Role of Five-Year Plans in Indian Economy
“From Centralized Planning to Inclusive
PresentedGrowth
by: Avishi (2107/22) ,Vansh
(1951–2017)”
(1006/22)
Introduction
After independence, In 1950, India adopted The First Five Year Plan
India faced issues like planned economic (1951–56) laid the
poverty, illiteracy, development by foundation for a
poor forming the Planning systematic
infrastructure, and Commission. development strategy
stagnant agriculture. inspired by the Soviet
model.
Objectives
1. Economic Growth: Increase national income
and GDP. of the Five
2. Self-Reliance: Reduce dependence on imports,
especially in food and technology. Year Plans
3. Social Justice: Reduce poverty and income
inequality.
4. Modernization: Promote science, technology
and urbanization.
5. Employment Generation: Create jobs in rural
and
urban sectors.
6. Balanced Regional Development: Prevent
concentration
of wealth in certain areas
Institutional Framework of
Planning
Planning Commission (1950): Central body
for drafting and implementing 5-year plans.
National Development Council (NDC):
Reviewed and approved the plans.
NITI Aayog (2015): Replaced the Planning
Commission to promote cooperative
federalism and policy think tank role.
Overview of All Five-Year Plans (1951–
Plan Year Focus Area Major Outcome
1st 2017)
1951–56 Agriculture, Irrigation
Bhakra Nangal Dam,
3.6% growth
Steel Plants, 4.1%
2nd 1956–61 Industrialization
growth
Food shortage, war
3rd 1961–66 Self-reliance
impact
4th 1969–74 Growth with stability Green Revolution start
5th 1974–79 Poverty Removal "Garibi Hatao", inflation
6th 1980–85 Industrial productivity Telecom & IT push
7th 1985–90 Employment, efficiency Growth-oriented
LPG reforms boost
8th 1992–97 Liberalization
growth
9th 1997–2002 Equity, Employment Moderate results
10th 2002–2007 Double-digit growth aim 7.6% achieved
Focus on education,
11th 2007–2012 Inclusive growth
health
Faster, sustainable
12th 2012–2017 Mixed performance
growth
The First Three Five Year Plans
First Plan (1951–56): Second Plan (1956–61):
Focused on agriculture, Based on Mahalanobis
irrigation, and energy. model – focus on heavy
Major projects: Bhakra industries and public
Nangal Dam, Hirakud Dam sector. Creation of steel
Achieved GDP growth: plants in Bhilai, Rourkela,
3.6% and Durgapur.
(target was 2.1%) Growth: 4.1%
Third Plan (1961–66):
Emphasized self-reliance,
education, and defense.
Failed due to Indo-China
War (1962), Indo-Pak war
(1965), and drought.
Growth dropped to 2.8%
Pl a n Holid ays a nd
Re su mp tion (1966–1980)
Due to wars, Fifth Plan (1974–
Fourth Plan (1969– 79): "Garibi Hatao"
droughts, and 74): Focus on
economic crisis, campaign by Indira
growth with Gandhi; Focus on
Plan Holidays stability and self-
(1966–69) replaced poverty
reliance; Green eradication and
five-year plans with Revolution began.
annual plans. employment.
Post-1980
Sixth Plan (1980–85):
Shift toward technology and modernization of Development
industries.
Start of telecom revolution and oil refineries. s
Seventh Plan (1985–90):
Focused on productivity, social justice, and
employment. Increased allocation to
education, agriculture.
Liberalization Era –
1990s Onwards
Eighth Plan (1992–97):
•First plan post-1991 Economic
Reforms.
•Emphasized privatization,
globalization, disinvestment.
•GDP growth: 6.7% (higher than
Ninth and Tenth Plans: target)
•Focused on human
development, agriculture, and
service sector growth.
•Tenth Plan aimed for 8% growth
and achieved 7.6%
11th and 12th Five-
Year Plans
11th Plan (2007–12): 12th Plan (2012–17):
•Slogan: “Faster and More •Aimed at sustainable
Inclusive Growth” development with inclusive
•Key sectors: Health, education, growth.
rural infrastructure •Emphasis on energy security,
•Success in MGNREGA, Sarva transport, urban
Shiksha Abhiyan development.
Achievements of Five-Year
Plans
• Green Revolution: India became self-sufficient in food.
• Industrial Growth: Strong base in steel, cement,
telecom.
• Infrastructure Development: Roads, dams, power
generation.
• Social Indicators: Literacy up from 18% (1951) to
74% (2011).
Limitations & Criticism
• Inefficiencies in implementation
• Over-dependence on public sector
• Delays in infrastructure projects
• Increasing income inequality
• Frequent mismatch between targets
and achievements
Transition to NITI Aayog
• NITI Aayog replaced Planning Commission
in 2015.
• Works on cooperative federalism, real-time
policy feedback, and grassroots level
planning.
• Focuses on SDGs, innovation, and
evidence-based policy.
• Role of think tank, rather than
centralized planner.
Conclusion
• Five-Year Plans helped transform
India's economy from agrarian to
mixed industrial economy.
• Significant gains in food security,
industrial output, and social welfare.
• Despite challenges, planning created
a long-term vision.
• NITI Aayog continues the legacy
through strategic policy planning.
Thank
You
