PLAN

Focus areas and details

First Plan (1951 – 56)

Target growth: 2.1% Achieved growth: 3.6%

·        It was based on Harrod-Domar Model.

·        Community Development Program launched in 1952

·        Focus on agriculture, price stability, power and transport

·        It was a successful plan primarily because of good harvests in the last two years of the plan

Second Plan (1956 – 61)

Target Growth: 4.5%

Actual Growth: 4.27%

·        Also called Mahalanobis Plan named after the well-known economist

·        Focus – rapid industrialization Advocated huge imports through foreign loans.

·        Shifted basic emphasis from agriculture to industry far too soon.

·        During this plan, prices increased by 30%, against a decline of 13% during the First Plan

Third Plan (1961 – 66)

Target Growth: 5.6%

Actual Growth: 2.84%

·        At its conception, it was felt that Indian economy has entered a take-off stage.

·        Therefore, its aim was to make India a ‘self-reliant’ and ‘self-generating’ economy.

·        Based on the experience of first two plans, agriculture was given top priority to support the exports and industry.

·        Complete failure in reaching the targets due to unforeseen events – Chinese aggression (1962), Indo-Pak war (1965), severe drought 1965-66

Three Annual Plans (1966-69)

Plan holiday for 3years.

·        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 was implemented. It involving wide-spread distribution of high yielding varieties of seeds, extensive use of fertilizers, exploitation of irrigation potential and soil conservation.

·        During the Annual Plans, the economy absorbed the shocks generated during the Third Plan It paved the path for the planned growth ahead.

Fourth Plan (1969 – 74)

Target Growth: 5.7%

Actual Growth: 3.30%

·        Slogan of “Garbi Hatao” was given in 1971

·        Emphasis was on growth rate of agriculture to enable other sectors to move forward.

·        First two years of the plan saw record production.

·        The last three years did not measure up due to poor monsoon.

·        Influx of Bangladeshi refugees before and after 1971 Indo-Pak war was an important issue

Fifth Plan (1974-79)

Target Growth: 4.4%

Actual Growth: 3.8

·        The fifth plan was prepared and launched by D.D. Dhar.

·        It proposed to achieve two main objectives: ‘removal of poverty’ (Garibi Hatao) and ‘attainment of self-reliance’

·        Promotion of high rate of growth, better distribution of income and significant growth in the domestic rate of savings were seen as key instruments.

Rolling Plan (1978 – 80)

·        There were 2 Sixth Plans. Janta Govt. put forward a plan for 1978-1983.

·        However, the government lasted for only 2 years. Congress Govt. returned to power in 1980 and launched a different plan.

Sixth Plan (1980 – 85)

Target Growth: 5.2%

Actual Growth: 5.66%

·        Focus – Increase in national income, modernization of technology, ensuring continuous decrease in poverty and unemployment, population control through family planning, etc.

Seventh Plan (1985 – 90)

Target Growth: 5.0%

Actual Growth: 6.01%

·        Focus – rapid growth in food-grains production, increased employment opportunities and productivity within the framework of basic tenants of planning. First time private sector got the priority over public sector

Eighth Plan (1992 – 97)

Target growth:5.6%

Actual growth:6.8%.

·        Focus on “Human Resource Development” The eighth plan was postponed by two years because of political uncertainty at the Centre .

·        Worsening Balance of Payment position and inflation during 1990-91 were the key issues during the launch of the plan.

·        The plan undertook drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6%.

·        Some of the main economic outcomes 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 Plan (1997- 2002)

Target Growth: 6.5%

Actual Growth: 5.35%

·        Aim was “Growth with Social Justice”

·        It was developed in the context of four important dimensions: Quality of life, generation of productive employment, regional balance and self-reliance.

Tenth Plan (2002 – 2007)

Target growth: 8.1%

Growth achieved:7.7%

·        Plan aim at ”Double the Per Capita Income” in the next 10 years

·        To achieve 8.1% GDP growth rate Reduction of poverty ratio by 5 percentage points by 2007.

·        Providing gainful high quality employment to the addition to the labour force over the tenth plan period.

·        Reduction in gender gaps in literacy and wage rates by atleast 50% by 2007.

·        Increase in literacy rate to 72% within the plan period and to 80% by 2012.

·        Reduction of Infant Mortality Rate (IMR) to 45 per 1000 live births by 2007 and to 28 by 2012.

·        Increase in forest and tree cover to 25% by 2007 and 33% by 2012.

·        Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012

Eleventh Plan (2007 – 2012) Target growth: 8.1%

Growth achieved:7.9%

·        Twelfth Plan focuses “Faster and more Inclusive Growth”. Prepared by C Rangarajan to: Accelerate GDP growth from 8% to 10%. Increase agricultural GDP growth rate to 4% per year.

·        Create 70 million new work opportunities and reduce educated unemployment to below 5%.

·        Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17 11

·        Ensure direct and indirect beneficiaries of all government schemes are women and girl children Connect every village by telephone and provide broadband connectivity to all villages

·        Attain WHO standards of air quality in all major cities by 2011- 12. Increase energy efficiency by 20 percentage points by 2016-17.

Twelfth Plan (2012 – 2017) Target Growth :8%

·        Twelfth Plan focuses “Faster and more Inclusive and Sustainable Growth”.

·        Poverty rate to be reduced by 10% than the rate at the end of 11th plan.

·        End gender gap and social gap in school enrolment.

·        Reduce under nutrition of children in age group 0-3 to half of NFHS-3 levels.

·        Increase green cover by 1 million hectare every year. Increase renewable energy during Five Year Period.