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Plan Notes: Summary: Five Year Plans in India

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Summary: Five Year Plans in India

Plan

Notes
It was based on Harrod-Domar Model.
Community Development Program launched in 1952

First Plan
(1951 - 56)

Focus on agriculture, price stability, power and transport


It was a successful plan primarily because of good
harvests in the last two years of the plan
Also called Mahalanobis Plan named after the well known
economist
Focus - rapid industrialization

Second Plan
(1956 - 61)
Target Growth:
4.5% Actual
Growth: 4.27%

Advocated huge imports through foreign loans.


Shifted basic emphasis from agriculture to industry far
too soon.
During this plan, prices increased by 30%, against a
decline of 13% during the First Plan
At its conception, it was felt that Indian economy has
entered a take-off stage. Therefore, its aim was to make
India a 'self-reliant' and 'self-generating' economy.

Third Plan
(1961 - 66)
|Target Growth:
5.6% Actual
Growth: 2.84%

Based on the experience of first two plans, agriculture


was given top priority to support the exports and
industry.
Complete failure in reaching the targets due to
unforeseen events - Chinese aggression (1962), Indo-Pak
war (1965), severe drought 1965-66

Three Annual Plans Prevailing crisis in agriculture and serious food shortage
(1966-69) Plan necessitated the emphasis on agriculture during the

Annual Plans

During these plans a whole new agricultural strategy was


implemented. It involving wide-spread distribution of
high-yielding varieties of seeds, extensive use of
fertilizers, exploitation of irrigation potential and soil
holiday for 3years. conservation.
During the Annual Plans, the economy absorbed the
shocks generated during the Third Plan
It paved the path for the planned growth ahead.
Main emphasis was on growth rate of agriculture to
enable other sectors to move forward
Fourth Plan
(1969 - 74)
Target Growth:
5.7% Actual
Growth: 3.30%

First two years of the plan saw record production. The


last three years did not measure up due to poor
monsoon.
Influx of Bangladeshi refugees before and after 1971
Indo-Pak war was an important issue
The fifth plan was prepared and launched by D.D. Dhar.

Fifth Plan
(1974-79)
Target Growth:
4.4% Actual
Growth: 3.8

It proposed to achieve two main objectives: 'removal of


poverty' (Garibi Hatao) and 'attainment of self reliance'
Promotion of high rate of growth, better distribution of
income and significant growth in the domestic rate of
savings were seen as key instruments
The plan was terminated in 1978 (instead of 1979) when
Janta Party Govt. rose to power.

Rolling Plan
(1978 - 80)

There were 2 Sixth Plans. Janta Govt. put forward a plan


for 1978-1983. However, the government lasted for only
2 years. Congress Govt. returned to power in 1980 and
launched a different plan.

Sixth Plan
(1980 - 85)
Target Growth:
5.2% Actual
Growth: 5.66%

Seventh Plan
(1985 - 90)
Target Growth:
5.0% Actual
Growth: 6.01%

Focus - Increase in national income, modernization of


technology, ensuring continuous decrease in poverty and
unemployment, population control through family
planning, etc.

Focus - rapid growth in food-grains production, increased


employment opportunities and productivity within the
framework of basic tenants of planning.
The plan was very successful, the economy recorded 6%
growth rate against the targeted 5%.
The eighth plan was postponed by two years because of
political uncertainty at the Centre
Worsening Balance of Payment position and inflation
during 1990-91 were the key issues during the launch of
the plan.

Eighth Plan
(1992 - 97)

The plan undertook drastic policy measures to combat


the bad economic situation and to undertake an annual
average growth of 5.6%
Some of the main economic outcomes during eighth plan
period were rapid economic growth, high growth of
agriculture and allied sector, and manufacturing sector,
growth in exports and imports, improvement in trade and
current account deficit.

Ninth Plan
(1997- 2002)
Target Growth:
6.5% Actual
Growth: 5.35%
Tenth Plan
(2002 - 2007)

It was developed in the context of four important


dimensions: Quality of life, generation of productive
employment, regional balance and self-reliance.

Goals:
To achieve 8% GDP growth rate
Reduction of poverty ratio by 5 percentage points by
2007.

Providing gainful high quality employment to the addition


to the labour force over the tenth plan period.
Universal access to primary education by 2007.
Reduction in gender gaps in literacy and wage rates by
atleast 50% by 2007.
Reduction in decadal rate of population growth between
2001 and 2011 to 16.2%.
Increase in literacy rate to 72% within the plan period
and to 80% by 2012.
Reduction of Infant Mortality Rate (IMR) to 45 per 1000
live births by 2007 and to 28 by 2012.
Increase in forest and tree cover to 25% by 2007 and
33% by 2012.
All villages to have sustained access to potable drinking
water by 2012.
Cleaning of all major polluted rivers by 2007 and other
notified stretches by 2012.
Eleventh Plan
(2007 - 2012)

Goals:
Accelerate GDP growth from 8% to 10%. Increase
agricultural GDP growth rate to 4% per year.
Create 70 million new work opportunities and reduce
educated unemployment to below 5%.
Raise real wage rate of unskilled workers by 20 percent.
Reduce dropout rates of children from elementary school
from 52.2% in 2003-04 to 20% by 2011-12.
Increase literacy rate for persons of age 7 years or above

to 85%.
Lower gender gap in literacy to 10 percentage point.
Increase the percentage of each cohort going to higher
education from the present 10% to 15%.
Reduce infant mortality rate to 28 and maternal mortality
ratio to 1 per 1000 live births
Reduce Total Fertility Rate to 2.1
Provide clean drinking water for all by 2009.
Reduce malnutrition among children between 0-3 years
to half its present level. Reduce anaemia among women
and girls by 50%.
Raise the sex ratio for age group 0-6 to 935 by 2011-12
and to 950 by 2016-17
Ensure that at least 33 percent of the direct and indirect
beneficiaries of all government schemes are women and
girl children
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 2015
Connect every village by telephone by November 2007
and provide broadband connectivity to all villages by
2012
Increase forest and tree cover by 5 percentage points.
Attain WHO standards of air quality in all major cities by
2011-12.
Treat all urban waste water by 2011-12 to clean river
waters.
Increase energy efficiency by 20 percentage points by

2016-17.

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