The Five Year Plans
The
development plans are drawn by the Planning Commission to establish India’s
economy on a socialistic pattern in successive phases of five year
Periods-called the Five Year Plans.
Major Bodies
Behind the Making of Five Year Plans
The
organisation was set up to formulate basic economic policies, draft plans and
watch its progress and implementation. It consists of:
(I) Planning
Commission of India
(ii)
National Planning Council
(iii)
National Development Council and State Planning Commissions
DETAILS OF
THE FIVE YEAR PLANS
FIRST FIVE YEAR PLAN (1951-56)
In July
1951, the Planning Commission issued the draft outline of the First Five Year
Plan for the period April 1951 to March 1956. It was presented to the
Parliament in December 1952. In the First Plan, agriculture received the main
thrust, for sustaining of growth and development of industries which would not
be possible without a significant rise in the yield of raw materials and food.
Objectives:
i) To
increase food production.
ii) To fully
utilise available raw materials.
iii) To
check inflationary pressure.
Outlay: The
total proposed outlay was Rs. 3,870 crore.
SECOND FIVE YEAR PLAN (1956-61)
The main
objective was to launch upon industrialisation and strengthen the industrial
base of the economy. It was in this light that the 1948 Industrial Policy
Resolution was revised and a new resolution of 1956 was adopted. The Second
Plan started with an emphasis on the expansion of the public sector and aimed
at the establishment of a socialistic pattern of society.
Objectives:
i) A
sizeable increase in national income so as to raise the level of living.
ii) Rapid
industrialisation of the country with particular emphasis on the development of
basic and key industries.
Outlay: The
Second Plan proposed a total public sector outlay of Rs. 4,800 crores though
actual outlay was only Rs. 4,672 crore.
THIRD FIVE YEAR PLAN (1961-66)
In the third
Plan, the emphasis was on long-term development. The Third Plan report stated
that during the five-year period concerned, the Indian economy “must not only
expand rapidly but, at the same time, become self-reliant and self-generating.”
Objectives:
i) An
increase in national income of more than 5 per cent annually. The investment
pattern laid down must be capable of sustaining this growth rate in the
subsequent years.
ii) An
increase in the agricultural produce and to achieve self sufficiency by
increasing food grain production.
iii) Greater
equality of opportunities, more even distribution of economic power and
reducing wealth and income disparities.
FOURTH FIVE YEAR PLAN (1969-74)
After the
‘Plan Holiday’, the Fourth Plan was begun in 1969.
Objectives:
i) To
achieve stability and progress towards self-reliance.
ii) To
achieve an overall rate of growth of 5.7 per cent annually.
iii) To
raise exports at the rate of 7 per cent annually.
Outlay: The
total proposed outlay was Rs. 24,880 crore, which included Rs. 15,900 crores as
public sector outlay and Rs. 8,980 crore as private sector outlay.
FIFTH FIVE YEAR PLAN (1974-79)
The Plan was
formulated against the background of sever inflationary pressure.
Objectives: In addition to removal of poverty
and attainment of self-reliance, the Fifth Plan had the following major
objectives.
i) 5.5 per
cent overall rate of growth in Gross Domestic objectives.
ii)
Expansion of productive employment and fuller utilisation of existing skills
and equipment.
iii) A
national programme for minimum needs and extended programmes of social welfare.
Outlay: A
total outlay of Rs. 53,410 crore was proposed for the Fifth Plan.
SIXTH FIVE YEAR PLAN (1980-85)
The draft of
the Sixth Five Year Plan (1978-1983) was presented in 1978. However, the plan
was terminated with the change of Government in January 1980. The new Sixth
Five Year Plan was implemented in April 1980.
Objectives:
i) To
eliminate unemployment and underemployment.
ii) To raise
the standard of living of the poorest of masses.
iii) To
reduce disparities in income and wealth.
Outlay: The
proposed outlay for the Sixth Plan totalled Rs.1,
58, 710 crore.
SEVENTH FIVE YEAR PLAN (1985-90)
The draft of
the Seventh Plan was approved on November 9, 1985 by the National Development
Council. The plan was part of the long-term plan for the period of 15 years.
Objectives:
i)
Decentralisation of planning and full public participation in development.
ii) The
maximum possible generation of productive employment.
iii) Removal
of poverty and reduction in income disparities.
EIGHTH FIVE YEAR PLAN (1992-97)
The Eighth
Plan proposed a growth rate of 5.6 per cent per annum on an average during the
plan period. The Eighth Plan focused on (i) clear prioritisation of
sectors/projects for investment in order to facilitate implementation of the
policy initiatives taken in the areas of fiscal, trade and industrial sectors
and human development.
Objectives:
i) Generation
of adequate employment of achieve near full employment level by the turn of the
century.
ii)
Containment of population growth through people’s active co-operation and an
effective scheme of incentives and disincentives.
iii)
Universalisation of elementary education and complete eradication of illiteracy
among the people in the age group of 15 to 35 years.
THE NINTH FIVE-YEAR PLAN (1997-2002)
It began on
April 1, 1997. The Ninth Plan was the first concrete attempt to translate the
programme of economic reforms and the New Economic Policy within the framework
of an indicative Plan. The Approach Paper to the Ninth Plan (1997-2002) was
approved by the N.D.C. on 16th January, 1997.
Objectives:
i.) Priority
to agriculture and rural development
ii.)
Accelerating growth rate of economy
iii.) Food
and nutritional security for all
iv.)
Containing growth rate of population
v.)
Empowerment of women and socially disadvantaged groups such as SC/ST, backward
classes and minorities.
vi.)
Promoting and developing participatory institutions like “Panchayati Raj”
institutions, co-operatives and self-help groups.
TENTH FIVE YEAR PLAN (2002-07)
On December
21, 2002, the Tenth Five Year Plan was approved by the National Development
Council (NDC). The Plan has further developed the NDC mandated objectives, of
doubling per capita income in 10 years, and achieving a growth rate of 8% of
GDP per annum. An 8% growth rate is considered necessary for achieving the
social and economic targets of Tenth Plan Keeping in mind decadal growth
performance and the steady acceleration that the country has recorded in growth
over the past two decades, it is a realisable target. The plan has a number of
new features, such as, for the first time
(a) It
recognises the rapid growth of labour force over the next decade
(b)
Addresses the issue of poverty and the unacceptably low levels of social
indicators
(c) Adopted
a “differential development strategy” to equate national targets into balanced
regional development as there is vast difference in the potentials and
constraints of each state
(d)
Recognises that the governance is perhaps one of the most important factors for
ensuring realisation of the Plan
(e)
Identifies measures to improve efficiency, unleash entrepreneurial energy, and
promote rapid and sustainable growth
(f) Proposes
major reforms for agricultural sector making ‘agriculture’ the core element of
the Plan.
Since
economic growth is not the only objective, the Plan aims at harnessing the
benefits of growth to improve the quality of life of the people by setting the
following key targets:
1. All
children to be in school by 2003 and all children to complete five years of
schooling by 2007
2. Reduction
in poverty ratio from 26% to 21%
3. Growth in
gainful employment to, at least, keep pace with addition to the labour force
4. Decadal
population growth to reduce from 21.3% in 1991-2001 to 16.2% by 2001-11
5. Reducing
gender gaps in literacy and wage rates by 50%
6. Literacy
rate to increase from 65% in 1999-2000 to 75% in 2001
7. Infant
Mortality Rate (IMR) to be reduced from 72 in 1999-2000, to 45 in 2007
8. .Maternal
Mortality Rate (MMR) to be reduced from 4 per 1000 in 1999-2000 to 2 per 1000
in 2007
9. Providing
portable drinking water in all villages
10. Cleaning
of major polluted river stretches
11. Increase
in forest/tree cover from 19% in 1999-2000 to 25% in 2007
ELEVENTH PLAN (2007-2012)
The United
Progressive Alliance government issued a paper in the eleventh plan titled “Towards
faster and more inclusive growth.” According to the approach paper, the
monitorable targets of five-year plan are:
1. GDP
growth rate to be increased to 10% by the end of the plan;
2. Farm
sector growth to be increased to 4%;
3. Creation
of seven crore job opportunities;
4. Reduce
educated unemployed youth to below 5 percent
5. Infant
mortality rates to be reduced to 28 per 1000 births;
6. Maternal
death rates to be reduced to 1 per 1000 births;
7. Clean
drinking water to all by 2009;
8. Improve
sex ratio to 935 by 2011-12 and to 950 by 2016-17;
9. Ensure
electricity connection to all villages and broadband over power lines (BPL)
households by 2009
10. Roads to
all villages that have a population of 1000 and above by 2009;
11. Increase
forest and tree cover by 5%;
12. Achieve
the World Health Organization standard air quality in major cities by 2011-12;
13. Treat
all urban wastewater by 2011-12 to clean river waters;
14. Increase
energy efficiency by 20 percent by 2016-17
