Economic planning

1. FIVE YEAR PLANS IN INDIA 5TH &6TH

2. Contents:
Introduction about economic planning
Planning machinery in India
Salient features of Indian five years plan
Objectives
5th and 6th planning details

3. ECONOMIC PLANNING:
It is planning in a certain period in order to complete the
task with in estimated amount. Its time period is about 5
years.
Firstly economic planning was started in Russia in 1927.
In the year 1929-1930 there was a depression or recession
through out the world except RUSSIA.
 Moksha Gunda Visveswaraya wrote a book named ‘’The
planned economy for India’ ’in the year 1934. He was
honoured as “Father of planning”.

4. INDIA ECONOMIC PLANNING
 Firstly Subash Chandra Bose raised the economic planning and then
in 1938 there was a conference called AlCC–
ALL INDIA CONGRESS COMMITTEE.
 In the same year planning commission for India is raised.
 In 1950, planning commission of India started . some other plans
have also been implemented but failed.
 In 1943-1944 Bombay planning (3 Members-mainly A.D DHALAL).
 In 1944-1945 Gandhi planning (5 Members-mainly AGARWAL).
It is a policy which is implemented only by cabinet ministers.

5. PLANNING MACHINERY IN INDIA:
The two major agencies which are responsible for economic
planning in India are the “PLANNING COMMISSION” and the
“NATIONAL DEVELOPMENT COUNCIL”.
PLANNING COMMISSION:
In march 1950 planning commission of India was set up for the
first time by Jawaharlal Nehru as its chairman.
 This commission is composed of 8 members.
Main functions of the planning commission include investigation ,
formulation of plan , determining plan priorities , identifying the
factors etc ….

6. NATIONAL DEVELIOPMENT COUNCIL
The national development council is working as the highest
national forum for economic planning in India since 6th August
1952
a) Prime minister of India.
b) All state chief ministers.
c) Member of planning commission.
FUCTIONS:
To make periodical review of national plan at different times.
Finally, the NDC approves the draft plan prepared by the
planning commission of our country.

7. SALIENT FEATURES OF INDIA’S FIVE YEAR PLAN
Public sector and private sector plan:
In each five year plan of the country, public sector investment and
private sector investment amount is separately fixed, it is quite
natural that a separate investment outlay for public as well as the
private sector is being maintained in each plan.
Programme implementation and evaluation:
Indian planning system is broadly supported by programme
implementation and evaluation machinery, which used to play a
very important role. Moreover there is an evolution machinery
which usually conduct preprojective evaluation post-project
evaluation of every planning projects of the country.

8. MAIN OBJECTIVES OF PLANNING IN INDIA:
ECONOMICAL GROWTH: Economical growth refers
to an increase in a country’s real output of goods and
services. It is quantitative in nature. Hence it is
measurable.
Increase Employment:
Another objective of the plans is better utilization of
man power resource and increasing employment
opportunities. Measures have been taken to provide
employment to millions of people during plans. It is
estimated that by the end of Tenth Plan (2007) 39
crore people will be employed

9. Planning
commission
NDC
Planning
commission
Cabinet
ministers
Planning
commission
NDC
Parliament

10. 5TH AND 6TH PLANNING
Fifth and Sixth plans are totally
implemented by INDIRA GANDHI.

11. FIFTH PLANNING:1974-1978
According to economic planning ,
this plan had been implemented only
for 4 years because of Mid term
election.
Chair man- Indira Gandhi
Vice chair man- D.P DHAR

12. INDIRA GANDHI D.P DHAR

13. MAIN THEME:
There should be a balance on exports and
imports.
Simply in India the production of rice is more
so it should be exported and what we need is to
be imported. It is the main strategy .
It is Deeply about exports.
PL664 (rice) is exported only for the America.
PL480 is exported for other countries.

14. OBJECTIVE:
To decrease poverty.
1. To provide minimum price , employment and needs (food,
clothes& house).
2. Public Distribution system (Ration).
 In 1983 NTR introduced ration in Andhra Pradesh.

15. Investments:
Estimated budget : 39,303 crores
Final budget : 39,426 crores
Government Invested more in :
 Industries – 26%
 Agriculture – 22%
 Less in Service sector – 17.3%

16. Economical Targets &Final results
Target of GDP – 4.4%
Final result of GDP- 4.9%
Target of food production – 125 Million
Tones
Target of industrial sector – 8.2%
Final result of industrial sector- 6%

17. DISADVANTAGE
1) Prices increased.
2) Emergency situation (U.P Allahabad
justified inner fluctuations used to
create the emergency rule) ARTICAL
325
3) It ended before five year’s plan.

18. Schemes
1974 – MNP (Minimum need programme)
1974 – HADP (Hill area development programme)
1975 – SFDA (small farmers development agency)
1977 – NTPC (National thermal power corporation)
1977 – FWP (Food for work programme)
1977 – NIRD (National institute of rural development)

19. SIXTH PLANNING
1978-1983{Janata party}
The plan was introduced by MORARJI DESAI (P.M)
Chairman - Morarji desai
Vice chairman - D.T LAKADAWALA

20. PLANNING
IRDP(integrated rural development programme)- 1978-1979
TRPYSEM-1974(Training for rural youth self employment
programme)
1980-1985- INDIRA GANDHI was PM.
Chair man – INDIRA GANDHI
Vice chair man –ND Tiwari

21. OBJECTIVE
1.To Decrease unemployment.
2.Poverty decreased by 37% from 48%
3.Providing minimum needs.
4.Environment protection.

22. Investments:
Estimated budget – 97,500 crores
Final budget – 1,09,290 crores
Government invested more in – manufacture sector -28%
Agriculture-24%
Less in –service sector - 16%

23. ACHIEVEMENTS
Target GDP - 5.2%
Final result of GDP- 5.4%
Per capita income increased by-3.2%
Food production- 145 million tones
Industrial sector -5%
Rural development - 64%

24. FAILURES
1. Prices increased.
2. Estimated decrease in poverty is not reached.

25. SCHEMES
1980-October-2- IRDA(Integrated rural development
programme)
1980- NREP(National rural employment
programme)
These both are called as twin planning
1982- DWACRA(Development of women and children
in rural area)
1982-EXIM(Export and import's bank)
1984-GAIL(Gas authority of India limited)

26. GROWTH RATE