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03/19/10 Economic Planning of India

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Economic planning of India
Why are the five year plans
made?
• Increase in National Income

03/19/10 Economic Planning of India



• Full Employment

• Reduction in Inequalities of Income and Wealth

• Social Justice

• Other Objectives
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03/19/10 Economic Planning of India
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Five Year's Plan in a
nutshell
1st five year plan (1951-56)
 It was presented by Jawaharlal Nehru in 1951, at the end of partition of the
country.

03/19/10 Economic Planning of India


 It gave importance to agriculture, irrigation.

 Resolve the food crisis and ease the raw material problem especially in jute and
cotton.

 Rehabilitation of refugees, rapid agricultural growth and control of inflation.


 Maximum output from agriculture= more industrial growth


 Agriculture production increased .


 National income went up by 18%, per capita income by 11% and per capita
consumption by 9%. 4

2nd five year plan (1956-61)
 Started in prosperity.

03/19/10 Economic Planning of India


 Programs for agriculture and covering food
needs were formulated.

 Target 25% increase in national income.

 Rapid industrialization with emphasis on the
development of basic and heavy industries.

 Target could not be achieved due to shortage
of foreign exchange and rising prices.
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3rd five year plan (1961-66)
 Realizing that the agriculture was a destabilizing
factor in the economy so agriculture was given

03/19/10 Economic Planning of India


due importance.

 The plan aimed to increase national income by


30% and agriculture production by 30%.

 Establishment of a self reliant and self generating


economy both in agriculture and industry.

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4th five year plan(1969-74)
 GDP growth and capital accumulation alone didn’t
helped.

03/19/10 Economic Planning of India



 Importance was given to provide employment and
education.

 Resources to agriculture were increased to 23.3% and
family planning was given due weightage

 Achievements were below targets.

 Agriculture growth was just at 2.8% and Industry too
grew at 3.9%.

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 First 2 years were a success, but failed the rest due to
monsoon failure, power shortage, and inflation.
5th five year plan(1974-79)

03/19/10 Economic Planning of India


 Removal of poverty, checking inflation due to
inflationary pressure during the fourth plan.

 Nutritional requirement, health, and family


planning were made important.

 Target was to achieve 5.5%increase in


national income.

 The fifth plan was discontinued by the new


Janata government in the fourth year itself.
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6th five year plan(1980-85)

03/19/10 Economic Planning of India


 Aim to provide employment opportunities to
the marginalized section of the society

 Achieve more production targets and


increased employment.

 Focus on agriculture and infrastructure.


 The plan achieved a growth of 6% p.a.

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7th five year plan(1985-89)
 Starting three years saw severe drought conditions,
despite which the food grain production rose by

03/19/10 Economic Planning of India


3.2%


 Special programs like Jawahar Rozgar Yojana were
introduced.


 Sectors like welfare, education, health, family
planning, employment etc got more emphasis.


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 More focus on increasing production by increasing
employment.
8th five year plan(1992-97)
 It faced the devaluation of rupees.

03/19/10 Economic Planning of India


 Target was to increase growth rate to 5.6% in GDP.

 More emphasis on infrastructure.


 Employment, health, drinking water were allotted


more resources.

 Decrease in the poverty level was another area of


focus.

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9th five year plan(1997-2002)

03/19/10 Economic Planning of India


 Gains didn’t percolated to the weaker sections
of the society.

 Plans were made to increase rural incomes.


 Improve the living standards of labors and


farmers.

 Aimed at quality of life, generation of


productive employment, and self reliance.
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10 th five year plan (2002-2007)
 Moved from Rs. 4.67 cr. to Rs.6413 cr.

 Planning commission financed Rs.2430 cr. Against a

03/19/10 Economic Planning of India


request of Rs.4545 cr.

 Target was a growth rate of 8%, and implementing all the
policies formulated in the past.

 The Tenth Five Year Plan proposes schooling to be
compulsory for children, by the year 2003.

 All main rivers should be cleaned up between 2007 and
2012

 Reducing the poverty ratio by at least five percentage
points, by 2007
 13
 Making provision for useful and lucrative employments to
the population, which are of the best qualities
Contd.
 By 2007, there should be a decrease in gender
discriminations in the spheres of wage rate and
literacy, by a minimum of 50%

03/19/10 Economic Planning of India


 Taking up of extensive afforestation measures, by


planting more trees and enhance the forest and
tree areas to 25% by 2007 and 33% by 2012

 Ensuring persistent availability of pure drinking water


in the rural areas of India, even in the remote parts

 According to the Plan, it is mandatory that all infants


complete at least five years in schools by 2007.
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• CONTD…

The rate of literacy must be

03/19/10 Economic Planning of India



increased by at least 75%.

 The alarming rate at which
the Indian population is
growing must be checked
and fixed to 16.2%,
between a time frame of
2001 and 2011


 Renovating the nation, so
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that India moves at pace
with other fast growing
economies.
Achievements during Tenth Five-Year Plan
 Fiscal Management-
 The average growth rate in own tax revenue is likely to be more
than 14%.

03/19/10 Economic Planning of India


 Average increase in salary expenditure has been less than 7%,
whereas during Ninth plan period it was around 13%

 The average increase in interest payment is around 6% whereas
during Ninth Plan period it was 18%.

 Agriculture-
 "Krishi Yojna - Aapke Dwar" launched in all Panchayat Samities in
2005-06 for a transparent delivery of extension services.

 For efficient use of water "Amulya Neer Yojna" launched to
popularize water saving devices.

 Industry-
 (SEZs) are being developed with a view to provide infrastructure
and hassle free environment.
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 Rural Development and Self-Employment Training Institute
(RUDSETI) are being established at 5 places in the state.

Contd..
 Roads-
 Ruralconnectivity rose from 45% in 2002 to 65% in
2006.

03/19/10 Economic Planning of India


 Mukhya Mantri Sarak Yojana launched on 7th
October, 2005 for improvement and up gradation
of State Highway.

 Education-
 Access of one primary school within the radius of
one km and upper primary school within 3 km.
 Free text books to all girls and boys of class 1 to 12
studying in Government and aided schools except
boys of general category whose parents are
income tax payers.
 Hot cooked mid day meals for all children in primary 17
schools.
 Free bus passes to girls, studying in rural areas.
11th five year plan (2007-2012)
 Vision for the Eleventh Plan-
 To maximize the use of vast untapped potential and

03/19/10 Economic Planning of India


natural endowments of the State, thereby ensuring
food and nutritional security and better farm incomes,
through environmentally sustainable agronomic
practices.

 Public investments to be made for industrial growth.


 Increase crop productivity.


 Maintain soil health.


 laboratories would have to be refurbished 18


Six Plan schemes during the XI Plan
•i. National Laboratories
i.

03/19/10 Economic Planning of India


•ii. National S&T Human Resource Development

•iii. Intellectual Property & Technology Management,


•iv. R&D Management Support


•v. New Millennium Indian Technology Leadership


Initiative and

•vi. Setting up of a Translational Research Institute


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The Eleventh Plan will focus on

 Improving animal feed

03/19/10 Economic Planning of India



 Promoting clean milk
production

 Expanding the cooperatives
network to cover more
farmers

 Conducting milk production
and demand surveys

 Creating adequate plant
capacity

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 A Plan outlay of Rs. 17580
Crore has been envisaged for
the six plan schemes during
Objectives of the 11th plan
• Income & Poverty-
•(a)Accelerate GDP growth from 8% to 10% and then

maintain at 10% in the 12th Plan.

03/19/10 Economic Planning of India


•(b)Create 70 million new work opportunities.

•(c)Reduce educated unemployment to below 5%.

• Education –
•(a)Increase literacy rate for persons of age 7 years or

above to 85%
•(b)Lower gender gap in literacy to 10 percentage point

• Health –
•(a)Provide clean drinking water for all by 2009

•(b)Reduce anemia among women and girls by 50% by the

end of the plan 21


Women and Children –


(a)Ensure that at least 33 percent of the direct and indirect


beneficiaries of all government schemes are women and girl


children

03/19/10 Economic Planning of India


•(b)Ensure that all children enjoy a safe childhood, without any

compulsion to work

•Infrastructure-
•(a)Ensure electricity connection to all villages

•(b)Connect every village by telephone by November 2007 and

provide broadband connectivity to all villages by 2012


• Environment

(a)Attain WHO standards of air quality in all major cities by
2011-12.
•(b)Treat all urban waste water by 2011-12 to clean river
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waters.

distribution of allocations under
different schemes

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 Creation of 37 Supra Institutional Projects.

 143 Network Projects.

03/19/10 Economic Planning of India


 18 Inter Agency Projects and


 28 Facilities.

 An estimated outlay of Rs. 12810 crores would be


required under the National Laboratory Scheme
which includes the ongoing component of Rs.600
crore, creating, nurturing and sustaining the core
knowledge frontier of Rs. 1000 crores
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Achievements & Initiatives during Tenth Five-Year Plan
 Industry-
•(a)Raising the rate of growth of the manufacturing sector to 12% p.a.

•(b)Special emphasis for preservation and sustenance of traditional art

forms and the artisans.

03/19/10 Economic Planning of India


•(b)Create investor friendly climate and conducive environment by reducing

the cost of doing business.


 Roads-
•(a)The National Highway and State Highway together account for only

14.5% of network but carry 85% of traffic. 92% of the roads are single
lane, 3% intermediate lane and 5% double lane.
•(b)There are 39753 inhabited villages in the State (2001 census). Out of

these, 24010 villages were connected by roads at the end of March,


2006.

 Education-
•(a)Education is the most critical element in empowering people with skills

and knowledge and giving them access to productive employment in25


future and hence needs special attention.
• 
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