Planning commision of india

FIVE YEAR PLANS
PLANNING COMMISSIONPLANNING COMMISSION
IN INDIAIN INDIA
:- PALLAV TYAGI

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.

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

India's first Prime
Minister, Jawaharlal
Nehru, establishes a
five-year plan for
agricultural reform,
committing India to a
socialist path to
development.

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.

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

FIVE YEAR PLANS
THE GOALS OF THE FIVE YEAR PLANS ARE:
 GROWTH
 MODERNISATION
 SELF-RELIANCE
 AND EQUITY.

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.

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.

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.

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.

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."

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).

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.

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.

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.

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.

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.

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.

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%.

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.

 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.

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.

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.

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.

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

 (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.

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

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

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

 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

 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

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

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

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

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

FUNDAMENTAL FAILURES OF PLANNING
(Contd.)
FAILURE TO REDUCE CONCENTRATION OF
ECONOMIC POWER
FAILURE TO IMPLEMENT LAND REFORMS

Planning commision of india

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