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Q1. The emphasis of the five-year plans in India has changed significantly from the years of planning.

Examine this statement with a critical review of the changing focus


The first five yearly plans had been laid down in 1951. Ever since, almost each successive plan has changed its priorities and emphasis. As the preface of the 4th five yearly plan stated We have carried out three Five Year Plans. Each Five Year Plan has addressed itself especially to problems which have emerged either because of new political and economic developments in the country and in the world, or as a consequence of progress already achieved. The priorities and the emphasis have necessarily changed and have had to be adjusted from Plan to Plan, but we have always kept in view our long-term objectives. The first five yearly plan (51-56) was targeted towards reducing poverty and improving standard of living in the country. For this purpose, funds were allocated for major industrial projects (e.g. Bhakra Nangal dam), technical schools (IIT, IIM) .The government took steps to rehabilitate the landless workers, whose main occupation was agriculture who were granted fund for experimenting and undergoing training in agricultural know how in various cooperative institutions. 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. The second plan, then following a similar trend focused on rapid industrialization with particular emphasis on development of the public sector. The first major change in the emphasis came in the third plan. India had fought and lost a war against China following a partial victory in war against Pakistan. A drought in 1965 further exacerbated the scenario leading to an inflation and price rise. Thus, the immediate priority became defence expenditure to arm up the defence forces and price stabilization. Major defence deals were inked in this period. Stress was laid on the increasing the agricultural yield by initiating the green revolution in 1965-1966. The fourth five year plan (69-74) continued its emphasis on defence. The nuclear tests were carried out at this time and funds allocated for development were diverted for war effort during the 1971 war against Pakistan. Till now, the first priority of the first two five yearly plans of alleviation of poverty were not met. Thus it was decided that the next five yearly plan (74-79) would lay stress on employment, poverty alleviation and justice. The sixth five year plan (80-85) marked the beginning of economic liberalisation. Family planning was also expanded in order to prevent overpopulation. Price control measures were removed. As a consequence the prices of various goods increased leading to growth in the standard of living of the residents of India. The seventh five year plan aimed at up gradation the industrial sector and enable India to establish itself as one of the developed countries of the world.

8th Five Year Plan commenced on 1992 and carried on till 1997. The basic objective of this period was the modernization of industrial sector. Also, rectification of certain flawed plans and policies were also done under this five year plan. 9th Five Year Plan was formulated for solving the economic and social problems existing in the country. The governments realized that the latent economic reserves of the country which were still not being explored should be utilized for the overall development and benefit of the Indian economy in the coming five years. Taking into consideration the past weaknesses, the 9th Five Year Plan endeavoured to formulate fresh actions to initiate improvement in the overall economic and social sectors of the nation. To this effort, there was mutual contribution from the general population of India as well as the governmental agencies Taking note of the inabilities of the earlier plans, the Tenth five year plan decided to take up a resolution for immediate implementation of all the policies formulated in the past. The primary aim of the 10th Five Year Plan was to renovate the nation extensively, making it competent enough with some of the fastest growing economies across the globe and initiate an economic growth of 10% on an annual basis. The 11th five year plan intended to accelerate GDP growth from 8% to 10% and increase

agricultural GDP growth rate to 4% per year. Further improvement in standard of life was to be done by creation of jobs, reducing infant mortality, improving life span, reducing school drop outs etc. Thus, as seen above, the planners had to take account of the political and social scenarios of the country while formulating the plans and this resulted in change of emphasis almost every time. This sort of hampered the growth of the nation. Before objectives of previous plans were met, new were set down. An alternate change of government from Congress to BJP since 70s saw plans downsizing the objectives of the previous ones. Though some emphasis change like in defence was necessary, at other times such a change may not have been required

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