Plans


First Plan (1951-56)

⇒ Based on Harrod-Domar Model.

⇒ Community Development Program launched in 1952

⇒ Focus on agriculture, price stability, power and transport.

⇒ It was a successful plan primarily be-cause of good harvests in the last two years of the plan.


Second Plan (1956-61)

⇒ Also called Mahalanobis Plan.

⇒ Focus – rapid industrialization

⇒ Target Growth: 4.5% ; Actual Growth: 4.27%

⇒ Advocated huge imports through foreign loans.

⇒ Shifted emphasis from agriculture to industry.Third Plan (1961 – 66)

⇒ Target Growth: 5.6% ; Actual Growth: 2.4%

⇒ Agriculture was given to priority to support the exports and industry.

⇒ Aimed to make India a ‘self-reliant’ and ‘self-generating’ economy.

⇒ Complete failure in reaching the targets due to unforeseen events – Chinese aggression (1962), Indo-Pak war (1965), severe drought 1965-66.


Three Annual Plans (1966-69)
Plan holiday for 3 years.

⇒ The main reasons for plan holidays were the war,lack of resources, and increase in inflation.

⇒ Equal priority was given to agriculture, its allied activities, and industrial sector.

⇒ During the Annual Plans, the economy absorbed the shocks generated during the Third Plan.

⇒ It paved the path for the planned growth ahead.


Fourth Plan (1969-74)

⇒ Target growth rate was 5.6%, actual growth rate was 3.3%.

⇒ Main emphasis was on growth rate of agriculture to enable other sectors to move forward


Fifth Plan (1974-79)

⇒ The fifth plan was prepared and launched by D.D. Dhar.

⇒ Target growth rate was 4.4% and the actual growth rate was 5.0%.

⇒ Expansion of tourism.

⇒ It proposed to achieve two main objectives: ‘removal of poverty’(Garibi Hatao) and ‘attainment of self reliance’.

⇒ Promotion of high rate of growth, better distribution of income and significant growth in the domestic rate of savings were seen as key instruments.

⇒ The plan was terminated in 1978 (instead of 1979) when Janta Party Govt. rose to power.


Rolling Plan (1978-80)

⇒ There were two Sixth Plans. Janta Government put forward a plan for 1978-1983. However, the government lasted for only 2 years. Congress Govt. re-turned to power in 1980 and launched a different plan.


Sixth Plan (1980-85)

⇒ Target growth rate was 5.2% and the actual growth rate was 5.4%.

⇒ It was a great success and marked the beginning of economic liberalisation.

Focus – Increase in national income, modernization of technology, ensuring continuous decrease in poverty and unemployment, population control through family planning, etc.


Seventh Plan (1985-90)

⇒ Target growth rate was 5.0% and the actual growth rate was 6.01%.

⇒ Focus rapid growth in food-grains production, increased employment opportunities and productivity within the frame-work of basic tenants of planning.


Eighth Plan (1992-97)

⇒ It was postponed by two years because of political uncertainty at the Centre.

⇒ Modernization of industries was a major highlight.

⇒ Main economic outcomes were rapid economic growth, high growth of agriculture and allied sectors, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit.

⇒ Target growth rate: 5.6%; Average growth rate: 6.78%


Ninth Plan (1997-2002)

⇒ Target growth was 7.1% and the actual growth was 6.8%.

⇒ It was developed in the context of four important dimensions: Quality of life, generation of productive employment, regional balance and self-reliance.


Tenth Plan (2002-2007)

⇒ Target growth: 8.1% Growth achieved: 7.7%

20 point program was introduced.

  • It targetted a GDP growth of 8% per annum.
  • Reduction in gender gaps in literacy and wage rates by at least 50%
  • Providing gainful and high-quality employment at least to the addition to the labour force.
  • Reduction of poverty rate by 5%.


Eleventh Plan (2007 – 2012)

⇒ Accelerate GDP growth from 8% to 10%.

⇒ Reduce Total Fertility Rate to 2.1

⇒ Increase agriculture growth to 4%.

⇒ Emphasis on social sector and delivery of service therein.

⇒ Empowerment through education and skill development.


Twelfth Five Year Plan (2012-2017)

Major objective: Faster,Sustainable and More Inducive Growth.

⇒ Planning Commission in its meeting held on April 2011, the Prime Minister, Dr. Manmohan Singh, addressed the Planning Commission concerning the twelth Five Year Plan of India. The main points of the Twelfth Plan are:

Resource Allocation
Priorities in 12th plan

⇒ Health and Education received less than projected in Eleventh Plan. Allocations for these sectors will have to be increased in 12th plan.

⇒ Health, Education and Skill Develop-ment together in the Centre’s Plan will have to be increased by at least 1.2% point of GDP.

⇒ Infrastructure, including irrigation and watershed management and ur-ban infrastructure, will need additional 0.7 percentage point of GDP over the next 5 years.

⇒ Since Centre’s GBS will rise by only 1.3 percentage points over 5 years, all other sectors will have a slower growth in allocations.

⇒ Decrease the number of Centrally Sponsored Schemes (CSS) to a few ma-jor schemes. For the rest, create new flexi-fund which allow Ministries to experiment in other CSS areas.

⇒ PPP model must be encouraged, including in the social sector, i.e. health and education. Efforts on this front need to be intensified.

⇒ Distinction between plan and non-plan being reviewed by Rangarajan Committee.


Important Points

⇒ Planning Commission has been replaced by NITI Aayog.

Montek Singh Ahluwalia was the last Deputy Chairman of the Commission (resigned on 26 May 2014).

⇒ Five-Year Plans (FYPs) are centralized and integrated national economic programs.