Five year plans in India- Overview until 4th five year plan (1950-1974)

1. FIVE YEAR PLANS IN INDIA
- AKSHAYA K (2017201003)

2. WHAT IS ECONOMIC PLANNING?
Economic planning is the process by which the
limited natural resources are used skillfully so
as to achieve the desired goals.

3. NEED FOR PLANNING IN INDIA
• To raise the national income.
• To increase investments.
• To reduce inequalities of income and wealth.
• To expand employment opportunities.
• To remove the bottlenecks in all the sectors.

4. PLANNING COMMISSION OF INDIA
• Setup in the year, 1950.
• The economy of india is based on plans which are developed, executed and
monitored by planning commission of india.
• Prime minister is the chairman of the commission while the commission
nominates the deputy chairman who has the rank of cabinet minister.
• India is currently on its twelvth five year plan.
• The commission has been abolished in the year, 2014.
• It is replaced by NITI Aayog.

5. FIRST FIVE YEAR PLAN (1951-1956)
• Known as Harrod Domar Model.
• Priority for primary sector.
• National income growth from 11% to 18%.
• Increase in Food grain production.
• UGC was established.
• Bakhra nangal and Hirakund dam were built.
• Damodar Valley project was carried out.
• Achieved growth rate of 3.6% (more than the target).

6. SECOND FIVE YEAR PLAN (1956-1961)
• Based on P C Mahalanobis Model.
• Priority to the secondary sector.
• Commencement of steel plants in Bhilai, Durgapur and Rourkela.
• Tata institute of Fundamental Research was established.
• Atomic Energy Commission -1957.
• Growth rate of 4.27%.

7. THIRD FIVE YEAR PLAN (1961-1966)
• This plan is called ‘Gadgil Yojna’.
• Priority to agriculture and production of wheat.
• Devaluation of currency.
• Cement and fertilizer industry.
• The main target of this plan was to make the economy independent.
• Many primary schools were built in rural areas.
• Was a failure due to the wars.

8. PLAN HOLIDAY (1966-1969)
Reasons:
o Failure of third five year plan.
o Indo-Pak War.
• Annual plans were made with equal importance to primary and secondary sectors

9. FOURTH FIVE YEAR PLAN (1969-1974)
• The main objectives were growth with stability and progressive achievement of self
reliance.
• Nationalization of 14 banks in 1969
• “Smiling Budha Test” in 1974
• Oil crisis of 1973
• Drought in 1972-1973
• Worrying BOP
• The plan failed. (Target GDP -5.7% Actual- 3.3%)