A research on 5 year plans in India...& its effect on Indian economy...5 year planning in a nutshell..

1. …in a Nutshell

2. What is a Five Year Plan?

3. Why to plan?
Some problems which necessitates for an immediate
plan are as follows:
 Poverty
 Low per capita income
 High rate of growth of population
 Low level of literacy
 Need for rapid industrialisation

4. Objectives of Planning
 To increase per capita income and GDP
 Higher level of employment
 Growth with social justice
 Increasing industrial output
 Modernisation
 Self-reliance

5. Stages in Planning
 Formulation
 Adoption
 Approval
 Execution
 Supervision

6. Quick Glance…
 First Five Year Plan started in
1951, by our first Prime Minister
Pandit Jawaharlal Nehru
 The ongoing Five Year Plan is
the Twelfth Five Year Plan

7. First Five Year Plan (1951-1956)
 Led by Pandit Jawaharlal Nehru, on 8th December, 1951
 Plan addressed mainly the agricultural sector,
including investments in dams and irrigation
 The total planned budget was Rs. 2069 crores
 The NDP went up by 15%
 Many irrigation projects were initiated during this
period

8. Second Five Year Plan (1956-1961)
 Focussed on heavy industries and the Public Sector
 Attempted to determine the optimal allocation of
investment between productive sectors in order to
maximize long-run economic growth
 Total amount allocated was Rs. 4600 crores

9. Third Five Year Plan (1961-1966)
 The Third plan stressed on agriculture and
improvement in the production of wheat
 But the brief Sino-Indian war of 1962 exposed
weaknesses in the economy and shifted the focus
towards the defense industry
 Many cement and fertiliser plants were also built
 Punjab began producing an abundance of wheat
 Many primary schools started in rural areas

10. A Sudden Hindrance (1966-1969)
 In 1965-1966, India fought a [Indo-Pak] war with
Pakistan
 Due to this war, there was a severe drought in 1965, in
the sense that there was a great instabilisation and the
nation was facing difficulties
 The war led to inflation and the priority was shifted to
price stabilisation
 The construction of dams continued

11. Fourth Five Year Plan (1969-1974)
 Prime Minister – Indira Gandhi
 Government nationalised 14 major Indian banks and
the Green Revolution in India advanced agriculture
 Main emphasis was on growth rate of agriculture to
enable other sectors to move forward
 First two year of the plan saw record production
 The last three years did not measure up due to poor
monsoon
 Influx of Bangladeshi refugees before and after 1971
Indo-Pak war was an important issue

12. Fifth Five Year Plan (1974-1979)
 Launched by D.D. Dhar
 Two main objectives-
Garibi Hatao
Self-reliance
 Key instruments-
Promotion of high rate of growth
Better distribution of income
Signigicant growth in the domestic rate of savings
 Rolling Plan (1978-1980)

13. Sixth Five Year Plan (1980-1985)
The main focus was an increase in:-
 National income
 Modernisation of technology
 Ensuring continuous decrease in poverty and
unemployment
 Population control through family planning, etc.

14. Seventh Five Year Plan (1985-1990)
 The focus was rapid growth in food-grains production,
increased employment opportunities and productivity
within the framework of basic tenants of planning
 The plan was very successful, the economy recorded
6% growth rate against the targetted 5%

15. Eighth Five Year Plan (1992-1997)
 Was postponed by two years
 Drastic policy measures led to an annual coverage
growth of 5.6%
 Some of the main economic outcomes were rapid
economic growth, high growth of agriculture and
allied sector, and manufacturing sector, growth in
exports and imports, improvement in trade and (then)
current account deficit

16. Ninth Five Year Plan (1997-2002)
 Developed in the context of four important dimensions.:-
Quality of life
Generation of productive employment
Regional balance
Self-reliance
 Other aims…
To ensure food and nutritional security
To check the growing population increase
To stabilise prices in order to accelerate the growth rate of economy
To create a liberal market for increase in private investments, etc

17. Tenth Five Year Plan (2002-2007)
Developed to achieve the following:-
 Attain 8% GDP growth per year (achieved 7.7%)
 Reduction of Poverty Ratio by 5% by 2007
 Providing gaingul and higher quality employment at
least to the addition to the labour force
 Reduction in gender gaps in literacy and wage rates by
at least 50% by 2007

18. Eleventh Five Year Plan (2007-2012)
Focussed on achieving the following aims:-
Poverty Reduction
Emphasis on Social Sector
Reduction of gender inequality
Environmental sustainabillity
Increase growth rate in agriculture, industry and services
Clean drinking water

19. Statistics…
Plan Target Actual
First Plan 2.9% 3.6%
Second Plan 4.5% 4.3%
Third Plan 5.6% 2.8%
Fourth Plan 5.7% 3.3%
Fifth Plan 4.4% 4.8%
Sixth Plan 5.2% 6.0%
Seventh Plan 5.0% 6.0%
Eighth Plan 5.6% 6.8%
Ninth Plan 6.5% 5.4%
Tenth Plan 8.0% 7.8%
Eleventh Plan 9.0% 8.0%

20. Twelfth Five Year Plan (2012-2017)
 The Twelfth Five Year Plan, noticing the
deterioting global situation, has set a target of
average GDP increase of 8%
 The plan will try to achieve improvements in all
the previous topics, along with a special care for
elimination of poverty

21. Factors for effectiveness of a Five Year Plan
Collection of statistical data
Economic organisation
Government setup
Public cooperation
Conclusions

22. Conclusions
We learnt that:-
 Economic planning helps in mobilizing and allocating
the resources in desired manner
 Objective of economic planning is to reduce
inequality, economic growth, balanced regional
growth, modernisation
 Each Five Year Plan aims at achieving certain targets.
Give year plan constitute the steps toward the
fulfillment of objectives of economic planning

23. Questions?