Ever since the independence in India, developmental plans for a period
of five years are being developed by the Planning Commission with the inputs
received from the states . The tenth plan completed its term in March 2007 and
the eleventh plan is currently underway. Prior to the fourth plan, the
allocation of state resources was based on schematic patterns rather than a
transparent and objective mechanism, which led to the adoption of the Gadgil
formula in 1969. Revised versions of the formula have been used since then to
determine the allocation of central assistance for state plans.
First Five-Year Plan (1951–1956)
Ø The first Indian
Prime Minister, Jawaharlal
Nehru presented the first five-year plan to the Parliament
of India on December 8, 1951
Ø The total planned
budget of 2069 crore was allocated to seven broad areas:
- irrigation and energy
- agriculture and community development
- transport and communications
- industry
- land rehabilitation
- other sectors and services
- social service
Ø The monsoon was good and there were relatively high crop yields, boosting exchange reserves and the per capita
income, which increased by 8%.
Ø National income increased more than the per capita
income due to rapid population growth.
Ø Many irrigation projects were initiated during this
period, including the Bhakra Dam and Hirakud
Dam.
Ø At the end of the plan period in 1956, five Indian Institutes of Technology(IITs) were
started as major technical institutions.
Ø The University Grant Commission was set up to take care of funding and take measures to
strengthen the higher education in the country.Contracts were signed to start
five steel plants, which came into existence in the middle of the second
five-year plan. The plan was successful.
Second Five-Year Plan (1956–1961)
Ø The second five-year plan focused on industry,
especially heavy industry.
Ø Unlike the First plan, which focused mainly on
agriculture, domestic production of industrial products was encouraged in the
Second plan, particularly in the development of the public sector.
Ø The plan followed the Mahalanobis model, an
economic development model
developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953.
Ø The plan assumed a closed economy in which the main
trading activity would be centered on importing capital goods.
Ø Hydroelectric power projects and five steel mills at
Bhilai,Durgapur, and Rourkela were established.
Ø Coal production was increased.
Ø More railway lines were added in the north east.
Ø The Atomic Energy Commission was formed in 1958 with Homi J. Bhabha as the
first chairman.
Ø The Tata Institute of Fundamental Research was established as a research
institute.
Ø In 1957 a talent search and scholarship program was
begun to find talented young students to train for work in nuclear power.
Ø The total amount allocated under the second five
year plan in India was Rs. 4,600 crore. This amount was allocated among various
sectors:
-
Power and
irrigation
- Social services
- Communications and
transport
- Miscellaneous
Ø Target Growth:4.5% Growth achieved:4.0%
Third Five-Year Plan (1961–1966)
Ø The third plan stressed on agriculture and
improvement in the production of wheat, but the brief Sino-Indian War of 1962
exposed weaknesses in the economy and shifted the focus towards the [Defence
industry].
Ø In 1965–1966, India fought a [Indo-Pak] War with
Pakistan and there was a severe drought in 1965. The war led to inflation and
the priority was shifted to price stabilization.
Ø The construction of dams continued.
Ø Many cement and fertilizer plants were also built.
Ø Punjab began producing an abundance of wheat.
Ø Many primary schools have been started in rural
areas.
Ø In an effort to bring democracy to the grass root
level, Panchayat elections have been started and the states have been given
more development responsibilities.
Ø State electricity boards and state secondary
education boards were formed.
Ø States were made responsible for secondary and
higher education.
Ø State road transportation corporations were formed
and local road building became a state responsibility.
Ø Target Growth: 5.6% Actual Growth: 2.4%
Fourth Five-Year Plan (1969–1974)
Ø At this time Indira Gandhi was the Prime Minister.
Ø The Government of
India issued an ordinance ('Banking Companies (Acquisition and Transfer of
Undertakings) Ordinance, 1969')) and nationalised the 14
largest commercial banks with effect from the midnight of July 19, 1969
Ø the Green Revolution in India advanced agriculture.
Ø In addition, the situation in East
Pakistan(now Bangladesh) was becoming dire as the Indo-Pakistani War of 1971 and Bangladesh Liberation War took Funds earmarked for the industrial development had to
be diverted for the war effort.
Ø India also performed the Smiling
Buddha underground nuclear test in 1974, partially in response to the United States eployment of the Seventh Fleet in the Bay of Bengal. The
fleet had been deployed to warn India against attacking West Pakistan and extending the war.
Ø Target Growth: 5.7% Actual Growth: 3.3%
Fifth Five-Year Plan (1974–1979)
Ø The
5th Five Year Plan commenced on 1974 and extended till 1979. The objective of
the 5th Five Year Plan was to increase the level of employment, reduce poverty
and to attain self sufficiency in agriculture.
Ø The
plan also focused on self-reliance in
agricultural production and defence.
Ø In
1978 the newly elected Morarji Desai
government rejected the plan.
Ø Electricity Supply Act was
enacted in 1975, which enabled the Central Government to enter into power
generation and transmission.
Ø The Indian
national highway system was introduced and many roads
were widened to accommodate the increasing traffic. Tourismalso expanded.
Ø Target Growth: 4.4% Actual
Growth: 5.0.
Sixth Five-Year Plan (1980–1985)
Ø The sixth plan also marked the beginning of economic liberalization.
Ø Price controls were eliminated and ration
shops were closed. This led to an increase in food prices and an increase in
the cost of living. This was the end of Nehruvian
Plan and Rajiv Gandhi was
prime minister during this period.
Ø Family planning was also expanded in order to
prevent overpopulation.
Ø In contrast to China's strict and binding one-child policy, Indian policy did not rely
on the threat of force. More prosperous areas of India adopted family planning
more rapidly than less prosperous areas, which continued to have a high birth
rate.
Ø Target Growth: 5.2% Actual Growth: 5.4%
Seventh Five-Year Plan (1985–1990)
Ø The Seventh Plan marked the comeback of the Congress Party to power.
Ø The plan laid stress on improving the productivity
level of industries by upgrading of technology.
Ø The main objectives of the 7th five year plans were
to establish growth in areas of increasing economic productivity, production of
food grains, and generating employment.
Ø The Plan expected a growth in labour force of 39
million people and employment was expected to grow at the rate of 4 percent per
year.
Ø The thrust areas of the 7th Five year plan have
been enlisted below:
- Social Justice
- Removal of
oppression of the weak
- Using modern
technology
- Agricultural
development
- Anti-poverty
programs
- Full supply of
food, clothing, and shelter
- Increasing
productivity of small- and large-scale farmers
- Making India an
Independent Economy
Ø Target Growth: 5.0% Actual Growth: 5.7%
Eighth Five-Year Plan (1992–1997)
Ø In 1991, India faced a crisis in Foreign Exchange (Forex) reserves, left with
reserves of only about US$1 billion. Thus, under pressure, the country took the
risk of reforming the socialist economy.
Ø P.V. Narasimha Rao was the twelfth Prime
Minister of the Republic of India and head of Congress Party, and led one of the most important administrations in
India's modern history overseeing a major economic transformation and several
incidents affecting national security.
Ø At that time Dr. Manmohan
Singh (currently, Prime Minister of India) launched
India's free market reforms that brought the nearly bankrupt nation back from
the edge. It was the beginning of privatisation
and liberalisation in India.
Ø Modernization of industries was a major
highlight of the Eighth Plan.
Ø Under this plan, the gradual opening of the Indian
economy was undertaken to correct the burgeoning deficit and foreign debt. Meanwhile India became a member of the World
Trade Organization on 1 January 1995.This plan can be
termed as Rao and Manmohan model of Economic development. The major objectives
included:
- controlling population growth
- poverty reduction
- employment generation
- strengthening the infrastructure
- Institutional building
- Tourism management
- Human Resource development
- Involvement of Panchayat raj
- Nagar Palikas, N.G.O'S and Decentralisation and people's participation.
Ø Energy was given priority with 26.6% of the outlay.
Ø An average annual growth rate of 6.78% against the
target 5.6% was achieved.
Ninth Five-Year Plan (1997–2002)
Ø Ninth Five Year Plan India runs through the period
from 1997 to 2002.
Ø Ninth Five Year Plan was formulated amidst the
backdrop of India's Golden jubilee of Independence..
Ø The main objectives of the Ninth Five Year Plan of
India are:
- to prioritize
agricultural sector and emphasize on the rural development
- to generate
adequate employment opportunities and promote poverty reduction
- to stabilize the
prices in order to accelerate the growth rate of the economy
- to ensure food and
nutritional security.
- to provide for the
basic infrastructural facilities like education for all, safe drinking water,
primary health care, transport, energy
- to check the
growing population increase
- to encourage
social issues like women empowerment, conservation of certain benefits for the
Special Groups of the society
- to create a
liberal market for increase in private investments
Ø During the Ninth Plan period, the growth rate was
5.35 per cent, a percentage point lower than the target GDP growth of 6.5 per
cent.
Tenth Five-Year Plan (2002–2007)
Ø The main objectives of the Tenth Five Year Plan of
India are:
- Attain 8% GDP
growth per year.
- Reduction of
poverty ratio by 5 percentage points by 2007.
- Providing gainful
and high-quality employment at least to the addition to the labour force.
- Reduction in
gender gaps in literacy and wage rates by at least 50% by 2007.
- 20 point program
was introduced.
Ø Target growth:8.1% Growth achieved:7.7%
Eleventh Five-Year Plan (2007–2012)
Ø The eleventh plan has the following objectives:
1. Income & Poverty
o Accelerate GDP growth from 8% to 10% and then
maintain at 10% in the 12th Plan in order to double per capita income by
2016–17
o Increase
agricultural GDP growth rate to 4% per year to ensure a broader spread of
benefits
o Create
70 million new work opportunities.
o Reduce
educated unemployment to below 5%.
o Raise
real wage rate of unskilled workers by 20 percent.
o Reduce
the headcount ratio of consumption poverty by 10 percentage points.
2. Education
o Reduce dropout rates of children from elementary
school from 52.2% in 2003–04 to 20% by 2011–12
o Develop
minimum standards of educational attainment in elementary school, and by
regular testing monitor effectiveness of education to ensure quality
o Increase
literacy rate for persons of age 7 years or above to 85%
o Lower
gender gap in literacy to 10 percentage point
o Increase
the percentage of each cohort going to higher education from the present 10% to
15% by the end of the plan
3. Health
o Reduce infant mortality rate to 28 and maternal
mortality ratio to 1 per 1000 live births
o Reduce
Total Fertility Rate to 2.1
o Provide
clean drinking water for all by 2009 and ensure that there are no slip-backs
o Reduce
malnutrition among children of age group 0–3 to half its present level
o Reduce anemia among women and girls by 50% by the end of the plan
4. Women and Children
o Raise the sex ratio for age group 0–6 to 935 by
2011–12 and to 950 by 2016–17
o Ensure
that at least 33 percent of the direct and indirect beneficiaries of all
government schemes are women and girl children
o Ensure
that all children enjoy a safe childhood, without any compulsion to work
5. Infrastructure
o Ensure electricity connection to all villages and
BPL households by 2009 and round-the-clock power.
o Ensure
all-weather road connection to all habitation with population 1000 and above
(500 in hilly and tribal areas) by 2009, and ensure coverage of all significant
habitation by 2015
o Connect
every village by telephone by November 2007 and provide broadband connectivity
to all villages by 2012
o Provide
homestead sites to all by 2012 and step up the pace of house construction for
rural poor to cover all the poor by 2016–17
6. Environment
o Increase forest and tree cover by 5 percentage
points.
o Attain
WHO standards of air quality in all major cities by 2011–12.
o Treat
all urban waste water by 2011–12 to clean river waters.
o Increase
energy efficiency by 20 %
Ø Target growth:8.33% Growth achieved:7.9%
Twelfth Five Year
Plan (2012-2017)
Ø 12th Five Year
Plan of the Government
of India (2012-17) is under drafting which aims the
growth rate at 9.5% but With the deteriorating global situation, it seems to be
impossible to achieve as said by the Deputy Chairman of the Planning Commission
Mr. Montek Singh Ahluwalia.
Ø Some features of
12th five year plan are as follows:
a. Poverty
o The Government
intends to reduce poverty by 10 per cent during the 12th Five-Year Plan .
o According to the
Tendulkar methodology, the percentage of population below the poverty line was
29.8 per cent at the end of 2009-10. This number includes 33.8 per cent in the
rural areas and 20.9 per cent in the urban areas.( the Tendulkar Committee's poverty
line: expenditure of Rs 32 a day in urban areas and Rs 26 in rural areas)
b. Health
o The Planning
Commission has also dubbed the 12th Five Year Plan as the Health Plan.
o The funds for
healthcare delivery in the 12th Plan Period are likely to remain at 1.58 per
cent of GDP.
o Insurance is likely to be the mechanism for providing universal
health coverage.
No comments:
Post a Comment