation and energy (27.2 percent),b)agriculture and
community development (17.4 percent), 7. Continued..a) transport
and communications (24 percent),b) industry (8.4 percent),c) social
services (16.64 percent),d) land rehabilitation (4.1 percent),e)
for other sectors and services (2.5 percent). The target growth
rate was 2.1% annual gross domestic product (GDP) growth; the
achieved growth rate was 3.6%. Many irrigation projects were
initiated during this period, including the Bhakra Dam and Hirakud
Dam. 8. Second Five-Year Plan (19561961)The second five-year plan
focused on industry, especially heavyindustry.industryDomestic
production of industrial products was encouraged,particularly in
the development of the public sector.The plan attempted to
determine the optimal allocation ofinvestment between productive
sectors in order to maximizelong-run economic growth. 9.
Continued..The total amount allocated under the second five year
plan inIndia was Rs. 4,800 crore. This amount was allocated
amongvarious sectors:a)Power and irrigationb)Social
servicesc)Communications and transportd)MiscellaneousTarget
Growth:4.5% Growth achieved:4.0% 10. Third Five-Year Plan
(19611966) The third plan stressed onagricultureandimprovement in
the production of wheat. The construction of dams continued. Many
cement and fertilizer plants were also built.Punjab began producing
an abundance of wheat.Many primary schools have been started in
ruralareas. State electricity boards and state secondaryeducation
boards were formed. Sino-Indian War of 1962 exposed weaknesses
inthe economy so the target growth rate ofGDP(gross domestic
product)was 5.6 percent. The 11. Fourth Five-Year Plan (19691974)
At this time Indira Gandhi was the Prime Minister. The Indira
Gandhi government nationalized 14 majorIndian banks and the Green
Revolution in India advancedagriculture. Target Growth: 5.7% Actual
Growth: 3.30% 12. Fifth Five-Year Plan (19741979) Stress was by
laid on employment, poverty alleviation,and justice. The plan also
focused on self-reliance in agriculturalproduction and defense.
Electricity Supply Act was enacted in 1975, whichenabled the
Central Government to enter into powergeneration and transmission.
The Indian national highway system was introduced andmany roads
were widened to accommodate the increasingtraffic. Tourism also
expanded. Target Growth: 4.4% Actual Growth: 5.0 13. Sixth
Five-Year Plan (19801985) The sixth plan also marked the beginning
of economicliberalization. Price controls were eliminated and
rationshops were closed. This led to an increase in food prices and
an increase inthe cost of living. This was the end of Nehruvian
Plan and Rajiv Gandhiwas prime minister during this period. Family
planning was also expanded in order to preventoverpopulation.
Target Growth: 5.2% Actual Growth: 5.4% 14. Seventh Five-Year Plan
(19851989)The plan laid stress on improving the productivity level
of industries by upgrading of technology.The main objectives of the
7th five year plans were to establish growth in areas of increasing
economic productivity, production of food grains, and generating
employment .The thrust areas of the 7th Five year plan have been
enlisted below:a) Social Justiceb) Removal of oppression of the
weakc) Using modern technology 15. Continued..a) Agricultural
developmentb) Anti-poverty programsc) Full supply of food,
clothing, and shelterd) Increasing productivity of small and large
scale farmerse) Making India an Independent EconomyBased on a
15-year period of striving towards steady growth, the 7th Plan was
focused on achieving the pre- requisites of self-sustaining growth
by the year 2000.The Plan expected a growth in labour force of 39
million people and employment was expected to grow at the rate of 4
percent per year.Target Growth: 5.0% Actual Growth: 5.7% 16. Period
Between (19891992) 1989-91 was a period of political instability in
India and hence no fiveyear plan was implemented. Between 1990 and
1992, there were onlyAnnual Plans. In 1991, India faced a crisis in
Foreign Exchange (Forex) reserves, leftwith reserves of only about
$1 billion (US). Thus, under pressure, thecountry took the risk of
reforming the socialist economy.P.V. Narasimha Rao (28 June 1921 23
December 2004), also calledFather of Indian Economic Reforms, was
the twelfth Prime Minister of theRepublic of India and head of
Congress Party, and led one of the mostimportant administrations in
Indias modern history overseeing a majoreconomic transformation and
several incidents affecting national security. At that time Dr.
Manmohan Singh launched Indias free market reformsthat brought the
nearly bankrupt nation back from the edge. It was thebeginning of
privatization and liberalization in India. 17. Eighth Five-Year
Plan (19921997) Modernization of industries was a major highlight
of the EighthPlan. Under this plan, the gradual opening of the
Indian economy wasundertaken to correct the burgeoning deficit and
foreign debt. The major objectives included, controlling population
growth,poverty reduction, employment generation, strengthening
theinfrastructure, Institutional building, tourism management,Human
Resource development, Involvement of Panchayat raj,Nagar Palikas,
N.G.OS and Decentralization and peoplesparticipation.Energy was
given priority with 26.6% of the outlay An average annual growth
rate of 6.78% against the target5.6%[5] was achieved 18. Ninth
Five-Year Plan (19972002)The main objectives of the Ninth Five Year
Plan of India are:a) to prioritize agricultural sector and
emphasize on the rural developmentb) to generate adequate
employment opportunitiesc) to stabilize the prices in order to
accelerate the growth rate of the economyd) to provide for the
basic infrastructural facilities like education for all, safe
drinking water, primary health care, transport, energye) to
encourage social issues like women empowerment,f) to create a
liberal market for increase in private investments the growth rate
was 5.35 per cent, a percentage point lower than the target GDP
growth of 6.5 per cent 19. Tenth Five-Year Plan (20022007)
Reduction of poverty ratio by 5 percentage points by2007. Providing
gainful and high-quality employment at leastto the addition to the
labour force. Reduction in gender gaps in literacy and wage rates
by atleast 50% by 2007. Cleaning of all major polluted rivers by
2007 and othernotified stretches by 2012. Target growth:8.1% Growth
achieved:7.7% 20. Eleventh Five-Year Plan (20072012)The eleventh
plan has the following objectives:Income & Povertya)Accelerate
GDP growth from 8% to 10% and thenmaintain at 10% in the 12th Plan
in order to double percapita income by 201617b)Increase
agricultural GDP growth rate to 4% per year toensure a broader
spread of benefitsc)Create 70 million new work
opportunities.d)Reduce educated unemployment to below 5%.e)Reduce
the headcount ratio of consumption poverty by 10percentage points.
21. Continued...Educationa) Reduce dropout rates of children from
elementary school from 52.2% in 200304 to 20% by 201112b) Develop
minimum standards of educational attainment in elementary school,
and by regular testing monitor effectiveness of education to ensure
qualityc) Increase literacy rate for persons of age 7 years or
above to 85%d) Lower gender gap in literacy to 10 percentage
pointe) Increase the percentage of each cohort going to higher
education from the present 10% to 15% by the end of the plan 22.
ContinuedHealtha) Reduce infant mortality rate to 28 and maternal
mortality ratio to 1 per 1000 live birthsb) Reduce Total Fertility
Rate to 2.1c) Provide clean drinking water for all by 2009 and
ensure that there are no slip-backsd) Reduce malnutrition among
children of age group 03 to half its present level 23.
ContinuedWomen and Childrena) Raise the sex ratio for age group 06
to 935 by 201112 and to 950 by 201617b) Ensure that at least 33
percent of the direct and indirect beneficiaries of all government
schemes are women and girl childrenc) Ensure that all children
enjoy a safe childhood, without any compulsion to work 24.
ContinuedInfrastructurea) Ensure electricity connection to all
villages and BPL households by 2009 and round-the-clock power.b)
Ensure all-weather road connection to all habitation with
population 1000 and above (500 in hilly and tribal areas) by 2009,
and ensure coverage of all significant habitation by 2015c) Connect
every village by telephone by November 2007 and provide broadband
connectivity to all villages by 2012d) Provide homestead sites to
all by 2012 and step up the pace of house construction for rural
poor to cover all the poor by 201617 25. ContinuedEnvironmenta)
Increase forest and tree cover by 5 percentage points.b) Attain WHO
standards of air quality in all major cities by 201112.c) Treat all
urban waste water by 201112 to clean river waters.d) Increase
energy efficiency by 20 % Target growth:8.33% Growth achieved:
5.3%
