Project Presentation

on

Significance of Five Year Plans in India

GROUP NO. 14
OUTLINE
OBJECTIVES

To find out present

Reason for introduction of

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 FIRST FIVE YEAR PLAN (1951-1956)
Highlights:
o Main thrust of the first five year plan was to reconstruct the economy.
o Stressed on Agriculture and irrigation got the highest priority.
o Strived for maximum production, full employment, lower prices and equity of wealth.
o Proposed growth rate was 2.1% but ended up achieving 3.6% growth.

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 SECOND FIVE YEAR PLAN (1956-1961)
Highlights:
o Initiate and accelerate the process of industrialization in a country.
o Long term objective was the development of heavy industries.
o Share of industry and minerals increased from 4% to 20%.
o Strived for maximum production, full employment, lower prices and equity of wealth.
o Per capita income growth rate was only 1.9% p.a. but the growth rate of national
income was 4.27% p.a.
o Proposed growth rate was 4.5% but achieved only 4.2%.

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 THIRD FIVE YEAR PLAN (1961-1966)
Highlights:
o Aimed to make India a self-generating and self-reliant economy.
o Targeted pushing up the economy to catalyze development and self-sustaining growth.
o Socialist pattern of society was adopted to attain positive goals and to raise living
standards.
o National income rose by only 12.5% as against its target of 25-30 %.

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 FOURTH FIVE YEAR PLAN (1969-1974)
Highlights:
o Sustainable growth and self reliance with adequate growth rate was the main objective.
o Accelerate the progress towards a socialist society.
o Emphasis on industry, transport, power and mining (26.5 %) whereas agriculture was
allotted only 18% of total budget.
o The annual growth rate of national income was only 3.8% .
o First underground nuclear test was performed and 14 major Indian Banks were
nationalized.

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 FIFTH FIVE YEAR PLAN (1974-1979)
Highlights:
o Objectives of the plan were ‘removal of poverty’ (Garibi Hatao) and
self-dependence.
o Formulated during period of sharp increase in prices of food, fertilizers and oil.
o Government opted for smaller plan sacrificing industrial core & unrealistic
projections.
o Proposed growth rate was 5.5% but was able to achieve only 4.7%.

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 SIXTH FIVE YEAR PLAN (1978-1985)
o Two five year plans were implemented:
 Proposed by the Janatha Government.  ROLLING PLAN (1978-1980)

Highlights:
o Approved programs like unemployment removal, poverty & inequalities reduction and
continuous progress towards self-reliance.
o Stressed on the development of cottage and small industries based on labor intensive
techniques rather than development of heavy industry.
o Proposed growth rate was 4.7 % per annum but during 1979-1980, the growth rate
decreased by 5.2%.
o Plan was terminated before period because the Congress came into power.

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 SIXTH FIVE YEAR PLAN (1978-1985)
o Two five year plans were implemented:
 Proposed by the Congress Government. (1980-1985)

Highlights:
o Considered able to cope up for all the loss caused by inapt execution of the former plan.
o Formulated under huge financial constraints as India and the world at large were
combating inflation and the rising fuel prices.
o First plan which emphasized on giving social justice to all the sections.
o Tried to achieve economic liberalization by removing price constraints which lead to the
closed ration shops and increased cost of living.
o Aimed growth rate was 5.2% but ended up achieving 5.7% growth.

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 SEVENTH FIVE YEAR PLAN (1985-
1990)
Highlights:
o Proposed with a 15 year perspective to create self-sustaining growth by 2000.
o Envisaged to build self-reliance by developing strong and independent national
economy that is competent enough at a global level.
o Proposed strategies for poverty elimination, employment creation, basic needs
fulfillment (food, clothing and shelter), elementary education and health facilities for all.
o Plan which emphasized on the importance of human resource development.
o Stressed on the upgradation of technology, reduction of production cost, introduction
of new products and acceleration of development in selected industries.
o Proposed growth rate was 5% but was able to achieve the growth rate of 6%.

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 EIGHTH FIVE YEAR PLAN (1992-1997)
o Political instability in India led to the introduction of two intermediate Annual plans
between 1990 and 1992.
o The actual plan was introduced keeping in view the poor performance achieved in
economic growth due to the two previous unstable years.

Highlights:
o Many fiscal and economic reforms made which aimed at privatizing and liberalizing the
Indian economy.
o Aimed move the country from a centralized economy to a market led economy.
o Able to curb the inflation rate from 16.8% to 3.8%.
o Proposed growth target on the backdrop of economic instability, was 5.6% but ended
up achieving approximately 6.7%.

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 NINTH FIVE YEAR PLAN (1997-2002)
o Tenure decreased to 3 years due to political crisis, weather upheavals and Kargil war.
Highlights:
o Emphasized on abridging gap between poor and rich, weak and strong to distribute
equality and satisfaction uniformly.
o Special attention was paid to ensure higher rate of employment, erase the poverty and
catalyze the sustainable human development.
o Special Action Plan (SAP) was introduced to cater the deficiencies in five important
areas of agriculture, food and drinking water, physical infrastructure, health and education &
information technology and water resources.
o Empower rural decision making bodies like Gram Sabha Panchayat to become self-
sufficient.
o Proposed GDP was 6.5 % but only reached 5.5 %.
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 TENTH FIVE YEAR PLAN (2002-2007)
Highlights:
o Foremost target was to bring India out of this crisis by increasing the GDP by
 reducing poverty.
 enhancing employment opportunities.
 assuring a satisfactory level of life quality.
o IMR decreased to 55 per 1000 live births.
o MMR decreased to 2.54 per 1000 live births.
o GDP grew by huge margin and reached 7.8%.

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 ELEVENTH FIVE YEAR PLAN (2007-2012)
Highlights:
o Prime objectives were to achieve improvement in the living standards.
o Aimed at uniform sharing of benefits by the poor and weaker sections of the society,
especially STs, SCs, OBCs and Minorities.
o India recorded average annual economic growth rate of 8%.
o Annual average growth of industry stood at 7.2%.

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 TWELFTH FIVE YEAR PLAN (2012-2017)
Highlights:
o Priority was to bring the economy back to rapid growth while ensuring growth is both
inclusive and sustainable.
o Aimed to provide minorities and other disadvantaged groups in our societies, a fair share
of the benefits of growth and ensure their stake in the process.
o Targeted to reduce poverty, improve regional equality, to generate attractive employment
opportunity for Indian youth and to eliminate gender gaps.
o Proposed GDP was 8.2 % but only reached 8 %.

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COMPARISION OF FIVE YEAR PLANS WITH CHINA

INDIA CHINA
Agriculture was the top priority Industrialization and socialization was
topmost priority
It was based on the Harrod Domar model It follows the Soviet Economic Model
of economic growth.

India is struggling to meet the demands The main problem was the mortality rate
of the Consumer goods

In 2nd plan five year focus was given on China focuses on increasing the cause of
the Industrialization. the socialization.

In the 3rd five year plan, main priority was China gave priority to strengthen the
given on making India a Self Reliant and national security for the possible war.
Self generating economy

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 INDIA CHINA
24,398 crore was allotted for the 4th five year 130 billion Yuan was planned to invest in their
plan, main focus was the Industry , transport 4th five year to develop the infrastructure.
and power rather than the agriculture.

The NI and growth rate was lowered by few China was able to achieve their target with the
because of the liberation of Bangladesh but it annual growth rate of 12.5% gross in Industrial
was success and Agriculture.
India is more focusing towards the short term China is more looking towards long term
goals as their only adjective was the removal goals.
of the poverty.
India restrict on the foreign collaboration on China increased their foreign trade ,their rank
those time. was 28 in 1980 in this field.
India growth was affected by the political They effectively used technology and foreign
instability, population was not worked in India. capital ,population was the big success their
resulted in stable growth.
By their liberalization policy ,India is able to China GNP reached 778 billion Yuan. Their
get the growth more then the expected. rank in Import-Export business was 10th in the
world in 1985
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 CONCLUSION
oThe Five year plans still couldn’t match out to the expectations due to:
 poor implementation of goal strategies.
 inadequacy of nurturing the success of previous governments by latter ones.
 Lack of coordination among different levels of governments.
o More than 300 million people live below the poverty line and millions of children are
undernourished.
o The GNP rate generally ranged between 5%-5.5% on an average which is very less
in comparison to the other countries.
o Planning Commission was controlled by the Central government which often ended up
creating a bias in different states due to indifferences between the powers.

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CONCLUSION
Target Growth v/s Actual Growth
11.00%
Growth Rate

10.00%

9.00%

8.00%

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%
1 2 3 4 5 6 7 8 9 10 11 12

Five Year Plans

Fig.1: Variation of actual and target growth for all the plans

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 CONCLUSION
o The top-to-bottom approach followed in centralized planning that restricted the states to
have greater say in planning of their expenditure share.
o The Planning Commission imposed their verdict on states and as a consequence of it,
states couldn’t deliver the results justifying their maximum potential.
oInitially focused on strengthening on. small sector and agriculture
o With due time developing industrialization and infrastructure was given more
consideration to pace with the global level.

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CONCLUSION

All these shortcomings show that

THREE YEAR PLANS

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 OVERVIEW OF THE PROPOSED THREE YEAR PLANS
ACTION AGENDA (2017-2018 TO 2019-2020)
o National Institute for Transforming India (NITI Aayog) came up with the three year plans.
o NITI Aayog also proposed a 15 year long vision & 7 year strategy along with the three year action
agenda.
o The high paced growth and liberalization of economy achieved by India over the years.
o Has vision of achieving 8+ GDP growth rate.
o Aims to eradicate poverty and to increase the living standard in the country.
o Acknowledges infrastructure development as one of the most crucial elements of economic
transformation.
o “Maximum Governance and Minimum Government”.
o “Competitive and Cooperative Federalism”.
o It laid focus on developing in the field of science and technology by:
 Enhancing digital connectivity.
 Increasing access to reliable source of energy.
 Promoting an environment for innovation & entrepreneurship. 22
Thank you
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