Outline of Five-Year Plans Over the Years
The table below states the outline of the five-year plan along with its details:
(1951 - 56)
: 2.1 %
It was based on Harrod-Domar Model.
The influx of refugees, severe food shortage & mounting inflation confronted the country at the onset of the first five-year plan.
The Plan Focused 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. Objectives of rehabilitation of refugees, food self-sufficiency & control of prices were more or less achieved.
(1956 - 61) Target Growth:
Simple aggregative Harrod Domar Growth Model was again used for overall projections and the strategy of resource allocation to broad sectors as agriculture & Industry was based on two & four sector Model prepared by Prof. P C Mahalanobis. (Plan is also called Mahalanobis Plan).
The second plan was conceived in an atmosphere of economic stability. It was felt agriculture could be accorded lower priority.
The Plan Focused on rapid industrialization-heavy & basic industries. Advocated huge imports through foreign loans.
The Industrial Policy 1956 was based on the establishment of a socialistic pattern of society as the goal of economic policy.
Acute shortage of forex led to pruning of development targets, the price rise was also seen (about 30%) vis a vis decline in the earlier Plan & the 2nd FYP was only moderately successful.
(1961 - 66)
Growth: 5.6% Actual Growth:
At its conception, it was felt that the Indian economy has entered a “takeoff stage”. Therefore, it aimed to make India a 'self-reliant' and 'self-generating’ economy.
Based on the experience of the first two plans (agricultural production was seen as a limiting factor in India’s economic development), agriculture was given top priority to support the exports and industry.
The Plan was a thorough failure in reaching the targets due to unforeseen events - Chinese aggression (1962), Indo-Pak war (1965), severe drought 1965-66. Due to conflicts, the approach during the later phase was shifted from development to defence & development.
69) euphemistically described as
Failure of the Third Plan that of the devaluation of the rupee (to boost exports) along with the inflationary recession led to the postponement of the Fourth FYP. Three Annual Plans were introduced instead. 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 involves the widespread 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.
(1969 - 74)
Refusal of supply of essential equipment and raw materials from the allies during the Indo Pak war resulted in twin objectives of “growth with stability “and “progressive achievement of self-reliance “ for the Fourth Plan.
The main emphasis was on the growth rate of agriculture to enable other sectors to move forward. The first two years of the plan saw record production. The last three years did not measure up due to poor monsoon. Implementation of Family Planning Programmes was amongst major targets of the Plan.
The influx of Bangladeshi refugees before and after the 1971 Indo-Pak war was an important issue along with the price situation deteriorating to crisis proportions and the plan is considered as a big failure.
Fifth Plan (1974-79)
The final draft of the fifth plan was prepared and launched by D.P. Dhar in the backdrop of economic crisis arising out of run-away inflation fueled by a hike in oil prices and failure of the Govt. takeover of the wholesale trade in wheat.
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
Due to high inflation, cost calculations for the Plan proved to be completely wrong and the original public sector outlay had to be revised upwards. After the promulgation of the emergency in 1975, the emphasis shifted to the implementation of the Prime Ministers 20 Point Programme. FYP was relegated to the background and when Janta Party came to power in 1978, the Plan was terminated.
Rolling Plan (1978 - 80)
There were 2 Sixth Plans. Janta Govt. put forward a plan for 19781983 emphasizing on employment, in contrast to Nehru Model which the Govt criticized for the concentration of power, widening inequality & for mounting poverty. However, the government lasted for only 2 years. Congress Govt. returned to power in 1980 and launched a different plan aimed at directly attacking the problem of poverty by creating conditions of an expanding economy.
(1980 - 85) Target Growth:
The Plan focused on an increase in national income, modernization of technology, ensuring a continuous decrease in poverty and unemployment through schemes for transferring skills (TRYSEM) and sets (IRDP) and providing slack season employment (NREP), controlling population explosion etc. Broadly, the sixth Plan could be taken as a success as most of the target were realized even though during the last year (1984-85) many parts of the country faced severe famine conditions and agricultural output was less than the record output of the previous year.
(1985 - 90) Target Growth:
The Plan aimed at accelerating food grain production, increasing employment opportunities & raising productivity with a focus on ‘food, work & productivity.
The plan was very successful as the economy recorded a 6% growth rate against the targeted 5% with the decade of 80s struggling out of the’ Hindu Rate of Growth’.
The eighth plan was postponed by two years because of political uncertainty at the Centre
Eighth Plan (1992 - 97)
: 5.6 %
Actual Growth: 6.8%
Worsening Balance of Payment position, rising debt burden, widening budget deficits, recession in industry and inflation 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% through the introduction of fiscal & economic reforms including liberalization under the Prime Ministership of Shri P V Narasimha Rao.
Some of the main economic outcomes during the eighth plan period were rapid economic growth (highest annual growth rate so far – 6.8 %), high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit. A high growth rate was achieved even though the share of the public sector in total investment had declined considerably to about 34 %.
Ninth Plan (1997- 2002) Target Growth:
The Plan prepared under United Front Government focused on “Growth With Social Justice & Equality “Ninth Plan aimed to depend predominantly on the private sector – Indian as well as foreign (FDI) & State was envisaged to increasingly play the role of facilitator & involve itself with social sector viz education, health etc. and infrastructure where private sector participation was likely to be limited. It assigned priority to agriculture & rural development intending to generate adequate productive employment and eradicate poverty
(2002 - 2007)
Recognizing that economic growth can’t be the only objective of a national plan, Tenth Plan had set ‘monitorable targets’ for few key indicators (11) of development besides the 8 % growth target. The targets included a reduction in gender gaps in literacy and wage rate, reduction in Infant & maternal mortality rates, improvement in literacy, access to potable drinking water cleaning of major polluted rivers, etc. Governance was considered as a factor of development & agriculture was declared as the prime moving force of the economy. States role in planning was to be increased with greater involvement of Panchayati Raj Institutions. State-wise break up of targets for growth and social development sought to achieve balanced development of all states.
(2007 - 2012)
Actual Growth: 8%
The eleventh Plan was aimed “Towards Faster & More Inclusive Growth “after UPA rode back to power on the plank of helping Aam Aadmi (common man).
India had emerged as one of the fastest-growing economies by the end of the Tenth Plan. The savings and investment rates had increased, the industrial sector had responded well to face competition in the global economy and foreign investors were keen to invest in India. But the growth was not perceived as sufficiently inclusive for many groups, especially SCs, STs & minorities as borne out by data on several dimensions like poverty, malnutrition, mortality, current daily employment etc.
Tricks to Remember all Five-year Plans
Here are tricks to remember all five-year plans:
1) First five-year plan (1951 -56)
Trick to Remember: SIPCOT
S - SOCIAL SERVICE
I - INDUSTRY
P - POWER
Co - Communication
T - Transport
2) Second five-year plan (1956 -61)
Trick to Remember: MADRAS
M - Mahalanobis Model
A - Atomic Energy Commission
D - Durgapur steel company, Tata Inst of Fundamental Research
R - Rourkela Steel Company, Rapid Industrialisation
A - Agriculture
S - Socialistic Pattern of Society
3) Third five-year plan (1961-66)
Trick to Remember: SAD
S - Self Reliance
A - Agriculture
D - Development of Industry
5) Fifth five-year plan (1974-79)
Trick to Remember: PSTM (Persons Studied in Tamil Medium)
P - Poverty Eradication
S - Self-reliance
T - Twenty Point Programme
M - Minimum Need Programme
6) Sixth five year Plan (1980-85)
Trick to Remember: MAIL
M - Management
A - Agriculture production
I - Industry production
L - Local Development Schemes
7) Seventh five-year plan (1985-90)
Trick to Remember: EFGH (the alphabets)
E - Employment generation
F - Foodgrain production was doubled
G - Jawahar Rozgar Yojana (1989)
H - Hindu rate of Growth
8) Eighth five-year plan (1992-97)
Trick to Remember: LPG
L - Liberalisation
P - Privatisation
G - Globalisation
9) Ninth five-year plan (1997-2002)
Trick to Remember: ESPN
E - Employment for Women, SC's and ST's
S - Seven Basic minimum service
P - Panchayat Raj Institutions, Primary Education, Public Distribution System
N - Nutrition Security
11) Eleventh five-year plan (2007 -2012)
Trick to Remember: TEACHERS
T - Telecommunications (2G)
E - Electricity, Environment Science
A - Anemia
C - Clean water
H - Health education
E - Environment Science
R - Rapid growth
S - Skill Development