INDIAN ECONOMY

ASSIGNMENT - 1

The following is the compiled assignment including facts, figures and all the data
acquired from the Internet.

This assignment has been compiled on the following topic:

OBJECTIVES OF FIVE YEAR PLAN

Compiled By:

Mohit Sharma
BBA(G) , SECTION B
ENROLLMENT NO. 05214901716
Class Coordinator : Jasbir Singh
Objectives of Indias Five Year Plan (1951-2017)

1. High Rate of Growth

2. Raising Investment Income Ratio

3. Social Justice

4. Removal of Poverty

5. Full Employment

6. Self-Reliance

7. Modernization

8. Human Development

9. Economic Growth

10. Economic Equity

11. Economic Self-Reliance

12. Self-sufficiency
Achivements of Indias Five Year Plans(1951-2017)

1. Increase in National Income

2. Increase in Per Capita Income

3. Development in Agriculture

4. Development of Industry

5. Development of Transport and Communication

6. Self Reliance

7. Employment

8. Development of Science and Technology

9. Capital Formation

10. Social Services

11.Power

12.Price Stability

13. Social Justice

Failures of Indias Five Year Plans(1951-2017)

1. Stagnant Economy

2. Poverty

3. Unequal Distribution of Income and Assets

4. Increasing Unemployment

5. Abnormal Growth of Population

6. Inflationary Pressure

7. Adverse Balance of Payment

8. Unproductive Expenditure

9. Huge Amount of Deficit Financing

10. Biased Growth Profile

11. Vicious Circle of Poverty

12. Inadequate Social Development

13. Defective Process of Planning

14. Slow Economic Growth

Brief Indias Five Year Plans(1951-2017)

First Five Year Plan:

Prior to first five year plan, Indian economy was backward. Population was increasing more as
compared to economic growth.

The situation of trade and industries was far from satisfaction. The rate of capital formation was
at low level. The per capita income in the country was also very low.

Objectives:
The main objectives of the First Five Year Plan are explained as under:

1. To reform the countrys economy.

2. To solve the food problem.

3. To raise the standard of living.

4. To provide social and economic justice.

Achievements:
Increase in National Income: The First Five Year sustained the hope of the planners by making
headway in achieving its targets and ambitious objectives to a larger extent. The national
income rose from Rs. 9110 crores to Rs. 10800 crores from 1950- 51 to 1956-57 at the price
level of 1953-54.

Agricultural Development: In the field of agriculture, total food-grains was 69.3 million tones
against the target of 62.6 million tones. The index number of agricultural production for all
crops increased from 26 to 117 during the period of 1950-51 to 1955-56 (1949-50 = 100).
During this period, the import of foodstuffs led to a drastic reduction.

Industrial Production: Industrial production has recorded the increase to the extent of 38 per
cent. Total gross investment in fixed capital in the private sector was about Rs. 340 crore.

The progress of production and expansion of capacity was satisfactory in the case of Sindri
Fertilizer Factory, Chittaranjan Locomotive Factory, Indian Telephone Industries, Integral Coach
Factory, Cable Factory and Pencillin Factory. A new plant of iron and steel was set with a
capacity of 35000 tones of pig iron.

II. Second Five Year Plan:

The second period of second five year plan was April 1, 1956 to May 31, 1961. The main
purpose of the plan was to establish socialistic pattern of society.

Objectives:

The main objectives of the Second Five Year Plan are as under:

(i) Sizeable increase in the national income to raise the level of living.
(ii) Rapid industrialisation with special emphasis on the development of basic and heavy
industries;

(iii) Large expansion of employment opportunities;

(iv) Reduction of inequalities in income and wealth and a more even distribution of economic
power.

Achievements:

Foreign Exchange: The plan witnessed a severe drain on the foreign exchange resources of the
country. The reserves were drawn by about Rs. 540 crore during the period of 1955-56 to 1959-
60 which was due to the large trade deficits. In 1959-60, Indias external payment position
continued to reflect this very trend with the foreign exchange reserves declining by Rs. 16 crore.

Agricultural Development: In the case of agriculture, the index number rose to 135 in 1960-61
from 116.8 in 195-56. The production was recorded 76 million tones in 1960-61 against 658
million tones in 1955-56. The overall increase was 16 per cent. The production of cotton,
sugarcane and oilseeds was 5.1 million bales, 8 million tones and 7.1 million tonnes ending
1960-61 while it was registered 4.0 million bales, 5.1 million tones and 5.6 million tones
respectively in 1955-56.

The total area under food grain crops was 113.4 million acres in 1960- 61 while it was 105.3
million acres during 1955-56. The rate of growth in agriculture sector was 44.6 per cent in 1956-
57 and 6.5 per cent in 1960-61.

Power Programmes: The power programmes suffered a setback because of foreign exchange
hardships. Even then, total number of villages/towns electrified in the country was 21396
ending March 1960. About 16000 kilometres of transmission lines with operating voltage about
33 KV were erected during the plan period.
III. Third Five Year Plan:

The Third Five Year Plan was a continuation of the previous plan designed to provide India a self
generating and self-reliance economy by 1975-76.

Objectives
(a) To secure an increase in national income of over 5 per cent per annum, the pattern of
investment being designed so as to sustain this rate of growth during the subsequent plans;

(b) To achieve self sufficiency in food-grains and increase agricultural production to meet the
requirement of industry and exports;

(c) To expand the basic industries such as steel, chemical industries, power and also establish
machine building capacity so that the requirements of further industrialisation can be met
within a period of ten years or so mainly from the countrys own resources;

Achievements:

National Income: The rate of growth of national income was less than half of the rate 5 per cent
per annum. In 1964-65, it was registered to the tune of 2.5, 1.7 and 4.9 per cent respectively. In
1965-66, it declined to 4.2 per cent.

Agricultural and Power Development: In agriculture sector, there was stagnation during the first
three years while in 1964- 65, there was bumper record and again in the year of 1965-66 its
production declined to unprecedented floods and droughts. As a whole, agricultural production
went down by 7.4 per cent.
Industrial Development: The increase in industrial output considering 1960 as base year stood
at 8.2 per cent in 1961-62, 9.6 per cent in 1962-63, 9.2 per cent in 1963-64 and 8.3 per cent in
1964.65. Thereafter, there was sharp deterioration in the rate of growth of output. It fell to 4.3
per cent in 1965-66.

IV. Fourth Five Year Plan:

The Fourth Five Year Plan should ordinarily have commenced in 1966 on the expiry of the Third
Five Year Plan. The necessary preparatory work had already been undertaken but its finalisation
was delayed due to severe threats like hostilities of 1962 and 1965 and the steep fall in
agricultural production over two successive years 1965-66 and 1966-67, and devaluation of
Indian Rupee in June 1966.

The Planning Commission which was reconstituted in September 1967, felt that the five year
period of the Fourth Plan should commence from 1969 and the year of 1968-69 should have an
annual plan as of 1966-67 and 1967- 68. Therefore, the document of the Fourth Plan for 1969-
74, reaffirmed the objective enunciated in the previous plans and included the policies and
programmes which would promote the attainment of self reliance with adequate growth rate
and accelerate the progress towards a socialist society.

Objectives:

Fourth Five Year Plan have following objectives:

(a) Feasible rates of growth as indicated in the direction of becoming free from dependence on
foreign aid by providing priority to increase agricultural and industrial sector;
(b) Measures to maintain stability in the prices and to set up consistent economic policies which
would lead towards the goal of mixed economy;

(c) Priority would be given to enlarge the income of the rural population and augment the
supply of food. Efforts would be made to maximise the production.

Achievements:

National Income and Balance of Payment: The plan envisaged an average annual compound
growth rate of 5.7 per cent. Against this projected growth, the economy experienced a rate of
growth of 5.2 per cent in 1969-70, 4.2 per cent in 1970-71, 1.7 per cent in 1971-72, and 0.6 per
cent in 1972-73. The rate of domestic saving rose from 8.4 per cent to 13.6 per cent during the
plan period and the rate of investment from 9.5 per cent to 14.4 per cent over the same period.

Agriculture Production:

The production of food-grains was estimated to rise from 98 million tones to 129 million tones
but it was registered only 104.7 million tones in 1973-74 ; thereby the increase was of 7.2 per
cent against its targeted increase of 31.6 per cent. The highest level of production was 108
million tones in 1970-71. The output of pulses had deteriorated in spite of favourable price
trend.

Industrial Development:

The rate of growth in the industrial sector was only 3.9 per cent annual. The industrial
production growth rate declined from 6.8 per cent in 1969-70 to 3.7 per cent in 1970-71 but it
increased to 4.5 per cent in 1971-72 and at around 5 per cent during 1972-73-74. The
production of steel ingot was 7.4 million tones against 10.8 million tones ; finished steel was of
5.4 million tones against 8.1 million tones ; cotton textile machinery of Rs. 300 million against
Rs. 450 million ; petroleum of 7.7 million tones against 8.5 million tones.
V. Fifth Five Year Plan:

During the course of presentation of the draft the Fifth Five Year Plan, unfortunately coincided
with a major upheaval on the international economic scene which largely affected the
developed and developing countries. Political leaders and economists all over the world were
aware of this collapse.

The sharp increase in the prices of food, fertilizers and oil seriously upset the assumption on
which draft had been framed. Mrs. Indira Gandhi, while addressing the news conference
warned against the economic challenges and hoped that the people will face these problems
with unity and in a spirit of co-operation.

Objectives:

1. 5.5 per cent overall rate of growth of gross domestic product;

2. Expansion of productive employment;

3. A national programme for minimum needs;

4. Extended programme of social welfare;

Achievements:

National Income: Though the Fifth Five Year Plan was suspended one year earlier than its
tenure, even then, its progress could be considered fairly satisfactory and be compared with the
complete period of five years. The growth rate of national income ending fifth plan period was
5.4 per cent at the price index of 1970-71. The average growth rate of per capita income was
2.92 per cent due to high growth of population.

Agricultural and Social Sector: The agricultural production showed tremendous favorable
trends. The annual rate of growth of agricultural production grew at the rate of 4.58 per cent
against its target rate of 3.3 per cent. The total food-grains production was of the order of 125.6
million tonnes in 1978-79 while oilseed was registered of 8.9 million tones. The gross irrigated
area was recorded 48.41 million hectares during the same period.

Industrial Development: During the plan period of 1974-79, village and small industries
registered a growth rate of 6.8 per cent per annum. The gross value added at factor cost rose
from Rs. 2800 crore in 1973-74 to Rs. 4100 crore in 1979-80 (at price of 1970-71) registering a
growth rate of 6.6 per cent per annum. The employment has increased in Village and Khadi
industries from 8.84 lakh and 9.27 lakh in 1973.74 to 11.24 lakh in 1979-80.

General Development: The traffic by railway in terms of tone kilometres gone up from about
122.4 billion net tone kilometres in 1973-74 to 162.7 billion net tones kilometers in 1977- 78.
5549 kms. of new national highways were added during the plan period and total surfaced road
length was 623402 kms ending March 1979.

VI. Sixth Five Year Plan:

In the Sixth Five Year Plan (1978-83) (envisaged during the Janta Government at Centre); the
National Development council discussed the document Draft Plan 1978-83 under the
chairmanship of the Prime Minister of March 18/19, 1978 and approved the programme such as
removal of unemployment, reduction in poverty and inequalities and the continues progress
towards self- reliance.

This clearly showed a clear cut shift in the strategy of planning. For the first time, Planning
Commission acknowledged the denial of Social justice to the poorest sections of population.
Draft Five Year Plan 1978-83 stated, what matters is not the precise rate of increase in the
national product that is achieved in five or ten years but whether we can ensure within
specified time frame a measurable increase in the welfare of the million of the poor.

Objectives:

The objectives of Sixth Five Year plan are as under:

() Promotion of efficiency in the use of resources and improved productively;

(b) Strengthening the impulses of modernisation for the achievement of economic and
technological self-reliance;

(c) A progressive reduction in the incidence of poverty and unemployment;

(d) A speedy development of indigenous sources of energies;

(e) Improving the quality of life of the people in general with special reference to the
economically and socially handicapped population;

Achievements:

Balance of Payment: The export and import ending 1984-85 was recorded to the order of Rs.
9962 crore and Rs. 15600 crore respectively. The trade balance was () 21.0 against its
projection of () 17.8. The disappointing performance of export was related to an unusual
combinations of adverse internal and external developments.
Horticultural and Plantation Crops: The production of vegetables and potatoes was recorded
during 1984-85 as 40.00 million tones and 16.00 million tones respectively. The production of
coconut was also satisfactory. Fruits also showed the production of 23.50 million tones in 1984-
85 against its target of 24.40 million tones.

Crop Production and Selected Inputs: In the sixth plan, it was proposed to have replacement
rate of 10 per cent for the pollinated crops like wheat and paddy, 100 per cent for hybrids and 5
per cent for pulses and oil seeds. In states like Madhya Pradesh, they are very much low, which
it attributed to countless reasons, as high sale prices of the seeds and lack of popularising
certified seeds.

On the other hand, higher replacement rate in some of the states like Assam, Manipur and
Tripura (vary from 30 to 60 per cent) are due to the fact that it is not possible for the cultivators
of these states to have their own seeds because of the agro-climatic conditions.

VII. Seventh Five Year Plan (1985-90):

The draft of Seventh Five Year Plan approved by National Development Council on Nov. 9, 1985.
It was noted that since independence the inception of planning, Indian economy has made
steady progress towards the basic objectives of building an independent, self-reliance economy.
The plan sough to emphasize polices, which would accelerate the growth in food-grain
production, increase in employment and raise productivity.

Objectives:

(i) Decentralisation of planning and full public participation in development

(ii) Removal of poverty and reduction in income disparities.

(iii) The maximum possible generation of productive employment.

(iv) Self-sufficiency in food at higher level of consumption.

(v) Higher level of social consumption, particularly in education and health and other basic
amenities.

Achievements:

Agriculture: The first three years were of the poor monsoon years. 150.4 million tones of food-
grains was recorded in 1985- 86 which was lower than the previous peak production of 152.4
million tones in 1983-84. The second year 1986-87 recorded decline to 143.4 million tones and
followed decline to 138.4 million tones in 1987-88.

Agricultural Inputs: During 1985-86 and 1986-87, total potential irrigation was achieved of 4.41
million hectare against its target of 4.65 million hectares. However, investment on minor
irrigation development was made of the order of Rs. 647 crore in 1985-86 and Rs. 730 crore in
1986-87.

Industrial Performance: The Seventh Plan has laid down considerable emphasis on accelerating
the pace of growth by liberalization of industrial licensing policy and other regulations, provision
of incentives for certain key areas like electronics etc. The pace of growth is almost maintained
in 1987-88 despite the drought conditions, resilience to supply shocks from agriculture and
thinning interdependence between agriculture and industry.

In 1987-88 industrial production had grown at 7.5 per cent while the manufacturing sector
recorded a growth of 8.2 per cent. However, the sectoral break up of index of industrial
production indicated growth rate of 3.6 per cent, 8.2 per cent and 7.7 per cent respectively for
mining, manufacturing and electricity in 1987-88. During April to December 1988,
manufacturing sector as a whole grew at 9.9 per cent.

Balance of Payment:The trade deficit, which averaged 3.4 per cent of GDP during sixth plan
period, increased to 3.7 per cent of GDP in 1985-86 but declined in 1986-87 to 3.2 per cent due
to both better export performance and acceleration in growth rates of imports.
Net earnings on invisible account fell down from an average of 2.1 per cent of GDP during sixth
plan to 1.4 per cent of GDP in 1985-86 and further to 1.2 per cent of GDP in 1986- 87. As a
result, current account deficit is estimated to have averaged over two per cent of GDP, as
against the targeted average of 1.6 per cent for the plan period

VIII. Eighth Five Year Plan (1992-97):

The eighth five year plan was for the period of April 1992 to March 1997.

Objectives:

(i) Generating adequate employment to achieve near full employment level by the turn of the
century.

(ii) Containing population growth through active peoples cooperation and an effective scheme
of incentives and disincentives.

(iii) Universalization of elementary education and complete eradication of illiteracy among the
people in the age group of 15 to 35 years.

(iv) Provision of sale drinking water and primary health facilities including immunisation for all
villages and entire population and complete elimination of scavenging.

(v) Growth and diversification of agriculture to achieve self- sufficient in food and generate
surpluses for exports.
Achievements

Growth Rate:The Eighth Plan had set a target of 5.6 per cent but it revealed from Economic
Survey of 1998-99 that the growth rate, which was only 0.5 per cent in 1991-92 gradually
increased to 5.2 per cent in 1992-93 and then increased to 6.2 per cent provisional in 1993-94.
In 1994-95, the CSO estimates show that the growth rate of GDP would be around 6.8 per cent.

Gross Domestic Savings and Investment: Gross domestic savings as per cent of GDP at current
prices, during the first four years of the Eighth Plan has increased from 22.1 per cent in 1992-93,
to 24.9 per cent in 1994-95 and then to new peak of 26.1 per cent in 1996-97.

The average gross domestic savings (GDS) as per cent of GDP during the Eighth Plan is estimated
at 24.3 per cent and these surpassed the target of 21.6 per cent. The rise in domestic savings in
1996-97 to a peak level of 26.1 per cent of GDP was primarily due to rise in private savings to
24.2 per cent of GDP.

Agriculture: In the agricultural sector, has achieved 6.1 per cent growth rate in 1992-93 and 94
per cent growth rate in 1996- 97. Total production of food-grains has increased to 179.5 million
tones in 1992-93 showing a growth rate of 6.6 per cent and then it increased to 199.4 million
tones in 1996-97 showing a growth rate of 10.5 per cent.

Industry: As against the targeted growth rate of 7.3 per cent in the manufacturing sector during
the Eighth Plan, this sector could attain only 4.2 per cent and 8.4 per cent growth rate in the
1992-93 and 1993-94 respectively.

Again the growth rate of manufacturing sector gradually increased to 10.6 per cent in 1994-95,
15.0 per cent in 1995-96 and then declined to 7.7 per cent (P) in 1996-97. The average growth
rate attained by the manufacturing sector during the Eighth Plan (1992-97) is estimated at 9.2
per cent.

During the Eighth Plan, the industrial sector of the country has responded well to the economic
reforms process. Accordingly, the growth rates of industrial sector which was only 4.2 per cent
in 1992-93 gradually rose to 6.6 per cent in 1993-94, 9.3 per cent in 1994-95, 12.2 per cent in
1995- 96 and 6.0 per cent in 1996-97.
The average growth rate attained by the industrial sector during the Eighth Plan (1992-97) was
estimated at 8.0 per cent.

IX. Ninth Five Year Plan (1997-2002):

The Ninth Plan has been launched in the 50th year of the independence of our country. This is
an opportune moment to take stock of the success of our planning process. According to the
Approach Paper, Ninth Plan will cover the period from 1st April 1997 to 31st March 2002.

The principle task of the Ninth Plan will be to usher in a new era of people-oriented planning, in
which not only the Governments at the Centre and the States, but the people at large,
particularly the poor, can fully participate.

A participatory planning process is an essential pre-condition for ensuring equity as well as

accelerating the rate of growth of the economy. Total investment is proposed to be Rs.
21,90,000 crore of it, public sector investment will be Rs. 8,75,000 crore and private sector
investment will be Rs. 13,15,000 crore. The objective of the plan is to achieve a growth rate of 7
percent per annum.

Objectives of Ninth Five Years Plan:

(i) Priority to agriculture and rural development with a view to generating adequate productivity
employment and eradication of poverty;

(ii) Accelerating the growth rate of the economy with stable prices;
(iii) Ensuring food and nutritional security for all, particularly the vulnerable sections of society;

(iv) Providing the basic minimum services of safe drinking water, primary health care facilities,
universal primary education, shelter, and connectivity to all in a time bound manner;

(v) Containing the growth rate of population;

(vi) Ensuring environmental sustainability of the development process through social

mobilisation and participation of people at all levels;

Achievements of the Ninth Plan:

The Ninth Plan has already completed its four year duration, thus it is quite necessary to review
the achievements of the plan. Let us now examine the achievements of the Ninth Plan.

(i) Growth Rate: Regarding annual growth rate of GDP, although the approach paper of the
Ninth Plan initially set the target of attaining 7.0 per cent annual growth rate of GDP but
considering the slowdown of the economy, the draft Ninth Plan has reduced the overall growth
targets in GDP from 7.0 per cent to 6.5 per cent.

But according to the Economic Survey 2001-2002, the growth rate of GDP which has only 4.8
per cent in 1997-98 gradually increased to 6.5 per cent in 1998-99 and then decelerated
marginally to 6.2 per cent in 1999-2000 and then to 4.0 per cent in 2000-01 and then to 5.4 per
cent in 2001-02.

(ii) Gross Domestic savings and Investment: The Ninth Plan draft had set the target of gross
domestic savings rate at 26.1 per cent of GDP but the same rate at current prices, during the
first three years of the Plan has reached the level of 23.1 per cent in 1997-98, 21.7 per cent in
1998-99 and 23.2 per cent in 1999-2000 and 23.4 per cent in 2000-01.
The gross domestic investment as per cent of GDP at current prices has reached the level of
25.0 per cent in 1997-98, 22.7 per cent in 1998- 99 and 24.3 per cent in 1999-2000 and 24.0 per
cent in 2000-01 as against the annual average target of 28.2 per cent.

(iii) Sectoral Growth: Although the draft Ninth Plan had set a target to attain annual average
growth rate of 3.9 per cent in Agriculture and allied sector but during the first three years of the
Ninth Plan it has attained 2.7 per cent growth rate. The same sector attained the growth rate of
() 2.7 per cent in 1997-98, 7.6 per cent in 1998-99, () 0.9 per cent in 1999-2000, () 6.6 per
cent in 2000-01 and finally 6.8 per cent in 2001-02.

The index of agricultural production (1981- 82 = 100) increased from 165.3 in 1997-98 to 177.9
in 1998-99, 176.2 in 1999- 2000, 164.6 in 2000-01 and finally to 175.9 in 2001-02.

X.Tenth Five-Year Plan (2002-07)

The National Development Council (NDC), headed by Prime Minister Atal Behari Vajpayee,
approved unanimously in December 2002 the Tenth Five-year Plan, envisaging an 8 percent
annual GDP growth.

Objective of the 10th Five Year Plan:

i. The Tenth Five Year Plan proposes schooling to be compulsory for children, by the year 2003.ii.
The mortality rate of children must be reduced to 45 per 1000 living births and 28 per 1000
living births by 2007 and 2012 respectively.

iii. All main rivers should be cleaned up between 2007 and 2012.

iv. Reducing the poverty ratio by at least five percentage points, by 2007.

v. Making provision for useful and lucrative employments to the population, which are of the
best qualities?

Achievements of the Tenth Plan:

i. Increasing the mobility of all the available financial resources of India, and optimizing them as
well.
ii. Setting up of a state-of-the-art infrastructure for all the existing industries in India.

iii. Encourage the initiative of capacity building within the Indian industrial sector.

iv. Creating a friendly, amiable and pleasant investment environment in India.

v. Encouraging sufficient transparency in the corporate sectors of India.

Indias Eleventh Five-Year Plan (2007-2012)

The National Development Council (NDC) has approved the Eleventh Plan on 19th December
2007 to raise the average economic growth rate to 9 percent from 7.6 percent recorded during
the Tenth Plan.The total outlay of the Eleventh Plan has been placed at Rs.3644718 crore which
is more than double of the total outlay of the previous Tenth Plan.

Objectives
Main Targets of the Eleventh Plan:

(a) Income and Poverty:i. Accelerate GDP growth from 8% to 10% and then maintain at 10% in
the 12th plan in order to double per capita income by 2016-17.

ii. Create 70 Million new work opportunities.

iii. Reduce educated unemployment to below 5%.

iv. Reduce poverty by 10 percentage points.

(b) Education:

i. Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by
2011-12.

ii. Increase literacy rate for persons of age 7 years or more to 85%.

iii. Lower gender gap in literacy to 10 percentage points.

(c) Health:

i. Reduce infant mortality rate to 28 and maternal mortality ratio to 1 percent 1000 live births.

ii. Reduce Total Fertility rate to 2.1.

iii. Reduce malnutrition among children of age group 0-3 to half its present level.

(d) Infrastructure:

i. Ensure electricity connection to all villages by 2009 and round-the-clock power.

ii. Increase forest and tree cover by 5 percent points.

iii. Attain World Health Organization standard of air quality in all major cities by 2011-12.

iv. A telephone in every village by November 2007.

v. Broadband connectivity to all villages by 2011-12.

Twelfth Five Year Plan (2012-17)

The Twelfth Plan commenced at a time when the global economy was going through a second
financial crisis, precipitated by the sovereign debt problems of the Eurozone which erupted in
the last year of the Eleventh Plan. The crisis affected all countries including India. Our growth
slowed down to 6.2 percent in 2011-12 and the deceleration continued into the first year of the
Twelfth Plan, when the economy is estimated to have grown by only 5 percent .

Objectives
Economic Growth

1. Real GDP Growth Rate of 8.0 per cent.

2. Agriculture Growth Rate of 4.0 per cent.

3. Manufacturing Growth Rate of 10.0 per cent.

Poverty and Employment

1.Head-count ratio of consumption poverty to be reduced by 10 percentage points over the

preceding estimates by the end of Twelfth FYP.

2. Generate 50 million new work opportunities in the non-farm sector and provide skill
certification to equivalent numbers during the Twelfth FYP.

Education
1. Mean Years of Schooling to increase to seven years by the end of Twelfth FYP.

2.. Enhance access to higher education by creating two million additional seats for each age
cohort aligned to the skill needs of the economy.

3. Eliminate gender and social gap in school enrolment (that is, between girls and boys)