Indian Economy : Five Year Plans and Their Objectives (Point to Point Information with Previous Year Question and Answer)

 

Five Year Plan

Five Year Plans and Their Objectives

Background:

·        After Independence, to improve our economy, we take a concept from USSR and i.e. The Five Year Plan.

·        In 1928 the 1^st Five Year Plan was introduced in USSR by Joseph Stalin.

·        In this Five year plan system a goal was set at the beginning of a year and by the end of the five year, the target was to achieve the goal through several schemes & Plans.

·        The Five Year Plan was introduced in India in 1951 & a body was formed to implement Five year Plan named Planning Commission. (**)

·        The Chairman of Planning Commission was the Prime Minister of India.

1^st Five Year Plan (1951-1956):

·        Main Goal: Agriculture.

·        Three Dams were set up : i) Bhakra Nagal Dam (Largest Dam of India, Sutlej River) ii) Hirakud Dam (Longest Dam of India, Mahanadi River) iii) Nagarjuma Sagar Dam (Krishna RIver)

·        Based on Harrod Domer Model & PM was Jawaharlal Nehru.

·        5 IITs were set up during this time, (1^st IIT: IIT Kharagpur) & UGC was established.

·        Target Growth Rate : 2.1 %

·        Growth Rate Achieved : 3.6%

·        Status : Successful

2^ND Five Year Plan (1956-1961):

·        Based on P. C. Mahalnobis Model who was a great Statistician. His birthday is celebrated as Indian Statistics Day

·        Main Goal: Rapid Industrialization.

·        Three Steel Plant was set up to achieve the goal and those three were set up at Bhilai (Chhattisgarh), Rourkela(Odisha) and Durgapur (WB)

·        Target Growth Rate : 4.5 %

·        Growth Rate achieved : 4.27%

·        Status: Moderately Successful.

·        Foreign Exchange is related to this Five Year Plan.

·        Industrial Policy Resolution (IPR) : 1956

3^rd Five Year Plan (1961-1966):

·        Main Goal: Self Reliant, Self Genratic Country.

·        Based on : Chakraborty Model

·        Target: 5.6% as because previous two plans was successful.

·        Achieved : 2.4%

·        Draught, Famine.

·        Two Wars: 1962- Sino-Indian War, 1965- Indo-Pak War

·        Death of two PM : Pandit Jawaharlal Nehru & Lal Bahadur Shastri (Jai Jawan, Jai Kishan)

·        CACP : Commission 1965 (It decides MSP)

·        IDBI : 1964

·        UTI :

·        FCI : 1965

Plan Holiday (1966-1696):

4^th Five Year Plan (1969-1974):

·        Goal : Growth with Stability

·        Target : 5.6 %-

·        Achieved: 3.3%

·        Gadgil Formula

·        Draught prone area program

·        1^st underground Nuclear Program : Laughing Buddha

·        14 Banks were nationalized.

·        1971 : Indo- Pak War

5^th Five Year Plan (1974-1978):

·        DP Dhar Model or Rudra ALLEN Model

·        Goal : Poverty Alliviation

·        Garibi Hatao

·        20 Points Program

·        Min Needs program 1974

·        1975 : RRB (regional Rural Bank)

·        In 1975 Indira Gandhi declared National Emergency. That’s why in 1978 Government changed and BJP came in power. PM : Morarji Deshai

·        Then in 1978 PM Morarji Deshai introduced Rolling Plan in the place of Five Year Plan.

·        In Rolling Plan, at beginning of a year a goal was set up and at the end of that year

·        Target : 4.4%

·        Achieved : 4.8%

6^th Five Year Plan (1980-1985):

·        Main Goal: Reduce Poverty & Increase National Income.

·        On the recommendation of Shivaraman Committee, NABARD was established. RRBs were supervised by NABARD & regulated by RBI.

·        To prevent overpopulation, Family Planning was introduced.

·        Landless Labor Employment Guarantee Program was launched.

·        Target: 5.2 %

·        Achieved: 5.7%

7^th Five Year Plan (1985-1990):

·        This plan was led by the PM Rajiv Gandhi.

·        Objectives:

o   Improvement of Industrial Productivity level through the use of Technology.

o   Economic Productivity

o   Increase the production of food grains

o   Generating Employment by providing Social Justice.

·        Target: 5%

·        Achieved: 6.01%

8^th Five Year Plan (1992-1997):

·        Objective: Modernization of Industries.

·        India became a member of World Trade Organisation on 1^st Jan, 1995.

·        Goals: Population Control, reduce poverty, generate employment, development of Infrastructure, Development of Tourism, Focus of Human Resource Development.

·        Target: 5.6%

·        Achieved: 6.8 %

9^th Five Year Plan (1997-2002):

·        Main Goal: Social Justice & Equality

·        Atal Bihari Vajpayee.

·        The focus was to balance the relationship between the rapid growth and the quality of life. Also empowering socially disadvantaged classes, Developing self-reliance & Primary education for all children in the country also are the objectives of this five year plan.

·        Strategies were taken to enhance the rate of export to gain self-reliance.

·        Target: 7.1%

·        Achieved: 6.8%

10^th Five Year Plan (2002-2007):

·        Main Goal: Per-capita Income

·        PM: Atal Bihari Vajpayee(2004) & Manmohan Singh

·        National Horticulture Mission was launched.

·        One of the main objectives was to reduce the Gender gap in the field of Education & Wage Rates by 2007

·        Target : 8%

·        Achieve : 7.6%

11^th Five Year Plan (2007-2012):

·        Main Goal: Rapid and more Inclusive Growth.

·        C. Ranganajan prepared the 11^th Five Year Plan.

·        This five year plan aimed to increase the enrolment in Higher Education. And to ensure this in 2009 The Right to Education Act was introduced. This Act came into effect in 2010 by which Government provide free and compulsory education for children aged between 6-14 years.

·        Target: 9%

·        Achieve: 8%

12^th Five Year Plan (2012-2017):

·        Main Goal: Faster, More Inclusive and Sustainable Growth.

·        Also aimed for providing electricity supply in all villages.

·        PM : Manmohan Singh

·        Target : 8%

·        This was the Last Five year plan and after 2017 NITY Aayog replaced it.