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Planning in India


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Planning in India

  1. 1. By Mr. Amit Helegaonkar Mr. Harsh Bhadauria Mr. Rajesh Kolkondi Mr. Ramesh Khadtare Mr. Prafulla Kharote Mr. Satish Kadam
  2. 2. History – Planning Commission  Set up by a Resolution of the Govt. of India in March 1950.  Objective:  To promote a rapid rise in the standard of living of the people.  Responsibilities:  To make assessment of all resources of the country  Augmenting deficient resources, formulating plans for the most effective and balanced utilization of resources  Determining priorities  The first Five-year Plan was launched in 1951. Visionary Leadership: Subhas Bose arriving at Bombay's Victoria Terminus railway station to inaugurate the All India Industrial Planning Committee meeting. Forerunner of the Planning Commission of India, the All India Industrial Planning Committee was set up in 1938 by Bose as Congress president with Pandit Jawaharlal Nehru as its chairman. (HT Library)
  3. 3. Functions Of Planning  Make an assessment - Material, Capital and Human Resources of the country.  Formulate a Plan - for the most effective and balanced utilization of country's resources.  Determination of priorities  Indicate factors and Determine the conditions - Social, Economical and political situation.  Determine the Tools/Techniques.  Monitoring at regular intervals - Progress in execution of each stage, Recommend adjustments of policy and measures.
  4. 4. Organisation  Dr. Manmohan Singh, Chairman  Sh. Montek Singh Ahluwalia, Dy. Chairman  Shri V. Narayanasamy, Minister of State  Members  Shri B. K. Chaturvedi  Saumitra Chaudhuri  Dr. Syeda Hameed  Dr. Narender Jadhav  Prof. Abhijit Sen  Dr. Mihir Shah  Dr. K. Kasturirangan  Sh. Arun Maira  Ms. Sudha Pillai, Member Secretary  Senior Officials  Grievance Officers
  6. 6. Components Of Planning National Plans o Long term Perspective Plans o Five year Plans o Annual Plans State Plans
  7. 7. Perspective Plan  Purpose :  To indicate the desired directions of economic activities.  To serve as pointers in formulating the operational targets that go into five year plans.  The perspective plan formulated along two principal lines:  The part that deals with the overall strategy; also indicates the magnitude and type of resource mobilization that will be called for as well as with the question of external financing that may be necessary.  The other and more detailed part dealing with projected developments in a number of key sectors of the economy which have significant backward and forward linkages. Once, key sectors are laid, the perspective plan also tries to indicate a certain time phasing of activities that will be called for if these objectives are to be realized.
  8. 8. Annual Plan It is the important operational instrument of the five year plans. It provides an occasion for stocktaking It also assesses progress of the plan from year to year.
  9. 9. Five Year Plan The documented plan based on recommendations by a large number of working groups which deal with the major sector of economic activities. It lays down broad strategies, objectives, growth rate, sectoral targets, etc. Because of our federal nature, every five year plan has:  A central component  A state component (social services, agriculture, irrigation, infrastructural activities such as power, roads etc.)
  10. 10. Process of five year plans  A draft plan is presented for an approval to the National Development Council, which consist of the planning commission and the chief ministers of the states.  The council can make changes to the draft plan.  After the council's approval, it is presented to the cabinet and subsequently to parliament, whose approval makes the plan an operating document for central and state government.  Chairman, works under the overall guidance of the NDC.  Deputy chairman and members provide advice and guidance to the subject divisions for the formulation of five year plans, annual plans, state plans, monitoring plan progress.
  11. 11. First Five Year Plan(1951-55) Objectives:  To correct the disequilibrium in the Indian economy caused by the second world war and the partition of the country.  To achieve self sufficiency in food grains production and to improve availability of raw materials  To control inflationary tendencies  To attempt to provide for an all round balanced development which would ensure a rising, national income and a steady improvement in living standards over a period of five years.
  12. 12. Second Five Year Plan(1956-60) Objectives:  To secure an increase in national income by about 25 percent over five years.  To initiate rapid industrialization with special emphasis on basic and heavy industries. To generate more employment opportunities  To reduce the growing inequalities in the distribution of income and wealth. To increase the rate of investment from 7 percent of National income to 11 percent of National income by 1960-61.
  13. 13. Third Five Year Plan(1961-65) Objectives:  To secure a growth in National Income of over 5 percent per annum  To achieve self sufficiency in food grains and to increase agricultural production to meet the requirements for industrial development and export promotion  To expand basic industries like steel, chemicals, fuel, and power and machine building capacity so that future industrial requirements can be satisfied domestically.  To utilize manpower efficiently by generating more employment opportunities. Indicator GDP growth (annual %) GDP per capita (current US$) 1961 3.87 84.18 1962 3.13 59.40 1963 6.28 58.30 1964 7.44 65.36 1965 21.51 74.52
  14. 14. Plan Holiday : 1966-69 1966 and 1968 : Famine years Economic difficulties disrupted the planning process in the mid 1960s.  India faced two wars one with china in 1962 and then with Pakistan in 1965.  There was negative impact on industrial and agriculture growth.  Three annual plans guided development between FY 1966 and FY 1968 while plan policies and strategies were re-evaluated. Indicator GDP growth (annual %) GDP per capita (current US$) 1966 -0.04 120.73 1967 7.83 90.81 1968 3.37 96.95 1969 6.54 100.30
  15. 15. Fourth Five Year Plan(1969-73) Objectives:  To attain a 5.5 percent growth in national income per annum  To bring about economic stability  To achieve self reliance  To achieve social justice and equality  To utilize Panchayati Raj institutions in local and regional planning.  To recognize the management of public enterprises. Indicator GDP growth (annual %) GDP per capita (current US$) 1969 6.54 100.30 1970 5.15 107.89 1971 1.63 111.76 1972 -0.55 118.28 1973 3.32 124.11
  16. 16. Fifth Five Year Plan(1974-78) Objectives:  To remove poverty and achieve self reliance  To achieve an adequate expansion of employment opportunities particularly in rural areas.  To achieve development without stimulating further inflationary pressures by introducing fiscal and monetary measures. Indicator GDP growth (annual %) GDP per capita (current US$) 1974 1.18 145.42 1975 9.15 164.70 1976 1.66 158.12 1977 7.26 161.06 1978 5.71 186.45
  17. 17. Sixth Five Year Plan(1980-84) Objectives:  To remove widespread poverty particularly in rural areas to have an appreciable step up in the rate of growth of the economy.  To strengthen the impulses of modernization for economic and technological self reliance to provide basic needs of the people (drinking water, elementary education, health, etc).  To reduce inequalities of income and wealth through redistribution in favour of the poor. Indicator GDP growth (annual %) GDP per capita (current US$) 1980 6.74 224.48 1981 6.00 267.41 1982 3.47 270.99 1983 7.30 275.13 1984 3.82 293.12
  18. 18. Seventh Five Year Plan(1985-89) Objectives:  To achieve growth, equity, social justice, self reliance and     improved efficiency and productivity To accelerate production of food grains To increase employment opportunities To lessen agricultural constraints on industrial development To initiate rapid expansion of scientific and technological capabilities. Indicator GDP growth (annual %) GDP per capita (current US$) 1985 5.23 279.68 1986 4.77 300.52 1987 3.96 315.09 1988 9.64 345.57 1989 5.95 359.43
  19. 19. Eight Five Year Plan(1992-96) Objective:  Managing the change and transition from a centrally planned economy to a market led economy, without fearing our socio-cultural fabric. Indicator GDP growth (annual %) GDP per capita (current US$) 1992 5.48 308.73 1993 4.77 278.15 1994 6.65 306.94 1995 7.57 353.29 1996 7.56 382.22
  20. 20. Ninth Five Year Plan(1997-2001) Prepared under the United Front Govt. was released in Mar’98. The same was modified and approved by the NDC in Feb’99, (2 yrs after its implementation from Apr’97). Objectives:  The Ninth Plan was developed in the context of four important dimensions of state policy, viz. Quality of life, generation of productive employment, regional balance and self-reliance.  The Ninth Plan focused on accelerated growth, recognizing a special role for agriculture for its stronger poverty reducing and employment generating effects, which will be carried out over a 15 year period.  The focus of the Ninth Plan was on: "Growth with Social Justice 1997 1998 1999 2000 2001 and Equality' Indicator GDP growth (annual %) 4.05 6.19 7.39 4.03 5.22 GDP per capita (current US$) 409.32 425.63 423.80 450.92 452.97
  21. 21. Tenth Five Year Plan (2002-06)  Prepared with High Expectations:  GDP growth in the post-reforms period improved to an average of about 6.1 per cent in the Eighth and Ninth Plans from an average of about 5.7 percent in the 1980s, making India one of the ten fastest growing developing countries.  The percentage of population in poverty continued to decline, even if not as much as was targeted.  Population growth decelerated below 2 per cent for the first time in four decades.  Literacy increased from 52 per cent in 1991 to 65 per cent in 2001 and the improvement was evident in all States. Objectives:  To strengthen sectors such as software services and IT enabled services which were emerging and creating confidence about India's potential. Indicator GDP growth (annual %) GDP per capita (current US$) 2002 3.77 462.82 2003 8.37 483.66 2004 8.28 563.19 2005 9.30 667.68 2006 9.44 764.85
  22. 22. Objective  “Faster and More Inclusive Growth.”  Growth rate of approximately 10% by the end of plan period.  Growth of 4% in agriculture sector, faster employment creation.  Reducing disparities across regions and ensuring access to basic physical infrastructure and health and education services to all. Indicator GDP growth (annual %) GDP per capita (current US$) 2007 9.63 855.27 2008 5.12 1096.04 2009 7.66 1065.13 2010 8.37 1134.01
  23. 23. Allocation for Major Sectors Increase in provision for:  Bharat Nirman by 31.6% from Rs 18,696 crore to Rs 24,603 crore.  Education by 34.2% to Rs 32,352 crore & for health and family welfare by 21.9% to Rs 15,291 crore.  Drinking Water and Sanitation: Allocation for Rajiv Gandhi Drinking Water Mission to be increased from Rs 4,680 crore to Rs 5,850 crore and for Total Sanitation Campaign from Rs 720 crore to Rs 954 crore.
  24. 24. Means-Cum-Merit Scholarships  National Means-cum-Merit Scholarship Scheme to be     introduced to arrest drop out ratio; Selection through a national test from among students who have passed class VIII; Each student to be given Rs 6,000 per year; 100,000 scholarships to be awarded every year; A corpus fund of Rs 750 crore to be created this year, and augmented by a like amount annually over the next three years.
  25. 25. Health Sector, National Rural Health Mission  All districts to complete preparation of      District Action Health Plans by March 2007 Major emphasis to be on mother and child care and on prevention and treatment of communicable diseases Convergence sought to be achieved among various programmes such as immunization, antenatal care, nutrition and sanitation through Monthly Health Days (MHD) organised at Anganwadi centres 320,000 Associated Social Health Activists (ASHAs) recruited with over 200,000 given orientation training 90,000 link workers selected by the States AYUSH systems being mainstreamed into health delivery system at all levels; increase in allocation forNRHM from Rs 8,207 crore to Rs 9,947 crore.
  26. 26. HIV/AIDS/Polio  NACP-III, starting in 2007-08, to target high risk     groups Access to condoms to be expanded and universal access to blood screening and safe blood to be ensured More hospitals to provide treatment to prevent transmission of HIV/AIDS from mother to child; provision for AIDS control programme to be Rs 969 crore. Number of polio rounds to be increased, monovalent vaccine to be introduced, with intensive coverage in the 20 high risk districts of Uttar Pardesh and 10 districts of Bihar Provision for AIDS control programme to be Rs 969 crore.
  27. 27. Integrated Child Development Services  To cover all habitations and settlements during Eleventh Plan and to reach out to pregnant women, lactating mothers and all children below the age of six  Allocation to be increased from Rs 4,087 crore to Rs 4,761 crore.
  28. 28. National Rural Employment Gurantee Scheme  Allocation of Rs 12,000 crore for NREGS;  coverage to expand from 200 districts to 330 districts; Rs 2,800 crore provided for Sampoorna Gramin Rozgar Yojana in districts not covered by NREGS;  allocation for Swaranjayanti Gram Sarozgar Yojana to promote self employment among rural poor to increase from Rs 1,200 to Rs 1,800 crore
  29. 29. Urban Employment  Increase in allocation for Swarna Jayanti Shahari Rojgar Yojana from Rs 250 crore to Rs 344 crore.  Targeted PDS and Antyodaya Anna Yojana: Scheme for evaluation, monitoring, management and strengthening of targeted PDS to be implemented, will include computerization of PDS and an integrated information system in Food Corporation of India.
  30. 30. Scheduled Castes and Scheduled Tribes  Allocation of Rs 3,271 crore in respect of schemes benefiting only SCs and STs and Rs 17,691 crore in respect of schemes with at least 20% of benefits earmarked for SCs and STs  To increase in allocation for Rajiv Gandhi National Fellowship Programme from Rs 35 crore to Rs 88 crore  Post- Matric Scholarships: provision to be increased from Rs 440 crore to Rs 611 crore; a separate provision of Rs 91 crore proposed for similar scholarships to students belonging to socially and educationally backward classes.
  31. 31. Minorities/ Woman  Increase in share capital of National Minorities  Development and Finance Corporation to Rs 63 crore; provision of Rs 108 crore for a multisector development programme in districts with a concentration of minorities; allocation for Pre-matric scholarships at Rs 72 crore, Post-matric scholarships at Rs 90 crore and Merit-cum-Means scholarships at graduate and postgraduate levels at Rs 48.60 crore.  Outlay for 100% women specific programmes is Rs 8,795 crore and for schemes where at least 30% allocation is for women specific programmes is Rs 22,382 crore.
  32. 32. North Eastern Region (NER)  Allocation increased from Rs 12,041 crore to Rs 14,365 crore  New industrial policy for NER, with suitable fiscal incentives to be in place before March 31, 2007.
  33. 33. Supplement to GBS  Allocation under plan ‘A’ at Rs 205,100 crore  Under plan ‘B’, additional resources to the extent of Rs 7,000 crore to be found through better tax administration during the course of the year  Under plan ‘C’ resources available outside Budget to be leveraged for investment, especially in infrastructure.
  34. 34. GDP growth over the years – in USD GDP Growth of India in USD
  35. 35. GDP growth over the years - Percentage Data Source: World Bank: World Development Indicators: Last updated on October 23, 2010.
  36. 36. Thank You!!! Mr. Amit Helegaonkar Mr. Harsh Bhadauria Mr. Rajesh Kolkondi Mr. Ramesh Khadtare Mr. Prafulla Kharote Mr. Satish Kadam By 24 04 49 44 46 32