INTRODUCTION Economic Planning is to make decision with respect to the use of resources. Economic Planning is a term used to describe the long term plans of government to co-ordinate and develop the economy. Economic planning in India was stared in 1950 is necessary for economic development and economic growth.
NEED FOR ECONOMIC PLANNINGMess Poverty And Low Per Capita IncomeHigh Rate of Growth of PopulationLow Level of LiteracyBackward TechnologySocial And Economic Problem Created By Partition Of Country
OBJECTIVES OF ECONOMIC PLANNING Economic Growth. Reduction Of Economic In Equalities. Balanced Regional Development. Modernization. Reduction Of Unemployment.
Members Of Planning Commission Of IndiaChairman - Dr. Manmohan Singh (Prime Minister)Deputy Chairman - Shri Montek Singh AhluwaliaMember Secretary - Shri Rajeev Ratna Shah
FIVE YEAR PLANSThe economy of India is based in part on planning through its five year plans which are developed, executed and monitored by planning commission .The tenth plan completed its terms in march 2007 and the eleventh plan is currently underway .1. First five year plan(1951-1956)2. Second five year plan (1956-1961)3. Third five year plan (1961-1966)4. Fourth five year plan (1969-1974)5. Fifth five year plan (1974-1979)6. Sixth five year plan (1980-1985)7. Seventh five year plan(1985-1990)8. Eighth five year plan(1992-1997)9. Ninth five year plan(1997-2002)10. Tenth five year plan (2002-2007)11. Eleventh five year plan (2007-2012)
First five year plan(1951-1956)- The first Indian Prime Minister, Jawaharlal Nehru presented the first five- year plan to the Parliament of India on 8 December 1951.• The plan addressed, mainly, the agrarian sector, including investments in dams and irrigation.• The most important feature of this phase was active role of state in all economic sectors. after independence, India was facing basic problems— deficiency of capital and low capacity to save.• At the end of the plan period in 1956, five Indian Institutes of Technology (IITs) were started as major technical institutions.
Second five year plan(1956-61) - The second five- year plan focused on industry, especially heavy industry.• Hydroelectric power projects and five steel mills at Bhilai, Durgapur, and Rourkela were established. Coal production was increased. More railway lines were added in the north east.• Atomic energy was also formed in second five year plan.• The total amount allocated under the second five year plan in India was Rs. 4,800 crore. This amount was allocated among various sectors:• Mining and industry• Community and agriculture development• Power and irrigation• Social services• Communications and transport
Third five year plan(1961-66) -The third plan stressed on agriculture and improving production of wheat, it is also shifted the focus towards the Defense industry.• Many primary schools were started in rural areas. Panchayat elections were started.• State electricity boards and state secondary education boards were formed.Fourth five year plan(1969-74) - At this time Indira Gandhi was the Prime Minister. The Indira Gandhi government nationalized 14 major Indian banks and the Green Revolution in India advanced agriculture.
Fifth five year plan(1974-79) - Stress was laid on employment, poverty, alleviation, and justice. The plan also focused on self-reliance in agricultural production and defense.• The Indian national highway system was introduced for the first time.Sixth five year plan(1980-85) - The sixth plan also marked the beginning of economic liberalization. This led to an increase in food prices and an increase in the cost of living.• Family planning was also expanded in order to prevent overpopulation.
Seventh five year plan(1985-90) -The Seventh Plan marked the comeback of the Congress Party to power.• The main objectives of the 7th five year plans were to establish growth in areas of increasing economic productivity, production of food grains, and generating employment opportunities.• The thrust areas of the 7th Five year plan have been enlisted below:• Social Justice• Using modern technology• Agricultural development• Full supply of food, clothing, and shelter• Increasing productivity of small and large scale farmers• Making India an Independent Economy
Eighth five year plan(1992-97) -Between 1990 and 1992, there were only Annual Plans.• It was the beginning of privatization and liberalization in India.• Modernization of industries was a major highlight of the Eighth Plan.• India became a member of the World Trade Organization on 1 January 1995.• The major objectives included, controlling population growth, poverty reduction, employment generation, strengthening the infrastructure, Institutional building, tourism management, Human Resource development, Involvement of Panchayat raj, Nagar Palikas, N.G.OS and Decentralization and peoples participation.
Ninth five year plan(1997-2002) -The main objectives of the Ninth Five Year Plan of India are:• to develop the rural & agricultural sector• to generate employment opportunities and promote poverty reduction.• to provide for the basic infrastructural facilities like education for all, safe drinking water, primary health care, transport, energy.Tenth five year plan(2002-07) -• Attain 8% GDP growth per year.• Reduction of poverty ratio by 5 percentage points by 2007. Providing gainful and high-quality employment at least to the addition to the labor force Reduction in gender gaps in literacy and wage rates by at least 50%.
11th Five Year Plan TargetIncome & Poverty Accelerate growth rate of GDP 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. Reduce educated unemployment to below 5%. Raise real wage rate of unskilled workers by 20 percent.
EDUCATIONReduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12.Increase literacy rate for persons of age 7 years or more to 85%.Lower gender gap in literacy to 10 percentage points.
WOMEN AND CHILDRENEnsure 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.
ENVIRONMENTIncrease 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.Increase energy efficiency by 20 percentage points by 2016-17.
CONCLUSIONEconomic Planning help in mobilizing and allocating the resources in desired manner. Objective of economic planning is to reduce inequality, economic growth, balanced regional growth, modernization.Each five year plan aims at achieving certain target.Five year plan constitute the steps toward the fulfillment of objectives of economic planning.