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Indian Economic Planning And Five Years Plans In India

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Introduction -Indian Economic Planning And Five Years Plans In India

Economic Planning is a term used to describe the long term plans of government to coordinate and develop the economy with efcient use of resources.
Economic Planning is the making of major economic decisions. What and how is to be
produced and to whom it is to be allocated by the conscious decision of a determinate
authority, on the basis of a comprehensive survey of the economic system as a whole.
Economic planning in India was stared in 1950 after independence, it was deemed
necessary for economic development and growth of the nation.
The idea of Five year planning was taken from the erstwhile Soviet Union under socialist
inuence of rst Prime Minister Jawahar lal Nehru.

Recent

Features of economic planning:

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Fixation of denite socio-economic targets;

Prudent efforts to achieve these targets within a given time period;
Existence of a central planning authority;
Complete knowledge about the economic resources of the country;
Efcient utilization of limited resources to get maximum output and welfare.
Economic self-reliance.

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Social justice and reduction of inequalities.

Modernization of the economy.

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Economic stability for prosperity

Agreement

Objective of Economic Planning in India

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Indian Economic Planning And Five Years Plans In India

Rapid Economic Development
Quick Improvement in the Standard of Living

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Removal of Poverty:
Rational Allocation and Efcient Utilization of Resources

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Increasing the Rate of Capital Formation

Reduction in Unequal Distribution of Income and Wealth

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Reduction of Unemployment and Increase in Employment Opportunities

Reorganization of Foreign Trade
Regional Balanced Development
Indian Economic Planning And Five Years Plans In India

Plans

Analysis

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It was based on Harrod-Damor model

Community development programme was launched in 1952
Emphasised technical, price stability, power and transport
It was more than a success, because of good are blessed in the
last two years
Major focus point of rst 5-year plan:
Industrial sector

First

Energy and Irrigation

Transport and Communications

plan(1951 to
56)

Land rehabilitation
Social services
Developments of agriculture and community
Miscellaneous issues in India
Some important events that took place during the tenure of the 1st veyear plan: The followingIrrigation projects were started during that
period:
MetturDam
HirakudDam
BhakraDam.

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Notes ,E-Books,Test

Also called Mahalanobis plan after its chief architect.

Second
plan(1956 to
61)

Its objective was rapid industrialisation

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Advocated use imports which led to emptying of funds leading to

foreign loans. It shifted basic emphasis from agriculture to

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industry far too soon. During this plan, price level increased by

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30% against a decline of 13% during the rst plan

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The Tata Institute of Fundamental Research was established as a

research institute. In 1957 a talent search and scholarship
program was begun to nd talented young students to train for

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work in nuclear power.

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At its conception time, it was felt that Indian economy has

entered it takeoff stage. Therefore, a was to make India a self

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reliant and self generating economy.

Third
Technology
plan(1961 to
66)

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Also,
it was
realised
from
ofEducation
rst two planes
that
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10

agriculture could be given the top priority to sufce the

requirements of export and industry.
Complete failure due to unforeseen misfortunes viz. Chinese
aggression(1962), Indo Pak war (1962) , Indo Pak war (1965 ),
Seve rest drought to 100 years (1965 to 66)

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Plan holiday for three years. The prevailing crisis in agriculture

Three
annual
plans(1966
to 69)

and serious food shortage necessitated the emphasis on

agriculture during the annual plans.

Series

During these plans a whole new agriculture strategy involving

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widespread of distribution of highly-yielding varieties of seeds,

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the extensive use of fertilisers, exploitation of irrigation potential

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and soil conservation was put into action to tide over the crisis in
agriculture production.

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During the annual plans, the economy basically absorbed the

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shocks given during the third plan, making way for a planned

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growth

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Main emphasis on agricultures growth rate so that chain reaction

Fourth

Technology

plan(1969 to
74)

can start
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Fared
wellAffairs
in the rst two
with record
production,
three
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last
years failure cause of poor monsoon.
Had to tackle the inux of Bangladeshi refugees before and after
1971 Indo Pak war

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The fth plan repaired and launched by D.D Dhar proposed to

Fifth plan
(1974 to 79 )

achieve two main objectives viz removal of poverty(Garibi Hatao)

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and attainment of self reliance, through promotion of high rate,

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better distribution of income and a very signicant growth in the

domestic rate of saving.

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the plan was terminated in 1978 (instead of 1979 ) when Janata

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government came to the power.

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Notes ,E-Books,Test

There were two sixth plans. One by Genta government.(For 78 to

Rolling
plan(1978 to
80)

73) which was in operation for two years only and the other by
Congress government when it returned to power in 1980

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the Janata government plan is also called Rolling plan

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Sixth

Objectives: Increase in national income, modernisation of

plan(1980 to

technology, ensuring continuous decrease in poverty and

85)

unemployment, population control through family planning etc.

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The seventh plan emphasized policies and programmes which

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aimed at rapid growth in food grains production, increased

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employment opportunities and productivity within the framework

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of basic tenants of planning.

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It was a great success, the economy recorded 6% growth rate

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against the targeted 5%

Seventh
plan(1985 to
90)

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The thrust areas of the seventh Five-year Plan were:

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Social Justice
Removal of oppression of the weak

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Using modern technology

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Agricultural development
Anti-poverty programs

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Full supply of food, clothing, and shelter

Increasing productivity of small- and large-scale farmers

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Making India an Independent Economy

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The eighth plan was postponed by two years because of political

upheavals at the Centre and it was launched after a worsening
balance of payment position and ination during 1990-91

Eighth

the plan undertook various drastic policy measures to combat the

plan(1992 to

bad economic situation and to undertake an annual average

97)

growth of 5.6%
some of the main economic performance during eighth plan
period were rapid economic growth, high growth in exports and
imports, improvement in trade and current account decit.

Ninth
plan(1997 to

It was developed in the context of four important dimensions:

2002)

balance and self-reliance.

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Tenth plan
(2002 to
2007)

quality of life, generation of productive employment, a regional

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Its objectives included achieving the growth rate of 8%, reduction

of poverty ratio to 20% by 2007 and 210% by 2012, universal
access to primary education by 2007, increase in literacy rate to
72% within the plan period and to 80% by 2012

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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 of 4% per year to ensure a
broader spread of benets.
Reduce drop out rates of children from elementary school from
52.2% in 2003-04 to 20% by 2011-12
Increase the literacy rate for persons of faith seven years or more

Eleventh
plan(2007

to 85%

to 2012)

reduce infant mortality rate(MR) 28 and maternal mortality

ratio(MMR) to 1 part 1000 live births.

raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950
by 2016-17
Ensure electricity connection to all village and BPL households by
2009 and the round-the-clock power by the end of the plan
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increase forest and free cover by the ve percentage points

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faster, sustainable and more inclusive growth.proposes a

Twelfth plan

growth target of 8 percent.Raising agriculture output to 4 per

(2012 to
2017)

cent.
Manufacturing sector growth to 10 %
Target of adding over 88,000 MW of power generation capacity.

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