- Five-year plans of India
economy of Indiais based in part on planning through its five-year plans, developed, executed and monitored by the Planning Commission. With the Prime Minister as the " ex officio" Chairman, the commission has a nominated Deputy Chairman, who has rank of a Cabinet minister. Montek Singh Ahluwaliais currently the Deputy Chairman of the Commission. The tenth plan completed its term in March 2007 and the eleventh plan is currently underway.
First plan (1951-1956)
The first Indian Prime Minister,
Jawaharlal Nehrupresented the first five-year plan to the Parliament of Indiaon December 8, 1951. The total plan budget of 206.8 billion INR (23.6 billion USD in the 1950 exchange rate) was allocated to seven broad areas: irrigationand energy(27.2 percent), agricultureand community development(17.4 percent), transportand communications (24 percent), industry(8.4 percent), social services(16.64 percent), land rehabilitation4.1 percent), and other (2.5 percent).
The target growth rate was 2.1 percent annual
gross domestic product(GDP) growth; the achieved growth rate was 3.6 percent. During the first five-year plan the net domestic productwent up by 15 percent. The monsoons were good and there were relatively high crop yields, boosting exchange reserves and per capita income, which went up 8 percent. Lower increase of per capita income as compared to national income was due to rapid population growth. Many irrigation projects were initiated during this period, including the Bhakra Damand Hirakud Dam. The World Health Organization, with the Indian government, addressed children's health and reduced infant mortality, contributing to population growth.
At the end of the plan period in 1956, five
Indian Institutes of Technology(IITs) were started as major technical institutions. University Grant Commission was set up to take care of funding and take measures to strengthen the higher education in the country. Contracts were signed to start five steelplants; however these plants did not come into existence until the middle of the next five-year plan.
econd plan (1956-1961)
The second five-year plan focused on industry, especially
heavy industry. Domestic production of industrial products was encouraged, particularly in the development of the public sector. The plan followed the Mahalanobis model, an economic developmentmodel developed by the Indian statistician Prasanta Chandra Mahalanobisin 1953. The plan attempted to determine the optimal allocation of investment between productive sectors in order to maximise long-run economic growth .
The Atomic Energy Commission was formed in 1957 with
Homi J. Bhabhaas the first chairman. The Tata Institute of Fundamental Researchwas established as a research institute. In 1957 a talent search and scholarshipprogram was begun to find talented young students to train for work in nuclear power.
Third plan (1961-1966)
The third plan stressed on agriculture and improving production of rice, but the brief
Sino-Indian Warin 1962 exposed weaknesses in the economy and shifted the focus towards defense. In 1965-1966, the Green Revolution in Indiaadvanced agriculture. The war led to inflation and the priority was shifted to price stabilization. The construction of dams continued. Many cementand fertilizerplants were also built. Punjab begun producing an abundance of wheat.
State electricity boards and state secondary education boards were formed. States were made responsible for secondary and
higher education. State road transportation corporations were formed and local road building became a state responsibility. Gross Domestic Productrate during this duration was lower at 2.7% due to 1962 Sino-Indian Warand Indo-Pakistani War of 1965.Fact|date=June 2008
Fourth plan (1969-1974)
At this time
Indira Gandhiwas the Prime Minister. The Indira Gandhi government nationalized 19 major Indian banks. In addition, the situation in East Pakistan(now independent Bangladesh) was becoming dire as the Indo-Pakistani War of 1971and Bangladesh Liberation Wartook place.
Funds earmarked for the industrial development had to be used for the war effort. India also performed the
Smiling Buddhaunderground nuclear test in 1974, partially in response to the United Statesdeployment of the Seventh Fleet in the Bay of Bengalto warn India against attacking West Pakistanand widening the war.
Fifth plan (1974-1979)
Stress was laid on
employment, povertyalleviation, and justice. The plan also focused on self-reliancein agricultural production and defense. In 1978 the newly elected Morarji Desaigovernment rejected the plan.Electricity Supply Act was enacted in 1975, which enabled the Central Government to enter into power generation and transmission.Fact|date=June 2008
ixth plan (1980-1985)
Called the Janata government plan, the sixth plan marked a reversal of the Nehruvian model.
Rajiv Gandhiwas elected as the prime minister, the young prime minister aimed for rapid industrial development, especially in the area of information technology. Progress was slow, however, partly because of caution on the part of labor and communist leaders.
The Indian national highway system was introduced for the first time and many roads were widened to accommodate the increasing
traffic. Tourism also expanded.
The sixth plan also marked the beginning of
economic liberalization. Price controls were eliminated and ration shops were closed. This led to an increase in food prices and an increased cost of living. Family planningalso was expanded in order to prevent overpopulation. In contrast to China's harshly-enforced one-child policy, Indian policy did not rely on the threat of force. More prosperous areas of India adopted family planning more rapidly than less prosperous areas, which continued to have a high birth rate.
eventh plan (1985-1989)
The Seventh Plan marked the comeback of the Congress Party to power. The plan lay stress on improving the productivity level of industries by upgradation of
Period between 1989-91
1989-91 was a period of political instability in India and hence no five year plan was implemented. Between 1990 and 1992, there were only Annual Plans. In 1991, India faced a crisis in
Foreign Exchange(Forex) reserves, left with reserves of only about $1 billion (US). Thus, under pressure, the country took the risk of reforming the socialist economy. P.V. Narasimha Rao)(28 June 1921 – 23 December 2004) also called Father of Indian Economic Reforms was the twelfth Prime Minister of the Republic of India and head of Congress Party, and led one of the most important administrations in India's modern history overseeing a major economic transformation and several incidents affecting national security. At that time Dr. Manmohan Singh(currently, Prime Minister of India) launched India's free market reforms that brought the nearly bankrupt nation back from the edge. It was the beginning of privatizationand liberalizationin India.
Eighth plan (1992-1997)
Modernizationof industries was a major highlight of the Eighth Plan. Under this plan, the gradual opening of the Indian economy was undertaken to correct the burgeoning deficitand foreign debt. Meanwhile India became a member of the World Trade Organizationon 1 January 1995.This plan can be termed as Rao and Man mohan model of Economic development.The major objectives included, containing population growth,poverty reduction,employment generation,strengthening the infrastructure,Institutional building, Human Resource development,Involvement of Panchayat raj,Nagarapalikas,N.G.OSand Decentralisation and peoples participation.Energy was given prority with 26.6% of the outlay.An average annual growth rate of 6.7%against the target 5.6% was achieved.
Ninth plan (1997-2002)
During the Ninth Plan period, the growth rate was 5.35 per cent, a percentage point lower than the target GDP growth of 6.5 per cent.
Tenth plan (2002-2007)
The main objectives of the 10th Five-Year Plan were:
poverty ratioby 5 percentage points by 2007;
*Providing gainful and high-quality employment at least to the addition to the labour force;
* All children in india in school by 2003; all children to complete 5 years of schooling by 2007;
* Reduction in gender gaps in literacy and wage rates by at least 50% by 2007;
* Reduction in the decadal rate of population growth between 2001 and 2011 to 16.2%;
* Increase in Literacy Rates to 75 per cent within the Tenth Plan period (2002-3 to 2006-7);
* Reduction of Infant mortality rate (IMR) to 45 per 1000 live births by 2007 and to 28 by 2012;
* Reduction of Maternal Mortality Ratio (MMR) to 2 per 1000 live births by 2007 and to 1 by 2012;
* Increase in forest and tree cover to 25 per cent by 2007 and 33 per cent by 2012;
* All villages to have sustained access to potable drinking water within the Plan period;
* Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012;
* Economic Growth further accelerated during this period and crosses over 8% by 2006.
Eleventh plan (2007-2012)
The eleventh plan has the following objectives:
#Income & Poverty
GDPgrowth from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016-17
#*Increase agricultural GDP growth rate to 4% per year to ensure a broader spread of benefits
#*Create 70 million new work opportunities.
#*Reduce educated unemployment to below 5%.
#*Raise real wage rate of unskilled workers by 20 percent.
#*Reduce the headcount ratio of consumption poverty by 10 percentage points.
#*Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12
#*Develop minimum standards of educational attainment in elementary school, and by regular testing monitor effectiveness of education to ensure quality
literacy ratefor persons of age 7 years or more to 85%
#*Lower gender gap in literacy to 10 percentage points
#*Increase the percentage of each cohort going to higher education from the present 10% to 15% by the end of the plan
infant mortality rateto 28 and maternal mortality ratioto 1 per 1000 live births
Total Fertility Rateto 2.1
#*Provide clean drinking water for all by 2009 and ensure that there are no slip-backs
malnutritionamong children of age group 0-3 to half its present level
anaemiaamong women and girls by 50% by the end of the plan
#Women and Children
#*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 that all children enjoy a safe childhood, without any compulsion to work
#*Ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power.
#*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
#*Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by 2016-17
#*Increase forest and tree cover by 5 percentage points.
WHOstandards 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.
* [http://planningcommission.nic.in Official website of the Planning Commission of India]
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