PLANNING IN INDIA BY:

Asif HAsan
 Planning Process in India:
• The planning process in India has both a
hierarchic and interactive character since we
operate within the framework of a federal
democratic political structure. The plan, as it is
formulated, has three distinctive components: A
long term perspective plan A Perspective Plan:
The main purpose is to indicate five year plan
Annual plan the desired directions of economic
activities to serve as pointers in formulating the
operational targets that go into five year plans.
The perspective plan formulated along
two principal lines:
• (a) the part that deals with the overall strategy; also
indicates the magnitude and type of resource
mobilization that will be called for as well as with the
question of external financing that may be necessary.
• (b) The other and more detailed part dealing with
projected developments in a number of key sectors of
the economy which have significant backward and
forward linkages. Once, key sectors are laid, the
perspective plan also tries to indicate a certain time
phasing of activities that will be called for if these
objectives are to be realized.
Economic Planning
Economic Planning is to make decision with respect to the
use of resources.
 In communist countries the government makes both micro-
and macroeconomic decisions.
Microeconomic decisions include what goods and services
to produce, the quantities to produce, the prices to charge,
and the wages to pay.
Macroeconomic decisions include the rate of investment
and the extent of foreign trade.
Economic planning in India was stared in 1950 is necessary
for economic development and economic growth.
Need For Economic Planning
Mess Poverty And Low Per Capita Income
High Rate of Growth of Population.
Industrial Growth Was Negligible.
Low Level of Literacy.
Backward Technology.
Traditional Attitude.
Social And Economic Problem Created By
Partition Of Country.
 Objective of Economic Planning
Economic Growth.
Reduction Of Economic In
Equalities.
Balanced Regional Development.
Modernization.
Reduction Of Unemployment.
 Planning commission of India
Planning commission of India was setup in March
1950 by government of India. The task before
planning commission of India are:-
Effective Utilization of Resources.
Prepare Five Year Plan Along With its Objective.
Co-ordination with State Government of India For
Execution of Plan.
Determination Of Priorities, Stages Of Plan and
Propose of Allocation Of Resources For Due
Completion Of Stages.
 Planning commission of in India
members are
Chairman- Dr. Manmohan Singh
Prime Minister

Deputy Chairman- Shri Montek singh

Ahluwalia

Member Secretary- Shri Rajeev Ratna

Shah
 11 Five Year Plan Target
th

Income & Poverty

 Accelerate growth rate of GDP 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.
 Reduce educated unemployment to below 5%.
 Raise real wage rate of unskilled workers by 20 percent.
 Education
 Reduce dropout rates of children from elementary
school from 52.2% in 2003-04 to 20% by 2011-12.
 Increase literacy rate for 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 11th Plan.
 Health
Provide clean drinking water for all by 2009
and ensure that there are no slip-backs by the
end of the 11th Plan.
 Reduce malnutrition among children of age
group 0-3 to half its present level.
 Reduce anemia among women and girls by
50% by the end of the 11th Plan.
 Women and Children
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
 Infrastructure
 Ensure electricity connection to all villages and BPL
households by 2009 and round-the-clock power by the end
of the Plan.
 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.
 Environment
Increase forest and tree cover by 5 percentage
points.
 Attain WHO standards 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
 Conclusion
Economic Planning help in mobilizing and
allocating the resources in desired manner.
 Objective of economic planning is to reduce
inequality, economic growth, balanced regional
growth, modernization.
Each five year plan aims at achieving certain
target. Five year plan constitute the steps toward
the fulfillment of objectives of economic
planning.
 Five year plan:
• That is the plan document constructed on the basis of
recommendations made by a large number of working
groups which deal with the major sector of economic
activities. Lays down broad strategies, objectives,
growth rate, sectoral targets, etc. Because of our
federal nature, every five year plan has : A central
component A state component (social services,
agriculture, irrigation, infrastructural activities such as
Annual Plan: That ispower, roads etc. figure
prominently in state component). the important
operational instrument of the five year plans. It
provides an occasion for stocktaking and assessing
progress of the plan from year to year.
• India’s leaders adopted the principles of formal
economic planning after independence as an
effective way to intervene in the economy to
foster growth and social justice. The planning
commission was established in 1950. Responsible
only to the Prime minister, the commission is
independent of the cabinet. A staff drafts
national plans under the guidance of the
commission; draft plans are presented for
approval to the National Development Council,
which consist of the planning commission and
the chief ministers of the states.
• The council can make changes to the draft
plan. After the council's approval, the draft is
presented to the cabinet and subsequently to
parliament, whose approval makes the plan
an operating document for central and state
government.
 ORGANIZATION OF THE PLANNING
COMMISSION
• The Prime Minister is the chairman of the
Planning Commission, which works under the
overall guidance of the NDC. The deputy
chairman and the full time members of the
commission, as a composite body, provide
advice and guidance to the subject divisions
for the formulation of five year plans, annual
plans, state plans, monitoring plan progress.
 ORGANIZATION OF THE PLANNING
COMMISSION
•  The planning commission functions through
several divisions, each headed by a senior
officer (as): Chairman Dy. Chairman Minister
of state Members Member secretary Senior
officials Grievance officers
 FUNCTIONS OF PLANNING
COMMISSION :
• THE 1950 RESOLUTION SETTING UP THE Planning
Commission outlined its functions as under: Make an
assessment of the material, capital and human
resources of the country, including technical
personnel. Formulate a plan for the most effective and
balanced utilisation of the country’s resources. On a
determination of priorities, define the stages in which
the plan should be carried out and propose the
allocation of resources for the due completion of each
stage. Determine the nature of the machinery which
will be necessary for securing the successful
impementation of each stage of the plan.
 A Review of Indian Plans :

• First Five Year Plan (1951-55): India’s first five

year plan was a moderate document → It said
that detailed planning to be attempted only
for a few selected industries which India
lacked. A Review of Indian Plans
 Objectives

• To correct the disequilibrium in the Indian

economy caused by the second world war and
the partition of the country. To achieve self
sufficiency in foodgrains production and to
improve availability of To attempt to provide
for To control inflationary tendencies raw
materials an all round balanced development
which would ensure a rising, national income and
a steady improvement in living standards over a
period of five years. Objectives:
• Second Plan: (1956-60) Objectives: To secure an
increase in national income by about 25 percent
over five years. To initiate rapid industrialization
with special emphasis on basic and heavy
industries. To generate more employment
opportunities To reduce the growing inequalities
in the distribution of income and wealth. To
increase the rate of investment from 7 percent of
National income to 11 percent of National
income by 1960-61.
• to secure aThird Plan (1961-65) Objectives: to
achieve selfgrowth in National Income of over 5
percent per annum sufficiency in foodgrains and
to increase agricultural production to meet the
to expand basicrequirements for industrial
development and export promotion industries
like steel, chemicals, fuel, and power and
machine building capacity toso that future
industrial requirements can be satisfied
domestically. utilize manpower efficiently by
generating more employment opportunities.
 Plan Holiday : 1966-69 1966 and
1968 : Famine years :
• Economic difficulties disrupted the planning process in the mid
1960s. In the 1960s, India faced two wars one with china in 1962
and then with pakistan in 1965. This come as a huge set back to the
economy as defence expenditure increased sharply and there was
negative impact on industrial and agriculture growth. Three annual
plans guided development between FY 1966 and FY 1968 while plan
policies and strategies were reevaluated. Plan Holiday : 1966-69
1966 and 1968 : Famine years
•   to attain aFourth Plan (1969-73) Objectives:  to bring about
economic5.5 percent growth in national income per annum  to
achieve social justice and equality  to achieve self reliance
stability toto utilize Panchayati Raj institutions in local and
regional planning. recognize the management of public
enterprises.
• to Fifth Five Year Plan (1974-78) Objectives:  to achieve
an adequate expansion ofremove poverty and achieve self
reliance to achieve developmentemployment
opportunities particularly in rural areas. without
stimulating further inflationary pressures by introducing
fiscal and monetary measures.
•  Sixth Plan (1980-84) Objectives to remove widespread
poverty particularly in rural areas to have an appreciable
step up in the rate of growth of the economy to strengthen
the impulses of modernization for economic and
technological self reliance to provide basic needs of the
people (drinking water, elementary education, health, etc.)
to reduce inequalities of income and wealth through
redistribution in favour of the poor
• to achieveSeventh Plan (1985-89) Objectives 
growth, equity, social justice, self reliance and
improved efficiency and to increase employment to
accelerate production of foodgrains productivity
toto lessen agricultural constraints on industrial
development opportunities initiate rapid expansion
of scientific and technological capabilities.
•   Eighth Plan (1992-96)The eighth plan is a plan for
managing the change, for managing the transition
from a centrally planned economy to a market led
economy, without fearing our socio-cultural fabric.
•  
• The Ninth Plan prepared under the United Front Government was
released in March 1998. The same was modified and approved by
the National Development Coun­cil in February 1999, nearly two
years after its implementa­tion from April 1, 1997. 1. OBJECTIVE OF
THE NINTH PLAN The Ninth Plan was developed in the context of
four important dimensions of state policy, viz. Quality of life,
generation of productive employment, regional balance and self-
reliance The Ninth Plan focused on accelerated growth, recognising
a special role for agriculture for its stronger poverty reducing and
employment generating effects, which will be carried out over a 15
year period. The focus of the Ninth Plan was on: "Growth with
Social Justice and Equality'. The objectives of the Ninth Plan as
approved by the National Development Council are as follows:
 Tenth Five Year Plan (2002-2006) :

• OBJECTIVES, TARGETS AND STRATEGY Background of Developments

in 1990's The Tenth Plan (2002-07) was prepared against a
backdrop of high expectations arising from some aspects of the
recent performance. GDP growth in the post-reforms period
improved to an average of about 6.1 per cent in the Eighth and
Ninth Plans from an average of about 5.7 percent in the 1980s,
making India one of the ten fastest growing developing countries.
Encouraging progress was also made The percentage of population
in poverty continued to decline, even if not as much as was
targeted. Population growth decelerated below 2 per cent for the
first time in four decades. Literacy increased from 52 per cent in
1991 to 65 per cent in 2001 and the improvement was evident in all
States. Sectors such as software services and IT enabled services
have emerged as new sources of strength creating confidence
about India's potential to be competitive in the economy Tenth Five
Year Plan (2002-2006)