Planning commision of india

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Five year plans of INDIAN government

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Planning commision of india

  1. 1. FIVE YEAR PLANS PLANNING COMMISSIONPLANNING COMMISSION IN INDIAIN INDIA :- PALLAV TYAGI
  2. 2. WHAT IS A PLAN ?  A PLAN SPELLS OUT HOW THE RESOURCES OF A NATION SHOULD BE PUT TO USE.  SOME GENERAL GOALS AS WELL AS SOME SPECIFIC OBJECTIVES  TO BE ACHIEVED WITHIN A SPECIFIED PERIOD OF TIME  IN INDIA PLANS ARE OF FIVE YEARS DURATION  OUR PLAN DOCUMENTS SPECIFY THE OBJECTIVES TO BE ATTAINED IN THE FIVE YEARS OF A PLAN  PLAN DOCUMENTS ALSO SPECIFY WHAT IS TO BE ACHIEVED OVER A PERIOD OF TWENTY YEARS. THIS LONG-TERM PLAN IS CALLED ‘PERSPECTIVE PLAN’.  THE FIVE YEAR PLANS ARE SUPPOSED TO PROVIDE THE BASIS FOR THE PERSPECTIVE PLAN.
  3. 3. PLANNING IN INDIA PLANNING COMMISSION  ESTABLISHED IN MARCH 1950  A STATUTORY BODY WITH THE PRIME MINISTER OF INDIA AS ITS CHAIRMAN  SET UP TO FORMULATE BASIC ECONOMIC POLICIES, DRAFT PLANS AND WATCH ITS PROGRESS AND IMPLEMENTATION.  PT. JAWAHARLAL NEHRU WAS THE FIRST CHAIRMAN OF THE PLANNING COMMISSION
  4. 4. India's first Prime Minister, Jawaharlal Nehru, establishes a five-year plan for agricultural reform, committing India to a socialist path to development.
  5. 5. PLANNING IN INDIA  NATIONAL PLANNING COUNCIL  AN ADVISORY BODY ATTACHED TO THE PLANNING COMMISSION  ESTABLISHED IN 1965.  IT INCLUDES EXPERTS REPRESENTING A CROSS- SECTION OF THE INDIAN ECONOMY.  NATIONAL DEVELOPMENT COUNCIL  ESTABLISHED IN 1951  CMs OF THE STATES, TOGETHER WITH THE MEMBERS OF THE PLANNING COMMISSION, CONSTITUTE THE NATIONAL DEVELOPMENT COUNCIL.  THE PRIME MINISTER OF INDIA PRESIDES OVER THE COUNCIL.
  6. 6. FIVE YEAR PLANS THE DEVELOPMENT PLANS ARE DRAWN BY THE PLANNING COMMISSION TO ESTABLISH INDIA'S ECONOMY ON A SOCIALISTIC PATTERN IN SUCCESSIVE PHASES OF FIVE YEAR PERIODS- CALLED THE FIVE YEAR PLANS. IT CONSISTS OF:  (I) PLANNING COMMISSION OF INDIA  (II) NATIONAL PLANNING COUNCIL  (III) NATIONAL DEVELOPMENT COUNCIL AND STATE PLANNING COMMISSIONS
  7. 7. FIVE YEAR PLANS THE GOALS OF THE FIVE YEAR PLANS ARE:  GROWTH  MODERNISATION  SELF-RELIANCE  AND EQUITY.
  8. 8. FIRST FIVE YEAR PLAN (1951-56) IN JULY 1951, THE PLANNING COMMISSION ISSUED THE DRAFT OUTLINE OF THE FIRST FIVE YEAR PLAN FOR THE PERIOD APRIL 1951 TO MARCH 1956. IT WAS PRESENTED TO THE PARLIAMENT IN DECEMBER 1952. IN THE FIRST PLAN, AGRICULTURE RECEIVED THE MAIN THRUST, FOR SUSTAINING OF GROWTH AND DEVELOPMENT OF INDUSTRIES WHICH WOULD NOT BE POSSIBLE WITHOUT A SIGNIFICANT RISE IN THE YIELD OF RAW MATERIALS AND FOOD.
  9. 9. FIRST FIVE YEAR PLAN (1951-56) OBJECTIVES:  I) TO INCREASE FOOD PRODUCTION.  II) TO FULLY UTILISE AVAILABLE RAW MATERIALS.  III) TO CHECK INFLATIONARY PRESSURE. OUTLAY: THE TOTAL PROPOSED OUTLAY WAS RS. 3,870 CRORE. IT WAS MORE THAN A SUCCESS, BECAUSE OF GOOD HARVESTS IN THE LAST TWO YEARS.
  10. 10. SECOND FIVE YEAR PLAN (1956-61)  ALSO CALLED MAHALANOBIS PLAN AFTER ITS CHIEF ARCHITECT.  THE MAIN OBJECTIVE WAS TO LAUNCH INDUSTRIALISATION AND STRENGTHEN THE INDUSTRIAL BASE OF THE ECONOMY.  IT WAS IN THIS LIGHT THAT THE 1948 INDUSTRIAL POLICY RESOLUTION WAS REVISED AND A NEW RESOLUTION OF 1956 WAS ADOPTED.  THE SECOND PLAN STARTED WITH AN EMPHASIS ON THE EXPANSION OF THE PUBLIC SECTOR AND AIMED AT THE ESTABLISHMENT OF A SOCIALISTIC PATTERN OF SOCIETY.
  11. 11. SECOND FIVE YEAR PLAN (1956-61)  OBJECTIVES:  I) A SIZEABLE INCREASE IN NATIONAL INCOME SO AS TO RAISE THE LEVEL OF LIVING.  II) RAPID INDUSTRIALISATION OF THE COUNTRY WITH PARTICULAR EMPHASIS ON THE DEVELOPMENT OF BASIC AND KEY INDUSTRIES.  OUTLAY: THE SECOND PLAN PROPOSED A TOTAL PUBLIC SECTOR OUTLAY OF RS. 4,800 CRORES THOUGH ACTUAL OUTLAY WAS ONLY RS. 4,672 CRORE.  ADVOCATED HUGE IMPORTS WHICH LED TO EMPTYING OF FUNDS LEADING TO FOREIGN LOANS. IT SHIFTED BASIC EMPHASIS FROM AGRICULTURE TO INDUSTRY FAR TOO SOON. DURING THIS PLAN, PRICE LEVEL INCREASED BY 30%, AGAINST A DECLINE OF 13% DURING THE FIRST PLAN.
  12. 12. THIRD FIVE YEAR PLAN (1961-66) IN THE THIRD PLAN, THE EMPHASIS WAS ON LONG-TERM DEVELOPMENT. THE THIRD PLAN REPORT STATED THAT DURING THE FIVE-YEAR PERIOD CONCERNED, THE INDIAN ECONOMY "MUST NOT ONLY EXPAND RAPIDLY BUT, AT THE SAME TIME, BECOME SELF-RELIANT AND SELF-GENERATING."
  13. 13. THIRD FIVE YEAR PLAN (1961-66)  OBJECTIVES:  I) AN INCREASE IN NATIONAL INCOME OF MORE THAN 5 PER CENT ANNUALLY. THE INVESTMENT PATTERN LAID DOWN MUST BE CAPABLE OF SUSTAINING THIS GROWTH RATE IN THE SUBSEQUENT YEARS.  II) AN INCREASE IN THE AGRICULTURAL PRODUCE AND TO ACHIEVE SELF SUFFICIENCY BY INCREASING FOOD GRAIN PRODUCTION.  III) GREATER EQUALITY OF OPPORTUNITIES, MORE EVEN DISTRIBUTION OF ECONOMIC POWER AND REDUCING WEALTH AND INCOME DISPARITIES.  ALSO, IT WAS REALIZED FROM THE EXPERIENCE OF FIRST TWO PLANS THAT AGRICULTURE SHOULD BE GIVEN THE TOP PRIORITY TO SUFFICE THE REQUIREMENT OF EXPORT AND INDUSTRY.  COMPLETE FAILURE DUE TO UNFORESEEN MISFORTUNES, VIZ. CHINESE AGGRESSION (1962), INDO-PAK WAR (1965), SEVEREST DROUGHT IN 100 YEARS (1965-66).
  14. 14. 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.
  15. 15. FOURTH FIVE YEAR PLAN (1969- 74)  AFTER THE ‘PLAN HOLIDAY', THE FOURTH PLAN WAS BEGUN IN 1969.  OBJECTIVES:  I) TO ACHIEVE STABILITY AND PROGRESS TOWARDS SELF-RELIANCE.  II) TO ACHIEVE AN OVERALL RATE OF GROWTH OF 5.7 PER CENT ANNUALLY.  III) TO RAISE EXPORTS AT THE RATE OF 7 PER CENT ANNUALLY.  OUTLAY: THE TOTAL PROPOSED OUTLAY WAS RS. 24,880 CRORE, WHICH INCLUDED RS. 15,900 CRORES AS PUBLIC SECTOR OUTLAY AND RS. 8,980 CRORE AS PRIVATE SECTOR OUTLAY.
  16. 16. FOURTH FIVE YEAR PLAN (1969-74) MAIN EMPHASIS ON AGRICULTURE'S GROWTH RATE SO THAT A CHAIN REACTION CAN START. FARED WELL IN THE FIRST TWO YEARS WITH RECORD PRODUCTION, LAST THREE YEARS FAILURE BECAUSE OF POOR MONSOON. HAD TO TACKLE THE INFLUX OF BANGLADESHI REFUGEES BEFORE AND AFTER 1971 INDO-PAK WAR.
  17. 17. FIFTH FIVE YEAR PLAN (1974-79)  THE PLAN WAS FORMULATED AGAINST THE BACKGROUND OF SEVERE INFLATIONARY PRESSURE.  THE FIFTH PLAN PREPARED AND LAUNCHED BY D.D. DHAR PROPOSED TO ACHIEVE TWO MAIN OBJECTIVES VIZ, 'REMOVAL OF POVERTY' (GARIBI HATAO) 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.  OBJECTIVES: IN ADDITION TO REMOVAL OF POVERTY AND ATTAINMENT OF SELF-RELIANCE, THE FIFTH PLAN HAD THE FOLLOWING MAJOR OBJECTIVES.  I) 5.5 PER CENT OVERALL RATE OF GROWTH IN GROSS DOMESTIC OBJECTIVES.
  18. 18. FIFTH FIVE YEAR PLAN (1974-79)  II) EXPANSION OF PRODUCTIVE EMPLOYMENT AND FULLER UTILISATION OF EXISTING SKILLS AND EQUIPMENT.  III) A NATIONAL PROGRAMME FOR MINIMUM NEEDS AND EXTENDED PROGRAMMES OF SOCIAL WELFARE.  OUTLAY: A TOTAL OUTLAY OF RS. 53,410 CRORE WAS PROPOSED FOR THE FIFTH PLAN.  THE PLAN WAS TERMINATED IN 1978 (INSTEAD OF 1979) WHEN JANTA GOVT.CAME TO POWER.
  19. 19. SIXTH FIVE YEAR PLAN (1980-85) THE DRAFT OF THE SIXTH FIVE YEAR PLAN (1978-1983) WAS PRESENTED IN 1978. HOWEVER, THE PLAN WAS TERMINATED WITH THE CHANGE OF GOVERNMENT IN JANUARY 1980. THE NEW SIXTH FIVE YEAR PLAN WAS IMPLEMENTED IN APRIL 1980. OBJECTIVES:  I) TO ELIMINATE UNEMPLOYMENT AND UNDEREMPLOYMENT.  II) TO RAISE THE STANDARD OF LIVING OF THE POOREST OF MASSES.  III) TO REDUCE DISPARITIES IN INCOME AND WEALTH. OUTLAY: THE PROPOSED OUTLAY FOR THE SIXTH PLAN TOTALLED RS. 1,58,710 CRORE.
  20. 20. SEVENTH FIVE YEAR PLAN (1985-90)  THE DRAFT OF THE SEVENTH PLAN WAS APPROVED ON NOVEMBER 9, 1985 BY THE NATIONAL DEVELOPMENT COUNCIL. THE PLAN WAS PART OF THE LONG-TERM PLAN FOR THE PERIOD OF 15 YEARS.  OBJECTIVES:  I) DECENTRALISATION OF PLANNING AND FULL PUBLIC PARTICIPATION IN DEVELOPMENT.  II) THE MAXIMUM POSSIBLE GENERATION OF PRODUCTIVE EMPLOYMENT.  III) REMOVAL OF POVERTY AND REDUCTION IN INCOME DISPARITIES. IT WAS A GREAT SUCCESS, THE ECONOMY RECORDED 6% GROWTH RATE AGAINST THE TARGETED 5%.
  21. 21. EIGHTH FIVE YEAR PLAN (1992-97)  THE EIGHTH PLAN WAS POSTPONED BY TWO YEARS BECAUSE OF POLITICAL UPHEAVALS AT THE CENTRE AND IT WAS LAUNCHED AFTER A WORSENING BALANCE OF PAYMENT POSITION AND INFLATION DURING 1990-91.  THE EIGHTH PLAN PROPOSED A GROWTH RATE OF 5.6 PER CENT PER ANNUM ON AN AVERAGE DURING THE PLAN PERIOD.  THE EIGHTH PLAN FOCUSED ON CLEAR PRIORITISATION OF SECTORS/PROJECTS FOR INVESTMENT IN ORDER TO FACILITATE IMPLEMENTATION OF THE POLICY INITIATIVES TAKEN IN THE AREAS OF FISCAL, TRADE AND INDUSTRIAL SECTORS AND HUMAN DEVELOPMENT.
  22. 22. EIGHTH FIVE YEAR PLAN (1992-97)  OBJECTIVES:  I) GENERATION OF ADEQUATE EMPLOYMENT TO ACHIEVE NEAR FULL EMPLOYMENT LEVEL BY THE TURN OF THE CENTURY.  II) CONTAINMENT OF POPULATION GROWTH THROUGH PEOPLE'S ACTIVE CO-OPERATION AND AN EFFECTIVE SCHEME OF INCENTIVES AND DISINCENTIVES.  III) UNIVERSALISATION OF ELEMENTARY EDUCATION AND COMPLETE ERADICATION OF ILLITERACY AMONG THE PEOPLE IN THE AGE GROUP OF 15 TO 35 YEARS.
  23. 23. EIGHTH FIVE YEAR PLAN (1992-97) SOME OF THE MAIN ECONOMIC PERFORMANCES DURING EIGHTH PLAN PERIOD WERE RAPID ECONOMIC GROWTH, HIGH GROWTH OF AGRICULTURE AND ALLIED SECTOR, AND MANUFACTURING SECTOR, GROWTH IN EXPORTS AND IMPORTS, IMPROVEMENT IN TRADE AND CURRENT ACCOUNT DEFICIT.
  24. 24. NINTH FIVE-YEAR PLAN (1997-2002) IT BEGAN ON APRIL 1, 1997. THE NINTH PLAN WAS THE FIRST CONCRETE ATTEMPT TO TRANSLATE THE PROGRAMME OF ECONOMIC REFORMS AND THE NEW ECONOMIC POLICY WITHIN THE FRAMEWORK OF AN INDICATIVE PLAN. THE APPROACH PAPER TO THE NINTH PLAN (1997-2002) WAS APPROVED BY THE N.D.C. ON 16TH JANUARY, 1997.
  25. 25. NINTH FIVE-YEAR PLAN (1997-2002)  OBJECTIVES:  I.) PRIORITY TO AGRICULTURE AND RURAL DEVELOPMENT  II.) ACCELERATING GROWTH RATE OF ECONOMY  III.) FOOD AND NUTRITIONAL SECURITY FOR ALL  IV.) CONTAINING GROWTH RATE OF POPULATION  V.) EMPOWERMENT OF WOMEN AND SOCIALLY DISADVANTAGED GROUPS SUCH AS SC/ST, BACKWARD CLASSES AND MINORITIES.  VI.) PROMOTING AND DEVELOPING PARTICIPATORY INSTITUTIONS LIKE "PANCHAYATI RAJ" INSTITUTIONS, CO-OPERATIVES AND SELF-HELP GROUPS.
  26. 26. TENTH FIVE YEAR PLAN (2002-07)  ON DECEMBER 21, 2002, THE TENTH FIVE YEAR PLAN WAS APPROVED BY THE NDC. THE PLAN FURTHER DEVELOPED THE NDC MANDATED OBJECTIVES, OF DOUBLING PER CAPITA INCOME IN 10 YEARS, AND ACHIEVING A GROWTH RATE OF 8% OF GDP PER ANNUM. THE PLAN HAD A NUMBER OF NEW FEATURES, SUCH AS, FOR THE FIRST TIME  (A) IT RECOGNISED THE RAPID GROWTH OF LABOUR FORCE OVER THE NEXT DECADE  (B) ADDRESSED THE ISSUE OF POVERTY AND THE UNACCEPTABLY LOW LEVELS OF SOCIAL INDICATORS
  27. 27. TENTH FIVE YEAR PLAN (2002-07)  (C) ADOPTED A "DIFFERENTIAL DEVELOPMENT STRATEGY" TO EQUATE NATIONAL TARGETS INTO BALANCED REGIONAL DEVELOPMENT AS THERE IS VAST DIFFERENCE IN THE POTENTIALS AND CONSTRAINTS OF EACH STATE  (D) RECOGNISED THAT THE GOVERNANCE IS PERHAPS ONE OF THE MOST IMPORTANT FACTORS FOR ENSURING REALISATION OF THE PLAN  (E) IDENTIFIED MEASURES TO IMPROVE EFFICIENCY, UNLEASH ENTREPRENEURIAL ENERGY, AND PROMOTE RAPID AND SUSTAINABLE GROWTH  (F) PROPOSED MAJOR REFORMS FOR AGRICULTURAL SECTOR MAKING 'AGRICULTURE' THE CORE ELEMENT OF THE PLAN.
  28. 28. TENTH FIVE YEAR PLAN (2002-07) SINCE ECONOMIC GROWTH IS NOT THE ONLY OBJECTIVE, THE PLAN AIMS AT HARNESSING THE BENEFITS OF GROWTH TO IMPROVE THE QUALITY OF LIFE OF THE PEOPLE BY SETTING THE FOLLOWING KEY TARGETS:  1. ALL CHILDREN TO BE IN SCHOOL BY 2003 AND ALL CHILDREN TO COMPLETE FIVE YEARS OF SCHOOLING BY 2007  2. REDUCTION IN POVERTY RATIO FROM 26% TO 21%  3. GROWTH IN GAINFUL EMPLOYMENT TO, AT LEAST, KEEP PACE WITH ADDITION TO THE LABOUR FORCE  4. DECADAL POPULATION GROWTH TO REDUCE FROM 21.3% IN 1991-2001 TO 16.2% BY 2001-11
  29. 29. TENTH FIVE YEAR PLAN (2002-07) 5. REDUCING GENDER GAPS IN LITERACY AND WAGE RATES BY 50% 6. LITERACY RATE TO INCREASE FROM 65% IN 1999- 2000 TO 75% IN 2001 7. INFANT MORTALITY RATE (IMR) TO BE REDUCED FROM 72 IN 1999-2000, TO 45 IN 2007 8. .MATERNAL MORTALITY RATE (MMR) TO BE REDUCED FROM 4 PER 1000 IN 1999-2000 TO 2 PER 1000 IN 2007 9. PROVIDING PORTABLE DRINKING WATER IN ALL VILLAGES 10. CLEANING OF MAJOR POLLUTED RIVER STRETCHES 11. INCREASE IN FOREST/TREE COVER FROM 19% IN 1999-2000 TO 25% IN 2007
  30. 30. ELEVENTH PLAN (2007-2012)  THE UNITED PROGRESSIVE ALLIANCE GOVERNMENT ISSUED A PAPER IN THE ELEVENTH PLAN TITLED "TOWARDS FASTER AND MORE INCLUSIVE GROWTH." ACCORDING TO THE APPROACH PAPER, THE MONITORABLE TARGETS OF FIVE-YEAR PLAN ARE:  1. GDP GROWTH RATE TO BE INCREASED TO 10% BY THE END OF THE PLAN;  2. FARM SECTOR GROWTH TO BE INCREASED TO 4%;  3. CREATION OF SEVEN CRORE JOB OPPORTUNITIES;  4. REDUCE EDUCATED UNEMPLOYED YOUTH TO BELOW 5 PERCENT
  31. 31. ELEVENTH PLAN (2007-2012)  5. INFANT MORTALITY RATES TO BE REDUCED TO 28 PER 1000 BIRTHS;  6. MATERNAL DEATH RATES TO BE REDUCED TO 1 PER 1000 BIRTHS;  7. CLEAN DRINKING WATER TO ALL BY 2009;  8. IMPROVE SEX RATIO TO 935 BY 2011-12 AND TO 950 BY 2016-17;  9. ENSURE ELECTRICITY CONNECTION TO ALL VILLAGES AND BROADBAND OVER POWER LINES (BPL) HOUSEHOLDS BY 2009
  32. 32. ELEVENTH PLAN (2007-2012)  10. ROADS TO ALL VILLAGES THAT HAVE A POPULATION OF 1000 AND ABOVE BY 2009;  11. INCREASE FOREST AND TREE COVER BY 5%;  12. ACHIEVE THE WORLD HEALTH ORGANIZATION STANDARD AIR QUALITY IN MAJOR CITIES BY 2011-12;  13. TREAT ALL URBAN WASTEWATER BY 2011-12 TO CLEAN RIVER WATERS;  14. INCREASE ENERGY EFFICIENCY BY 20 PERCENT BY 2016-17
  33. 33. SECTORAL GROWTH RATE Sectoral Growth Rate -5 0 5 10 Five Year Plans GrowthRate Agriculture Industry Services Agriculture 2.9 3.2 -1 2.6 3.4 5.5 3.4 3.9 2 2.3 Industry 5.9 6.4 6.8 3.7 6.3 6.2 7.5 8 4.6 9.2 Services 3.7 4.6 5 4 5.5 5.4 7.4 7.9 8.1 9.3 1 2 3 4 5 6 7 8 9 10
  34. 34. ACHIEVEMENTS OF PLANNING IN INDIA INCREASE IN NATIONAL AND PER CAPITA INCOME PROGRESS IN AGRICULTURE  Progress in the use of agricultural inputs  Increased Agricultural Production PROGRESS IN INDUSTRY
  35. 35. ACHIEVEMENTS OF PLANNING IN INDIA (Contd.) DEVELOPMENT OF ECONOMIC INFRASTRUCTURE DIVERSIFICATION OF EXPORTS AND IMPORT SUBSTITUTION DEVELOPMENT OF SCIENCE AND TECHNOLOGY DEVELOPMENT OF EDUCATIONAL SYSTEM
  36. 36. FUNDAMENTAL FAILURES OF PLANNING FAILURE TO ELIMINATE POVERTY FAILURE TO PROVIDE EMPLOYMENT FAILURE TO REDUCE INEQUALITIES OF INCOME AND WEALTH FAILURE TO CHECK THE GROWTH OF BLACK MONEY
  37. 37. FUNDAMENTAL FAILURES OF PLANNING (Contd.) FAILURE TO REDUCE CONCENTRATION OF ECONOMIC POWER FAILURE TO IMPLEMENT LAND REFORMS

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