The Planning Commission was set up in March 1950 to promote a rapid rise in the standard of living of the people by utilizing the resources of the country, increasing production and offering employment opportunities to all.
The Planning Commission has the responsibility for formulating plans as to how the resources can be used in the most effective way.
Functions of the planning commission
Assessment of resources of the country
Formulation of Five-Year Plans for effective use of these resources
Determination of priorities, and allocation of resources for the Plans
Determination of requisite machinery for successful implementation of the Plans
Periodical appraisal of the progress of the Plan
To formulate plans for the most effective and balanced utilization of country's resources.
To indicate the factors which are hampering economic development.
1st five year plan(1951-1956) It was presented by the then Prime Minister Jawaharlal Nehru in the Indian parliament on 8th December,1951 Objectives Community and agriculture development Energy and irrigation Communications and transport Industry Land rehabilitation Social services Target GDP growth of 2.1 per year.
Five Indian Institutes of Technology(IITs) were started as major technical institutions. University Grant Commission was set up to take care of funding and take measures to strengthen the higher education in the country.
The Atomic Energy Commission was formed in 1957 with Homi J. Bhabha as the first chairman.
In 1957 a talent search and scholarship program was begun to find talented young students to train for work in nuclear power.
Some shortcomiNgs Mahalanobis Model Unfavorable monsoon in 1957-58 and 1959-60 impacted agricultural production. The Suez crisis blocked International Trading increasing commodity prices.
3rd five year plan(1961-1966) Objectives Increased emphasis on agriculture Power sector given importance Increase in the National Income @ 5% per year. Promotion of economic development in backward areas. Prevent monopolies.
Development of social services and education in India.
Improved the quality of life of Indian citizens, and played a crucial role in the growth and development of the country.
Plan Holiday (1966-69) Three Annual Plans (1966-69) Plan holiday for 3years The prevailing crisis in agriculture and serious food shortage necessitated the emphasis on agriculture during the Annual Plans. During these plans a whole new agricultural strategy involving wide-spread distribution of High-Yielding Varieties of seeds, the extensive use of fertilizers, exploitation of irrigation potential and soil conservation was put into action to tide-over the crisis in agricultural production. During the Annual Plans, the economy basically absorbed the shocks given during the Third Plan, making way for a planned growth.
Situation India had to reform and restructure its expenditure agenda, following the attack on India in the year 1962 and for the second time in the year 1965 Due to recession, famine and drought, India did not pay much heed to long term goals. It started taking measures to overcome the crisis. The need for foreign reserves was felt
Objectives Economic self-reliance Reduction of foreign-aid Intensive irrigated agriculture Promotion of industrial development The target of over all growth rate was 5.7% per annum
Achievements The achievements of the fourth plan were below targets Agriculture growth was just at 2.8% Green revolution did not perform as expected Industry too grew at 3.9% The Indira Gandhi government nationalized 14 major Indian banks Actual growth rate achieved was 3.4%
Situation The world economy was in a troublesome state when the fifth five year plan was chalked out Prices in the energy and food sector skyrocketed and as a consequence inflation became inevitable
Objectives The fifth plan proposed to achieve two main objectives viz, 'removal of poverty' (GaribiHatao) and 'attainment of self reliance', through promotion of high rate of growth, better distribution of income and a very significant growth in the domestic rate of savings Target of growth rate in GDP was 5.5% per annum
Objectives to reduce social, regional, and economic disparities for developmental planning to enhance agricultural productivity to initiate land reforms to check rural and urban unemployment to emphasize on household industries to encourage self-employment through a well integrated local planning to encourage import substitution in areas like industrial machinery, chemicals, paper, iron and steel and non-ferrous metals to capture the markets with locational advantages to initiate appropriate use of fiscal, credit and production support policies in the cottage industry sector to develop labor intensive technological improvements
Achievements The greatest achievement was an unexpected rise of foreign exchange reserves. In 1974-75, Indian exports crossed 18%. For-ex reserves reached up to Rs. 4,000 crs by March 1978-79 Food-grain production was above 118 million tons due to the improvement of infrastructural facilities In the 4th year of this plan, the growth rate was as high as 8.6 % The actual average annual growth rate was 3.9% per annum
Rolling Plan (1978 - 80) The plan was terminated in 1978 (instead of 1979) when Janta Govt. came to power There were 2 Sixth Plans. One by Janta Govt. (for 1978-83) which was in operation for 2 years only and the other by the Congress Govt. when it returned to power in 1980.
Situation At the onset of the Sixth Five Year Plan India, Rajiv Gandhi, the then prime minister prioritized speedy industrial development, with special emphasis on the information technology sector From the Fifth Five Year Plan, the nation had been able to achieve self sufficiency in food. Moreover, the industrial sector was also diversified and science and technology also made a significant advance One of the major hindrances in the way of further development in this period was the boom in the Indian population
Objectives Target growth of GDP was 5.3% per annum Increasing industrialization to increase the growth rate of the economy to concentrate on the promotion of efficient use of resources to control poverty and unemployment to initiate modernization for achieving economic and technological self-reliance to introduce Minimum Needs Program for the poor and needy with an emphasis to reduce the discrepancies in income and wealth accumulation to initiate Family Planning Programs in order to check the growing population trends to protect and improve ecological and environmental assets to promote the education at all levels
Achievements Achieved Average annual growth rate was 5.7% per annum The transport and communication system improved under this Plan The Indian national highway system was introduced for the first time and many roads were widened to accommodate the increasing traffic Tourism also expanded The sixth plan also marked the beginning of economic liberalization resulting in growth in standard of living of people Family planning also was expanded in order to prevent overpopulation
ObJECTIVES To prioritize the specific sectors which requires immediate investment To generate full scale employment To promote social welfare measures like improved healthcare, sanitation, communication and provision for extensive education facilities at all levels To check the increasing population growth by creating mass awareness programs To encourage growth and diversification of agriculture To achieve self-reliance in food and produce surpluses for increase in exports To strengthen the infrastructural facilities like energy, power, irrigation
ObJECTIVES To increase the technical capacities for developed science and technology To modernize Indian economy and build up a competitive efficiency in order to participate in the global developments To place greater emphasis on role of private initiative in the development of the industrial sector To involve the public sector to focus on only strategic, high-tech and essential infrastructural developments To create opportunities for the general people to get involved in various developmental activities by building and strengthening mass institutions Attain a GDP of 6.2%
ACHIEVEMENTS GDP growth of 6.7% was achieved Modernization of industries Liberalization , privatization & globalization Rise in Employment Level Poverty, which still afflicted 55% of the population in 1973-74, fell to 39% The literacy rate rose from 52% to 65%
OBJECTIVES To prioritize agricultural sector and emphasize on the rural development To generate adequate employment opportunities and promote poverty reduction To stabilize the prices in order to accelerate the growth rate of the economy To ensure food and nutritional security
OBJECTIVES To provide for the basic infrastructural facilities like education for all, safe drinking water, primary health care, transport, energy To check the growing population increase To encourage social issues like women empowerment, conservation of certain benefits for the Special Groups of the society To create a liberal market for increase in private investments To attain GDP growth of 6.5%
ACHIEVEMENTS GDP annual growth achieved 5.35 %
Real investment and the savingsrates continued to rise modestly.
Substantial liberalisation of central industrial licensing and controls.
Reduction in tax rates, the far-reaching liberalization in the trade sector.
Reduction in tariff rates changed the business environment and scope for private investment.
Quantitative restrictions were removed at the end of the 9th Plan period.
10th Five year Plan(2002-2007) Objectives Reduction of poverty ratio by 5 percentage points by 2007; Providing high-quality employment All children in India in school by 2003; all children to complete 5 years of schooling by 2007; Reduction in gender gaps in literacy rates 2007; Increase in Literacy Rates to 75 per cent within the Tenth Plan period (2002 to 2007);
10th Five year Plan(2002-2007) Objectives Continued Increase in forest and tree cover to 25 per cent by 2007 and 33 per cent by 2012; All villages to have sustained access to potable drinking water within the Plan period; Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012; Target GDP is 8%
11th Five year Plan(2002-2007) Objectives Income & Poverty Accelerate GDP growth 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 to 4% per year to ensure a broader spread of benefits Create 70 million new work opportunities. Reduce educated unemployment to below 5%.
Education Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12 Develop minimum standards of educational attainment in elementary school, and by regular testing monitor effectiveness of education to ensure quality Increase literacy rate for persons of age 7 years or above to 85% Lower gender gap in literacy to 10 percentage points
Health Reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000 live births Provide clean drinking water for all by 2009 and ensure that there are no slip-backs Reduce malnutrition among children of age group 0-3 to half its present level Reduce anaemia among women and girls by 50% by the end of the plan Women and Children Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17 Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are women and girl children Ensure that all children enjoy a safe childhood, without any compulsion to work
Infrastructure Ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power. Ensure all-weather road connection to all habitation with population 1000 and above (500 in hilly and tribal areas) by 2009, and ensure coverage of all significant habitation by 2015 Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012 Environment Increase forest and tree cover by 5 percentage points. Attain WHO standards of air quality in all major cities by 2011-12. Treat all urban waste water by 2011-12 to clean river waters.
India : Vision 2020 Agriculture and food processing -- with a target of doubling the present production of food and agricultural products by 2020. Agro food processing industry would lead to the prosperity of rural people, food security and speed up the economic growth; Infrastructure with reliable and quality electric power including solar farming for all parts of the country, providing urban amenities in rural areas and interlinking of rivers; Education and Healthcare: To provide social security and eradication of illiteracy and health for all;
Information and Communication Technology: This is one of our core competencies and wealth generator. ICT can be used for tele-education, tele-medicine and e-governance to promote education in remote areas, healthcare and also transparency in the administration; and Critical technologies and strategic industries would witness the growth in nuclear technology, space technology and defence technology