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Today we will be learning about the economic planning in India. Let&#39;s first know the background of it.

When the British left India, the Indian economy was in a very bad state. The basic infrastructure was missing. So there was a challenge to build the economy from scratch. For this, economic planning was adopted. This was one of the things that we adopted from the Soviet Union. The task of planning was given to the Planning Commission, which was established in 1950. The Prime Minister was the Chairman of this commission. But in 2015, it was replaced by NITI Aayog (National Institution for Transforming India) on 1 January 2015 by PM Narendra Modi.

<h2>Five year plans</h2>

Let&#39;s discuss the Five-Year Plans now. The first five year plan was started by our first Prime Minister Pandit Jawaharlal Nehru in 1951.

FIRST FIVE-YEAR PLAN (1951-56)

It was based on the Harrod-Domar Model. Objectives were:

<ol>
	<li>To correct the disequilibrium in the economy caused by the influx of refugees, food shortage and increasing inflation.</li>
	<li>To have all-around balanced development to ensure a rising national income and improvement in living standards. It emphasis on agriculture, price stability, power & transport.</li>
</ol>

SECOND FIVE-YEAR PLAN (1956-61)

It is known as Mahala Nobis Plan after its chief architect PC Mahala Nobis. The objective was rapid industrialization with basic and heavy industries. The Industrial Policy of 1956 emphasized the role of the Public Sector. Shifted basic emphasis from agriculture to Industry.

THIRD FIVE-YEAR PLAN (1961-66)

The objective was to make India a ‘self-reliant’ and ‘self generating’ economy. Also called ‘Gadgil Yojana’. Agriculture was again given top priority. It is focused on reducing the inequalities of income and wealth. The IndoChina War (1962) and Indo-Pak war (1965) along with severe drought led to its failure, and India had to borrow from the IMF.

THREE ANNUAL PLAN (1966-69)

There was no long-term planning in these 3 years so it is known as Plan holiday. The emphasis was on agriculture. The Green Revolution was pioneered during this period. Planning restarted in 1969 after the economy stabilised during annual plans.

FORTH FIVE-YEAR PLAN (1969-74)

The objective was to ‘grow with stability and progress towards self-reliance&#39;. Focussed on agriculture mainly. It witnessed the Indo-Pak war (1971) and an influx of Bangladeshi refugees, resulting in High Inflation, prices increased by about 40-60%

FIFTH FIVE-YEAR PLAN (1974-79)

It formulated by D.D. Dhar and objectives were:

<ol>
	<li>Removal of poverty (Garibi Hatao)</li>
	<li>Self-reliance, through significant growth in domestic savings. National Program of Minimum Needs (NPMN) was initiated which focussed on primary education, drinking water, medical facilities in rural areas, electrification, etc.</li>
</ol>

The plan was terminated in 1978, instead of 1979, as the government changed.

ROLLING PLAN (1978-80)

It is called a Rolling Plan because there were 2 Plans, one by the Janata Party Government which was in operation for 2 years and the second by the Congress Government when it returned to power in 1980.

SIXTH FIVE-YEAR PLAN (1980-85)

Objectives: Increase in national income, modernization of technology, ensuring a continuous decrease in poverty and unemployment, population control through family planning, etc.

SEVENTH FIVE-YEAR PLAN (1985-90)

&#39;Jawahar Rozgar Yojana’ was launched under this plan. Vakil-Brahmananda’s wage-good strategy was adopted. Private sector was given priority over the public sector in this planning. It focussed on policies to achieve rapid growth in food-grains production and increased employment opportunities. The economy recorded a 6% growth rate.

EIGHTH FIVE-YEAR PLAN (1992-97)

The plan undertook new measures to incorporate LPG reforms and to grow simultaneously, focused on the modernization of industries. Rapid economic growth due to high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, there was an improvement in the balance of trade and current account deficit. Indicative planning was first used in this plan, based on the model of John. W. Muller.

NINTH FIVE-YEAR PLAN (1997-2002)

The main focus of this plan was ‘growth with justice and equity.’ It was launched in the 50th year of the independence of India. Economy recorded a 5.6% growth rate when the target was 7%. The services grew at the rate of 7.8%.

TENTH FIVE-YEAR PLAN (2002-2007)

Its objectives included doubling per capita income, achieving a growth rate of 8%, reducing the poverty ratio to 20% and universal access to primary education. A 20-point programme was introduced.

ELEVENTH FIVE-YEAR PLAN (2007-2012)

It prepared by C. Rangarajan with the motto ‘faster and more inclusive growth.’ It Focussed on:

<ol>
	<li>Increase in agricultural GDP growth.</li>
	<li>Reduce dropout rates of children from elementary school.</li>
	<li>Increase literacy rate.</li>
	<li>Reduce infant mortality rate.</li>
	<li>Ensure electricity connection to all villages.</li>
	<li>Increase forest and tree cover.</li>
</ol>

TWELFTH FIVE-YEAR PLAN (2012-2017)

Its motto is “faster, sustainable and more inclusive growth”. It emphasis is on inclusive development focusing on agriculture and crucial social sectors including health, education, women and children.It was the last 5-year plan. 

Hope all your queries related to this topic are clear. Stay in touch for more.

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