INDIAS FIVE YEAR PLANS

Introduction Why it was needed ?

When India gained independence, its

economy was groveling in dust.

The British had left the Indian economy

crippled and the fathers of development
formulated 5years plan to develop the Indian
economy

Who Monitors It ?

The five years plan in India is framed, executed and

monitored by the Planning Commission of India.

The Planning Commission was set up in March, 1950.

The draft of the first five-year plan was published in

July 1951 and it was approved in December 1951.

With the Prime Minister as the ex officio Chairman.

The commission has a nominated Deputy Chairman,
who has rank of a Cabinet minister.

First Five Year Plan (1951-1956)

The first Prime Minister, Jawaharlal Nehru presented

the first plan to the Parliament of India on December
8, 1951.
Objectives
The primary aim was to improve living standards of
the people of India.
This was done by making use of India's natural
resources.
The total outlay was worth Rs.2,069 crore.
The target set for the growth in the GDP was
2.1percent every year.

What Was Achieved ?

In reality, GDP of 3.6 percent per annum was achieved .

The following Irrigation projects were started during that

period:
Mettur Dam ,Hirakud Dam and Bhakra Dam.
Rehabilitation of landless workers, whose main occupation
was agriculture.
Soil conservation, was given importance.
Effort in improving posts and telegraphs, railway services,
road tracks, civil aviation were taken.
Sufficient fund were allocated for the industrial sector.
Measures were taken for the growth of the small scale
industries.

Second Five Year Plan(1956-1961)

The 2nd year plan, functioned on the basis of

Mahalanobis model it was propounded by the famous
statistician Prasanta Chandra Mahalanobis in the year
1953. His model addresses different issues pertaining
to economic development.
The plan attempted to determine the optimal
allocation of investment between productive sectors in
order to maximize long-run economic growth .
Assumptions made by the Mahalanobis model:
According to this model, it is assumed that the
economy is closed and has two segments.
1. Segment of consumption goods
2. Segment of capital goods.

Second Five Year Plan(1956-1961)

Objective
The second five-year plan focused on industry,
especially heavy industry.
The Indian government boosted manufacturing of
industrial goods in the country.
This was done primarily to develop the public
sector.

What Was Achieved ?

Five steel mills at Bhilai , Durgapur, Rourkela and

Jamshedpur were set up .

Hydroelectric power plants were formed .

Coal production was increased.

Railway lines were added in the north east.

The Atomic Energy Commission was formed in 1957

with Homi J. Bhabha as the first chairman.

Tata Institute of Fundamental Research was born.

Third Five Year plan(1961-1966)

Objective

The third plan stressed on agriculture and improving

production of rice, but the brief Sino-Indian War in
1962 exposed weaknesses in the economy and
shifted the focus towards defence.
The war led to inflation and the priority was shifted
to price stabilization.
Increasing the national income by 5 percent per
annum.
Minimizing rate of unemployment.
Ensuring that people enjoy equal rights in the
country.

What Was Achieved ?

The construction of dams continued.

Many cement and fertilizer plants were also built.
Punjab begun producing an abundance of wheat.
Many primary schools were started in rural areas.
Panchayat elections were started and the states
were given more development responsibilities.
State electricity boards and state secondary
education boards were formed.

Fourth Five Year plan(1969-1974)

Indira Gandhi was the Prime Minister.

Objective
India had to reform and restructure its expenditure
agenda, following the attack on India in the year
1962 and for the second time in the year 1965.
Due to recession, famine and drought, India did
not pay much heed to long term goals.
The need for foreign reserves was felt.

What Was Achieved ?

The Indira Gandhi government nationalized 14

major Indian banks .
Funds earmarked for the industrial development
had to be used for the war effort.
Green Revolution in India advanced agriculture.
Food grains production increased to bring about
self sufficiency in production.

Fifth Five Year plan(1974-1979)

Objective

The world economy was in a troublesome state

which had a negative impact on the Indian
economy.
Therefore, priority was given to the food and energy
sectors.
Improving the scope of self-employment through a
well integrated program.

Reduce poverty

Improving the agricultural condition by

implementing land reform measures.

What Was Achieved ?

Electricity Supply Act was enacted in 1975, which

enabled the Central Government to enter into
power generation and transmission.
Importance of a labor intensive production
technology in India.
Increase in the supply of food grains and the export
of minerals and oil reserve earned a good amount
of foreign exchange to the Indian Economy.
Enhancing the import substitution in the spheres
including chemicals, paper, mineral and equipment
industries.

Sixth Five Year plan (1980-1985)

Objective

6th Five Year Plan is also referred to as the Janata

Government Plan which marked a reversal of the
Nehruvian model.

Rajiv Gandhi was elected as the prime minister, He

aimed for rapid industrial development, especially
in the area of information technology.

Progress was slow, however, partly because of

caution on the part of labour and communist
leaders.

What Was Achieved ?

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.
Family Planning was implemented for the first time
in India .
Price controls were eliminated and ration shops
were closed. This led to an increase in food prices
and an increased cost of living.

Seventh Five Year plan(1985-1989)

The thrust areas of the 7th Five year plan have

been enlisted below:
Social Justice
Introduction and application of modern technology
Agricultural development
Anti-poverty programs
Assuring the essentials of food, shelter and clothing
to the people
Increasing productivity of small and large scale
farmers
Making India an Independent Economy

What Was Achieved ?

India strove to bring about a self-sustained

economy in the country with valuable contributions
from voluntary agencies and the general populace.
Care was taken to establish a harmony in all the
sectors that are contained in an economy.
Spread education among girls, enhance
telecommunication within the country.
The government of India also strove to maintain a
balance in the economy and by striking a balance
within export and import.

Period between 1989-91

In 1991, India faced a crisis in Foreign Exchange

(Forex) reserves.
P.V. Narasimha Rao was the twelfth Prime
Minister, and led the most important
administrations in India's modern history
overseeing a major economic transformation and
several incidents affecting national security.
Dr. Manmohan Singh launched India's free market
reforms that brought the nearly bankrupt nation
back from the edge.
It was the beginning of privatisation and
liberalisation in India.

Eight Five Year plan(1992-1997)

This plan can be termed as Rao and Manmohan model of

Economic development.

Objective

Modernization of industries was a major highlight of the

Eighth Plan

Containing population growth, poverty reduction.

Employment generation, strengthening the

infrastructure, Institutional building.

Human Resource development

What Was Achieved ?

Production of food increased to 176.22 million from

51 million which was a huge in comparison to the
previous years.

Energy was given priority with 26.6% of the outlay.

India became a member of the World Trade

Organization on 1 January 1995

An average annual growth rate of 6.7% against the

target 5.6% was achieved.

Ninth Five Year Plan (1997 - 2002)

Objective
To prioritize agricultural sector and on the rural
development
To generate employment opportunities and promote
poverty reduction
To stabilize the prices in order to accelerate the growth
rate of the economy
To ensure food and nutritional security
To provide for the basic facilities like education for all, safe
drinking water, primary health care, transport, energy
To check the growing population
To encourage social issues like women empowerment,
conservation of certain benefits for the Special Groups of
the society
To create a liberal market for increase in private
investments

What Was Achieved ?

It was tool for solving the economic and social

problems existing in the country.

The growth rate was 5.35 per cent, A percentage

point lower than the target GDP growth of 6.5 per
cent

Tenth Five Year Plan(2002-2007)

Objective

Reduction in

Poverty ratio by 5 % points by 2007;

Gender gaps in literacy and wage rates by at least 50% by 2007;

Decadal rate of population growth between 2001 and 2011 to

16.2%;

Infant mortality rate (IMR) to 45 per 1000 live births by 2007

and to 28 by 2012;

Maternal Mortality Ratio (MMR) to 2 per 1000 live births by 2007

and to 1 by 2012;

Increase in

Literacy Rates to 75 per cent

Forest and tree cover to 25% by 2007 and 33% by 2012;

Tenth Five Year Plan(2002-2007)

All villages to have sustained access to potable

drinking water
Cleaning of all major polluted rivers by 2007
Economic Growth further accelerated during this
period and crosses over 8% by 2006
Providing gainful and high-quality employment at
least to the addition to the labour force;
All children in India in school by 2003; and to
complete 5 years of schooling by 2007;

Eleventh Five Year Plan (2007-2012)

Objective

Objective to increase GDP growth to 10%.

Increase agricultural GDP growth to 4% per year to
ensure a wider spread of benefits.
Create 70 million new work opportunities.
Augment minimum standards of education in primary
school.
Reduce infant mortality rate to 28 and malnutrition
among children of age group 0-3 to half of its present
level.
Ensure electricity connection to all villages and increase
forest and tree cover by five percentage points.

INDIAS GROWTH PERFORMANCE DURING THE PLANS

Trends in Per capita NNP at factor cost

Average (1951 to 2000) :- 2.2

Conclusions

Lack of consistency.

Monsoon-a dominant factor.

Modest growth rate.

Foreign capital.

Less impressive.

Objectives remain unfulfilled.

THANK YOU