Five year plans

Achievement & Implementation

Objectives of the 1st five year plan(1951 to 1961):

The primary aim of the 1st five year plan was to improve living standards of the people of India. This could be done by making judicious use of India's natural resources. The total outlay of the 1st five year plan was worth Rs.2,069 crore. This amount was assigned to different sectors which included: Industrial sector Energy, Irrigation Transport, Communications Land rehabilitation Social services Development of agriculture and community Miscellaneous issues The target set for the growth in the gross domestic product was 2.1percent every year. In reality, the actual achieved with regard to gross domestic product was 3.6 percent per annum. This is a clear indication of the success of the 1st five year plan.

Outlays & assessment

Total proposed outlay was Rs.3,870 crore Rs.2,070 crore was for public sector but actual was Rs.1960 crore. Investment in private sector Rs.1800 crore Target for NIG was 11% but the actual National income growth was 18% Food production target was 61.6 MT but actual it was 65.8MT

Some important events that took place during the tenure of the 1st five year plan:
The following Irrigation projects were started during that period: Hirakud Dam Bhakra Dam. The government had taken steps to rehabilitate the landless workers, whose main occupation was agriculture. These workers were also granted fund for experimenting and undergoing training in agricultural know how in various cooperative institutions. Soil conservation, was also given considerable importance. The Indian government also made considerable effort in improving posts and telegraphs, railway services, road tracks, civil aviation. Sufficient fund was also allocated for the industrial sector. In addition measures were taken for the growth of the small scale industries.

Objective of 2nd five year plan

Industries got more importance in the 2nd five year plan. The focus was mainly on heavy industries. The Indian government boosted manufacturing of industrial goods in the country. This was done primarily to develop the public sector. Annual growth rate 5% Reduction in inequalities of income & distribution

outlay
Figures in crore

Public Irrigation Agriculture & Industry Social sector &power community & mining servic e 4672 913 560 890 945

Some important events that took place during the tenure of the 2nd five year plan:

As many as steel plants including the ones in Durgapur, Jamshedpur as well as Bhilai were set up as per the 2nd five year plan. Hydroelectric power plants were formed during the tenure of the 2nd five year plan. There was considerable increase in production of coal. The North eastern part of the country, witnessed increase in the number of railway tracks. Atomic Energy Commission came into being. The Commission was established in the year 1957. Tata Institute of Fundamental Research was born. The institute conducted several programs to search for talented individuals. These individuals would eventually be absorbed into programs related to nuclear power.

Objectives of the 3rd five year plan:

In addition to the above measures and proposals, the Planning Commission aimed at the following: Increasing the national income by 5 percent per annum. Making India self sufficient by increasing agricultural production. This step was taken to ensure that India does not have to bank on others for food products. Minimizing rate of unemployment. Ensuring that people enjoy equal rights in the country.

outlay

Assessme nt

Proposed outlay wasRs.11,600 crore Rs.7500crore was for public sector The actual public sector outlay was however Rs.8577 crore

Fall in agriculture 82MT to 72MT Industrial production fell below expectation Devaluation of currency High levels of inflation

Main events of the 3rd five year plan (1961 to 1966):

3rd five year plan laid considerable stress on the agricultural sector. However, with the short lived Sino Indian War of 1962 India diverted its attention to the safety of the country. Again, during the period 1965 to 1966, owing to Green Revolution, once again agriculture attracted attention. Due to the Sino Indian War, India witnessed increase in price of products. The resulting inflation was cost push in nature. Many dams were constructed during this period. India got many fertilizer plants and cement making plants. Abundant production of wheat took place in Punjab.

Main events of the 3rd five year plan (1961 to 1966):

Role of the states increased and they were given more prominence. Many primary schools had started functioning in the village areas. Various bodies looking into matters related to secondary education were also formed. To promote democracy, there was commencement of the Panchayat elections. There was formation of state electricity boards. The state governments were entrusted with the responsibility of constructing roads.

Objective of 4th five year plan

To achieve stability and progress To achieve an overall rate of growth of 5.7% annually To make stable the prices of food grains and other basic commodities & to achieve a growth rate of 5.6% in the agricultural sector. To raise exports at the rate of 7% annually To correct regional imbalances

Outlay Assessment

Total outlay was 24880crore Rs. 15900 crore for public sector Private sector outlay was 8980 crore Actual for public sector was 15779 crore

National income growth rate was 33.5% Agri-prod 99.5MT to 125 MT Rise in industrial production 4.5% to 7%

The 4th five year plan of India also served as a stepping stone for the economic growth.
The following section will highlight the main events that had taken place under the 4th five year plan. 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. India had hardly recover when it was struck by drought. India also had a time of recession. Due to recession, food crisis and deficiency, India did not pay much attention to long term goals. Instead, It started taking measures to overcome the crisis.

Food grains production increased to bring about self sufficiency in production. With this attempt, gradually a gap was created between the people of the rural areas and those of the urban areas.

Cont.

The need for foreign reserves was felt. This facilitated growth in exports. Import substitution drew considerable attention. All these activities widened the industrial platform. 4th Five Year Plan an alteration in the socio economic structure of the society was observed.

Objectives of fifth five year plan

5.5% overall rate of growth in GDP Expansion of productivity employment and full utilization of existing skills & equipment Emphasis on additional production of 125MT To promote export & import substitution Reduce social ,economic & regional inequalities in the country

Outlay Assessment

Total outlay was53410 crore Rs.37250 crore for public sector Actual outlay for public sector was 39426 crore

More liberal imports were allowed Private sector was extended The plan was terminated due to political change

Sixth five year plan 19801985

To eliminate unemployment To raise the std of living of poorest of masses To reduce disparities in income & wealth To provide basic needs of life To achieve self reliance

Outlay

Assessment

Rs.158710 crore was proposed Rs.97500 crore for public sector Actual public sector outlay was 110967 crore

Annual growth 55 Food production increased to 151.5MT The plan paid special attention to the removal of poverty through rural development programmes

Other achievements
Transport and Communication System The transport and communication system also improved under this Plan. The National Highways were all built during this time . the betterment of the traffic system in India. During this time the Indian currency was devalued and this led to a dramatic increase in the number of foreign travelers in India thus helping India to become a tourist destination. New Introduction on the Economic Front Economic Liberalization was introduced for the first time in India during this period. As a consequence the prices of various goods increased leading to growth in the standard of living of the residents of India. Measures Against Population Explosion Family Planning was implemented for the first time in India . Family Planning helped to create awareness among the Indians regarding population.

Seventh five year plan 1985-90

The primary aim of the five year plan was to upgrade the industrial sector and enable India to establish itself as one of the developed countries of the world. To generate more scope of employment for the people of India. To produce more in terms of food which would lead to an overall increase in productivity.

Outlay

Assessment

Rs 180000 crore was for public sector Actual expenditure was 218730 crore

Growth rate of 6% Targeted foodgrain production 178MT but actual was 171MT

The basic issues on which this plan put stress were:

Introduction and application of modern technology Justice meted out to people from various social status Improving the position of the weak in the Indian society Development of agriculture Reducing poverty in India Assuring the essentials of food, shelter and clothing to the people Striving to achieve independence as per the Indian economy is concerned

8th five year plan(1992-97)

The basic objective of this period was the modernization of industrial sector. Proposed growth rate of 5.6% per annum. This plan focused on technical development. Through this plan the reduction of insufficiency and foreign debt was aimed at. The modification of certain faulty plans and policies were also done under this five year plan. During this period only India received a coveted opportunity to become a member of the World Trade Organization on January 1st 1995.

Other objectives

Generation of adequate employment Containment of population growth through peoples co-operation Universalization of elementary education Provision for safe drinking water & primary health care facilities Growth &diversification of agriculture to achieve self sufficiency Strengthening the infrastructure

Outlay

Assessment

Rs.798000 crore total 434100 crore for public sector 186235 crore for state & union territory

Actual growth rate 7.5% in last three yrs of 8th five year plan Annual growth in agri sector was 3.9%

Agricultural Activities During this Period

Agriculture happens to be the largest contributor to the GDP of India. In fact two third of the work force was dependent on agriculture. Industries also made use of agricultural produce as inputs in their production process. Self-Sufficiency in Agricultural Production Production of food increased to 176.22 million from 51 million which was a huge leap in comparison to the previous years. Results show that the 8th Five Year Plan had been more successful in this regard as the deficit was reduced by 0.7% in the 8th Five Year Plan and by only 0.1% in the 7th Five Year Plan. With regard to domestic savings as a percentage of GDP the 8th Five Year Plan reached 24.4% while in the 7th Year Plan the figure was 20.2%. As far as the contribution of the export earnings is concerned the 8th Year Plan contributed 10.1% to the GDP while the 7th Year Plan contributed 9.9% to the GDP. The import volume as a percentage of GDP was also more during the 8th Five Year Plan (10.9% ) compared to the 7th Five Year Plan (10.3%). In a nutshell the 8th five year Plan was more successful in meeting its objectives as compared to the previous five year plan.

9th five year plan(1997-02)

Like all other Five Year Plans made so far, the 9th Five Year Plan (1997-2002) is formulated, executed and supervised by the Planning Commission. In the Ninth Five Year Plan period from 1997 to 2002, the recorded rate of growth was merely 5.35%. However, this economic growth rate is a percentage point lesser than the GDP growth of 6.5% targeted during this period.

Primary objectives of the 9th Five Year Plan:

Each and every Five Year Plan of the Indian government is formulated, keeping in mind the fulfillment of certain objectives. The 9th Five Year Plan is no exception. The main objective of this Plan is to achieve the following goals: Industrialization at a rapid pace Reduction in poverty level Gaining self-sufficiency on local resources Complete employment for all Price stabilization should be initiated to accelerate up the rate of growth of the Indian economy Control the ever-increasing rate of population Creating an independent market, for enhancing private financial investments Promotion of social events like conservation of specific benefits for special social groups, female empowerment, etc. Achieving self sufficiency in food production Generation of equal opportunities for employment and taking steps to reduce poverty

Outlay

Assessment

Total was Rs 859000 crore For public sector Rs.290000 crore For state 195000 crore

Rate of growth declined 6.7% to 5.3% Agriculture also decline 4.69 to 2.06 Manufacturing also 7.58 to 4.51

Reasons for down fall during 9th plan was Cyclone In Orissa ,Earthquake In Gujarat, Kargil War etc

Tenth five year plan (2002-2007)

The

national development council headed by prime minister Atal Bihari Vajpayee approved unanimously in dec 2002 the 10th five year plan, envisage an 8% annual GDP growth

The main objectives of the 10th Five-Year Plan were:

Reduction of poverty ratio by 5 percentage points by 2007; Providing gainful and high-quality employment at least to the addition to the labour force; All children in India in school by 2003; all children to complete 5 years of schooling by 2007; Reduction in gender gaps in literacy and wage rates by at least 50% by 2007; Reduction in the decadal rate of population growth between 2001 and 2011 to 16.2%; Increase in Literacy Rates to 75 per cent within the Tenth Plan period (2002 to 2007);

The main objectives of the 10th Five-Year Plan were:

Reduction of Infant mortality rate (IMR) to 45 per 1000 live births by 2007 and to 28 by 2012; Reduction of Maternal Mortality Ratio (MMR) to 2 per 1000 live births by 2007 and to 1 by 2012; Increase in forest and tree cover to 25 per cent by 2007 and 33 per cent by 2012; All villages to have sustained access to potable drinking water within the Plan period; Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012; Economic Growth further accelerated during this period and crosses over 8% by 2006.

thanks