TNPSC Current Affairs: Five Year Plans
The Complete coverage of Five Year Plans for TNPSC and Other Competitive Exams.
Five-Year Plans of India
The Planning Commission was set up in March, 1950 by a Resolution of the Government of India. The economy of India is based on planning through its five-year plans, developed, executed and monitored by the Planning Commission .
With the Prime Minister as the ex-official Chairman, the commission has a nominated Deputy Chairman, who has rank of a Cabinet minister. Montek Singh Ahluvaliya is currently the Deputy Chairman of the Commission.
The Eleventh Plan completed its term in March 2012 and Twelfth Plan (2012-2017) is currently underway.
Planning Commission now NITI Aayog
- The National Institution for Transforming India Aayog (NITI Aayog) is a Government of India policy Think-Tank established by Prime Minister Narendra Modi to replace the Planning Commission.
- The stated aim for NITI Aayog's creation is to Foster Involvement and Participation in the Economic Policy-Making process by the State Governments of India.
- It has adopted a 'Bottom-Up' Approach in Planning which is a remarkable contrast to the Planning Commission's tradition of 'Top-Down' Decision-Making.
Time Line of Five Year Plans of India
- First Plan - (1951–1956)
- Second Plan - (1956–1961)
- Third Plan - (1961–1966)
- Fourth Plan - (1969–1974)
- Fifth Plan - (1974–1979)
- Rolling Plan - (1978–1980)
- Sixth Plan - (1980–1985)
- Seventh Plan - (1985–1990)
- Annual Plans - (1990–1992)
- Eighth Plan - (1992–1997)
- Ninth Plan - (1997–2002)
- Tenth Plan - (2002–2007)
- Eleventh Plan - (2007–2012)
- Twelfth Plan - (2012–2017)
The Five Year Plans with Detailed Information:
The First Five Year Plan (1951-1956)
- The First Plan was based on Harrod-Domar Model.
- Community Development Program was launched in 1952.
- Emphasized on Agriculture, Price Stability, Power & Transport.
- It was more than a success, because of Good Harvests in the last two years.
The Second Five Year Plan (1956–1961)
- The Second Five Year Plan also called Mahalanobis Plan after its Chief Architect.
- Its objective was Rapid Industrialization.
- Advocated huge imports which led to emptying of funds leading to foreign loans.
- It shifted basic emphasis from agriculture to industry far too soon.
- During this plan, price level increased by 30%, against a decline of 13% during the First Plan.
- The Third Five Year Plan, at its conception time, 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.
- Also, it was realized from the experience of first two plans that agriculture should be given the top priority to suffice the requirement of export and industry.
- Complete failure due to unforeseen misfortunes, viz. Chinese aggression (1962), Indo-Pak war (1965), Severest drought in 100 years (1965 − 66).
- The 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 involving wide-spread distribution of High-Yielding Varieties of seeds, the extensive use of fertilizers, exploitation of irrigation potential and soil conservation was put into action to tide-over the crisis in agricultural production.
- During the Annual Plans, the economy basically absorbed the shocks given during the Third Plan, making way for a planned growth.
The Fourth Five Year Plan - (1969–1974)
- The Fourth Five Year Plan, the main emphasis on Agriculture’s Growth rate so that a chain reaction can start.
- 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.
- The fifth plan prepared and launched by D D Dhar proposed to achieve two main objectives viz, ‘Removal of Poverty’ (Garibi Hatao) and ‘Attainment of Self Reliance’ through promotion of high rate of growth.
- Promotion of high rate of growth, better distribution of income and significant growth in the domestic rate of savings were seen as key instruments.
- The plan was terminated in 1978 (instead of 1979) when Janta Government Came to power.
The Rolling Plan - (1978 − 80)
- There were 02 Sixth Plans. First one is by Janta Government (1978-1983) which was in operation for only 02 years.
- The Second is by the Congress Government when it returned to power in 1980.
The Sixth Five Year Plan (1980-85)
- This five year plan focus on Increase in National income, modernization of technology, ensuring continuous decrease in poverty and unemployment, population control through family planning, etc.
- This five year plan focus on rapid Growth in Food-Grains production, Increased Employment opportunities and productivity within the framework of basic tenants of planning.
- The plan was very successful, the economy recorded 6% growth rate against the targeted 5%.
- The Eighth five Year Plan was postponed by two years because of political upheavals at the Centre and it was launched after a worsening Balance of Payment position and inflation during 1990-91.
- The plan undertook various drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6%.
- Some of the main economic performances 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.
- The Ninth Five Year Plan, It was developed in the context of four important dimensions of Quality of life, Generation of Productive Employment, Regional Balance and Self-Reliance.
- Tenth Plan five year to achieve the growth rate of GDP@8%
- Reduction of poverty ratio to 20% by 2007 and to 10% by 2012
- Reduction in decadal rate of population growth between 2001 and 2011 to 16.2%
- 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
- All villages to have sustained access to potable Drinking Water by 2012
- Cleaning of all Major Polluted Rivers by 2007 and other notified stretches by 2012
- Accelerate GDP growth from 8% to 10%. Increase agricultural GDP growth rate to 4% per year.
- Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17
- Ensure that at least 33% of the direct and indirect beneficiaries of all government schemes are women and girl children
- 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
- Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012
- Attain WHO standards of air quality in all major cities by 2011-12.
- Treat all urban waste water by 2011-12 to clean river waters.
- The Twelvth Five-Year Plan of the Government of India has decided for the growth rate at 8.2% but the National Development Council (NDC) on 27 Dec 2012 approved 8% growth rate for 12th five-year plan.
- The Deputy Chairman of the Planning Commission Montek Singh Ahluwalia has said that achieving an average growth rate of 9 % in the next five years is not possible.
- The Final growth target has been set at 8% by the endorsement of plan at the National Development Council meeting held in New Delhi.