The document summarizes India's 12th Five Year Plan (2012-2017). Key points include: the plan aims for 8.2% average GDP growth through faster, more inclusive and sustainable growth. Major objectives are better agricultural and job growth. Strategic challenges include improving infrastructure, education, health, energy and urban development. The plan sets targets for key sectors and priorities increasing funding for health, education, and infrastructure development.

1. Presented by
Shwetha N V
PALB 4121

3. What is plan?
 A plan spells out how the resources of a nation should be
put to use.
 It should have some general goals as well as specific
objectives which are to be achieved within specific
period of time.
 In India, plans are of five year duration and are called
FIVE YEAR PLAN.

4. PLANNING COMMISSION
 The planning commission is an organization in the
government of India which formulates India's five year plan .
 It was Set up on 15 Mar, 1950 with prime minister Jawaharlal
Nehru as the chairman.
 Now Mr. Montek Singh Ahluwalia holds the position of
deputy chairman.

5. Five year
plan
Period Target growth rate
of GDP (%)
Achieveme
nt (%)
First plan 1951-56 2.1 3.6
Second plan 1956-61 4.5 4.21
Third plan 1961-66 5.6 2.72
Fourth plan 1969-74 5.7 2.05
Fifth plan 1974-79 4.4 4.83
Previous Five Year Plans

6. 15-05-
2013
Five year plan Period Target growth rate of
GDP (%)
Achievement
(%)
Sixth plan 1980-85 5.2 5.54
Seventh plan 1985-90 5.0 6.02
Eight plan 1992-97 5.6 6.68
Ninth Plan 1997-02 6.5 5.55
Tenth plan 2002-07 8.0 7.8
Eleventh plan 2007-12 9.0 7.9
Twelfth plan 2012-17 9.0 -

7. Growth Rate (in %)

8. Accelerate GDP growth from 8% to 10%
Increase agricultural GDP growth rate to 4%
Create 70 million new work opportunities.
Increase literacy rate for persons of age 7 years or
above to 85%
Target growth: 9% ; Growth achieved:7.9%
11th Five Year Plan Highlights

9. • The government on 4th October approved the 12th five
year plan (2012-17) that set average growth target at 8.2
percent.
• The theme of the Approach Paper is
“Faster, Sustainable and more inclusive growth” .
15-05-
2013
9
12th Five Year Plan

10. Twelfth Plan Objectives
 Basic objective : Faster, More Inclusive, and Sustainable
Growth.
 Could aim at 9.0 to 9.5 percent
 For growth to be more inclusive we need: Better performance in
agriculture
 Faster creation of jobs, especially in manufacturing
 Stronger efforts at health, education and Infrastructure.
 Special plans for disadvantaged/backward regions

11. Based on an intensive process within the Commission, following "Twelve
Strategy Challenges" have been identified
1. Enhancing the Capacity for Growth
2. Enhancing Skills and Faster Generation of
Employment
3. Managing the Environment
4. Markets for Efficiency and Inclusion
5. Decentralization, Empowerment and Information
6. Technology and Innovation
Strategic Challenges

12. 7. Securing the Energy Future for India
8. Accelerated Development of Transport Infrastructure
9. Rural Transformation and Sustained Growth of
Agriculture
10. Managing Urbanization
11. Improved Access to Quality Education
12. Better Preventive and Curative Health Care
Strategic Challenges

13. 12th Five Year Plan :
Sectors

14. Sector wise Growth Targets

15. Sl.No. Sectors 11th FYP (achieved)
(in %)
12th FYP (in
%)
1 Agriculture, Forestry & Fishing 3.7 4.0
2 Mining 4.7 8.0
3 Manufacturing 7.7 9.8
4 Elect. Gas & Water Supply 6.4 8.5
5 Construction 7.8 10.0
6 Trade, Hotels & Restaurant+
Transport, Storage &
Communication
9.9 11.0
7
8 Financing, Insurance, Real
Estate & Business services
10.7 10.0
9 Community, Social & Personal
Services
9.4 8.0
11 Industry 7.4 9.6
12 Services 10.0 10.0
Growth Rate Targets

16. Agriculture
 Target at least 4% growth for agriculture.
 Cereals are on target for 1.5 to 2% growth.
 Land and water are the critical constraints. Technology must focus
on land productivity and water use efficiency.
 Farmers need better functioning markets for both outputs and
inputs. Also, better rural infrastructure, including storage and food
processing
 States must act to modify APMC Act/Rules, modernize land records
and enable properly recorded land lease markets.

17. Industry
 Investment and capacity additions are critical for
sustained industrial growth.
 Need to grow at 11-12% per year to create 2 million
additional jobs per year. Growth in 11th Plan is in 8%.
 Indian industry must develop greater domestic value addition.
 Tune-up FDI and trade policies to attract quality investment in
critical areas.
 Improve business regulatory framework: ‘cost of doing
business’, transparency, incentives for R&D, innovation etc.
 Better consultation and co-ordination in industrial policy
making

18. Industry
 Some sectors should be given special attention because they contribute
most to our objectives
e.g. Create large employment: textiles and garments, leather and footwear;
gems and jewellery; food processing industries
 Deepen technological capabilities:
 Machine tools; IT hardware and electronics
 Provide strategic security:
 telecom equipment; aerospace; shipping; defence equipment
 Capital equipment for infrastructure growth:
 Heavy electrical equipment; Heavy transport and earth-moving equipment
 Sectoral plans are being prepared for each of the above with involvement
of industry associations and the concerned Ministries

19. Education
and Skill
Development
 Must aim at universalisation of secondary education by 2017
 Must aim at raising the Gross Enrolment Ratio (GER) in Higher Education to 20
percent by 2017 and 25 percent by 2022
 Must focus on quality of education. Must invest in faculty development and
teachers’ training
 Must aim at significant reduction in social, gender and regional gaps in education.
Targets to be set for this purpose
 Research and innovation in higher education must be encouraged with cross-
linkages between institutions and industry

20. Health
 Better health is not only about curative care, but about better prevention,
Clean drinking water, sanitation and better nutrition, childcare, etc.
Convergence of schemes across Ministries is needed.
 Expenditure on health by Centre and States to increase from 1.3% of
GDP to at least 2.0%, and perhaps 2.5% of GDP by end of 12th Plan
 Desperate shortage of medical personnel. Need targeted approach to
increase seats in medical colleges, nursing colleges and other licensed
health professionals
 Health insurance cover should be expanded to all disadvantaged groups
 Focus on women and children; ICDS needs to be revamped

21. Energy
 Commercial energy demand will increase at 7% p.a. if
GDP grows at 9%. This will require a major supply side
response and also demand management
 Energy pricing is a major issue. Petroleum and Coal
prices are significantly below world prices and world
prices are unlikely to soften.

22. 1. Power Sector Issues
 We must set a target of 100,000 MW capacity in 12th Plan
(against achievement of 50,000 MW in Eleventh Plan)
 Coal availability will be a major constraint
 Hydro-power development seriously hindered by forest
and environment clearance procedures. Himalayan States
complain strongly.
 Electricity tariffs not being revised to reflect rising costs.
Regulators are being held back from allowing justified
tariff increases.

23. 2. Other Energy Sources
 Nuclear power programme must continue with necessary
safety review.
 Solar Mission is seriously underfunded.
 Need longer term energy solution for cooking in rural areas.
Expand LPG network (with cash subsidy for the deserving, not
subsidized prices). Also use off grid solar and bio-mass energy
 Wind power development, including off shore wind power,
needs to be encouraged

24. Urban Development
 India’s urban population is expected to increase from 400 million in
2011 to about 600 million or more by 2030
 Critical challenges are basic urban services especially for the poor:
water, sewerage, sanitation, solid waste management, affordable
housing, public transport
 Investment required in urban infrastructure is estimated at `60 lakh
crore over the next 20 years
 We need to develop and propagate innovative ways of municipal
financing, through Public-Private Partnerships (PPPs)
 Land management strategies key for good urban development as well
as financing urban infrastructure development

25. Infrastructure
 Railways’ Western and Eastern Dedicated Freight Corridors must be
completed by the end of the Twelfth Plan
 High Speed Rail link between Delhi-Mumbai and Delhi-Kolkata in the
Twelfth Five Year Plan
 Complete the linkages between the ports and the existing road and rail
network. Need to deepen existing ports. Increase bulk/container capacity
 Ensure sufficient provision for maintenance of the already-built roads
 Invest in unified tolling and better safety on highways
 Improve bus services/public transport in smaller cities, towns and districts.

27. Resource Allocation Priorities in 12th Plan
 Health and Education received less than projected in Eleventh
Plan. Allocations for these sectors have increased in 12th Plan
 Health, Education and Skill Development together in the
Centre’s Plan have increased by 1.2 percent point of GDP
 Infrastructure, including irrigation and watershed management
and urban infrastructure, will need additional 0.7 percentage
point of GDP over the next 4 years
 Use of PPP must be encouraged, including in the social sector,
i.e. health and education. Efforts on this front need to be
intensified