Five Year Plans

  • These are the various five year plans and major achievements ,have tried to make it small and useful , add up all that you like .The five years plan in India is framed, executed and monitored by the Planning Commission of India. Jawahar Lal Nehru was the chairman of the first Planning Commission of India.

    The duty of the chairman of the planning commission in India is served by the Prime Minister of the country. The tenth plan finished its term in March 2007 and the eleventh plan is currently underway.

    Objectives and success of different Five Year Plans in India:

    •    1st Five Year Plan (1951-56)

    It aimed towards the improvement in the fields of agriculture, irrigation and power and the plan projected to decrease the countries reliance on food grain imports, resolve the food crisis and ease the raw material problem especially in jute and cotton.

    Nearly 45% of the resources were designated for agriculture, while industry got a modest 4.9%.The focus was to maximize the output from agriculture, which would then provide the momentum for industrial growth.

    1st five year plan proved dramatic success as agriculture production hiked, national income went up by 18%, per capita income by 11% and per capita consumption by 9%. Heerakud,  bhakra nangal dams commisioned  UGC and IITs were setup by the end of this plan

    •    2nd Five Year Plan (1956-61)The plan followed the Mahalanobis model, an economic development model.

    It projected towards the agriculture programs and to meet the raw material needs of industry, besides covering the food needs of the increasing population. The Industrial Policy of 1956 was socialistic in nature. The plan aimed at 25% increase in national income.

    Second Five Year Plan showed a moderate success. Agricultural production was greatly affected by the unfavorable monsoon in 1957-58 and 1959-60 and also the Suez crisis blocked International Trading increasing commodity prices.

    atomic energy commision was setup in this plan .steel plants at Bhilai, Durgapur, and Rourkela were established

    •    3rd Five Year Plan (1961-66)

    Plan’s main motive was to make the country self reliant in agriculture and industry and for this allotment for power sector was increased to 14.6% of the total disbursement.

    The plan aimed to increase national income by 30% and agriculture production by 30% and to promote economic developments in backward areas; unfeasible manufacturing units were augmented with subsidies and agriculture production by 30%.

    The 3rd five year plan was affected by wars with China in 1962 and Pakistan 1965 and bad monsoon.

    panchayat elections were held.

    •    4th Five Year Plan (1969-74)

    This five year plan mainly emphasized on encouraging education and creating employment opportunities for the marginalized section of the society as improvement in their standard of living would only make the country economically self- reliant.

    Another aim of the plan was to create awareness about the Family planning program among Indians.The achievements of the fourth plan were not as per the expectations as agriculture and industrial growth was just at 2.8% and 3.9% respectively.nuclear test of 1974 and operation green revolution.

    •    5th Five Year Plan (1974-79)

    The fifth plan mainly aimed on checking inflation and various non-economic variables like nutritional requirements, health, family planning etc. The plan anticipated 5.5% growth rate in national income.

    The plan could not complete its 5 year tenure and was discontinued by the new Janata (morarji desai )government in the fourth year only.

    national highway system was also introduced .

    •    6th Five Year Plan (1980-85)

    The 6th five year plan was formulated by the Congress government in 1980 which equally focused on infrastructure and agriculture. The plan was successful in achieving a growth of 6% pa.

    •    7th Five Year Plan (1985-1989)

    The plan focused at improving various sectors like welfare, education, health, family planning and also encouraged employment opportunities. The plan introduced programs like Jawahar Rozgar Yojana.

    This plan was proved successful in spite of severe drought conditions for first three years consecutively.

    •    Period (1989 – 1991)

    This period was of political instability hence, no five year plan was implemented during the period; only annual plans were made for the period between 1990 and 1992. The country faced severe balance of payment crisis.Dr. Manmohan Singh (currently, Prime Minister of India) 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.

    •    8th Five Year Plan (1992-1997)

    The eighth plan aimed towards modernization of industries, poverty reduction, encouraging employment, strengthening the infrastructure. Other important concerned areas were devaluation of rupees, dismantling of license prerequisite and decrease trade barriers.

    The plan helped to achieve an annual growth rate of 5.6% in GDP and also controlled inflation.

    •    9th Five Year Plan (1997-2002)

    The ninth five year plan focused on increasing agricultural and rural income and to improve the conditions of the marginal farmer and landless laborers.

    The plan helped to achieve average annual growth rate of 6.7%.

    •    10th Five Year Plan (2002-2007)

    The 10th five year plan targeted towards making India’s economy as the fastest growing economy on the global level, with an aim to raise the growth rate to 10% and to reduce the poverty rate and increase the literacy rate in the country.

    The plan showed success in reducing poverty ratio by 5%, increasing forest cover to 25%, increasing literacy rates to 75 % and taking the economic growth of the country over 8%.

    •    11th Five Year Plan (2007-2012)

    The eleventh five year plan targets to increase GDP growth to 10%, to reduce educated unemployment to below 5% while it aims to reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000 live births, reduce Total Fertility Rate to 2.1  in the health sector.

    The plan also targets to ensure electricity connection and clean drinking water to all villages and increase forest and tree cover by 5%.Accelerate GDP growth from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016-17Raise real wage rate of unskilled workers by 20 percent.Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17Ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power.

9 thoughts on “Five Year Plans

      • Two-three years is a very short time to implement the plan and evaluate it. Moreover, planning is not done in terms of 5 years alone; a perspective targeting has to be done where the Planning Commission lays down basic national objectives for long-term development, say 15-20 years. So, in comparison of 15-20 years long-term goals, 2-3 years is considerably as a very small period.

        Moreover, Five year plan was a concept of Soviet Union and was based on the Theory of Productive Forces. India adopted it from there. Most of the Socialsist/Communist countries adopted the concept of Five year plan from Five-Year Plans for the National Economy of the erstwhile Soviet Union.

  1. thanks and sir can we say that this planning commission has reduced the scope of finance commission which is an constitutional body ???????

  2. sir , as nearly all grants have been given to states by this planning commission , by using article 282, it has undermine finance commission role ,, today states look more to the planning commission than finance commission ,, then y dont we merge these two by an constitutional amendment ,which will help us to integrate there efforts , as it has been seen that sometimes there functions over lap each other

  3. Sir,
    What are the Highlights of 12th, 13th, 14th five year plans. Which segments are going to be developed. where can i find detailed information on this. Kindly inform.

  4. Interesting.. Could you please provide a table of target vs achivement for all plans. Also, a comparitive outlay for each broad category in each of the plan – actual and in relation to total tax receipts of gov as well as percentage of GDP?

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