The Indian economy has been developing from the starting stage of Five-year plans or Assessment plans in India. These five-year plans of India target different sectors in each plan and tries to improve their sector growth to the targeted growth rate level. This five-year plans of India we achieved up to 8% of GDP growth rate and we are continuing to improve India’s GDP to 9%.
In this post am giving notes on “Five Year plans of India”. In this, we discuss the different five-year plans of India and their objectives, growth rates and their improvement in the development of the Indian economy.
Important Notes from Five Year Plan:
1. First Five Year plan (1951-56):
- This plan was based on the Harrod-Domar Plan Model.
- The community development program was launched in 1952.
- This plan focuses on the agriculture sector, price stability in the Indian economy, power, and transportation systems.
- This Plane became successful in developing agriculture, power and transportation sectors with a growth of 3.6% which is more than the targeted growth.
2. Second Five Year plan (1956-61):
- This Plan is also called as P.C.Mahalanobis Plan is named after a well-known economist in the world.
- It mainly focused on rapid industrialization growth in India.
- During this Plan, prices in India are increased by 30% against all industrial goods.
- Advocated for huge imports through foreign loans.
- This plan got 4.1% of the growth rate on the Indian economy.
3. Third Five-year plan (1961-66):
- This plan was also called as ” Gadgil Yojana ” Plan
- To make India a “self-reliant” and “self-generating” economy.
- This plan becomes Complete failure in reaching the targets due to sudden events between- Chinese aggression(1962), Indo-Pak war (1965), severe drought (1965-66) due to this incident this plan didn’t achieve its 5.6% growth rate on the Indian economy.
4. Three annual plans (1966-69):
- The duration from 1966-69 is also called as “Plan Holiday for 3 Years”
- The main focus of this plan is to Recover economic growth from previous failed 3rd Plan due to the Indo-Pak war.
- During these plans, a whole new agricultural strategy was implemented.
- It involves the wide-spread distribution of high-yielding varieties of seeds, extent use of fertilizers, exploitation of irrigation and soil conservation.
5. Fourth Five Year plan (1969-74):
- The main objective of the Fourth Five-year plan is to achieve growth in agricultural sector and also to enable improvement in other sectors’ growth.
- The main slogan of the Fourth five-year plan is “ Garibi hatao” which is stated by Indira Gandhi during the 1971 elections.
- Although the First 2 years of Fourth Five year plans gave record production results last 3 years are disappointed in the agriculture sector because of bad monsoon weather.
- The fourth five-year plan target was to achieve 5.7% of growth but it didn’t reach the mark. Fourth five-year plans achieved only 3.30% of growth.
6. Fifth Five Year plan (1974-79):
- Fifth Five-year plan is prepared by D.D.Dhar.
- The main objective of the Fifth Five Year Plan is to increase Growth rate in agriculture sector, next preference Industrial sector, and Mines
- Removal of poverty (Garibi Hatao)
- Attainment of self-reliance
- Promotion of high rate of growth, better distribution of income
- This plan is terminated in 1978, which should be continued until 1979 because the Janata party government rises to power in central.
7.Rolling plan (1978-80):
- There were 2 sixth plans in Rolling Five Year Plans.
- Janata government started a Five-year plan duration from 1978-83 but the Janata Govt lasted for 2 years in Power. So this plan was terminated in 1980.
- Congress Government returned to power in Central elections in 1980 and launched a different Five-year plan in 1980.
8. Sixth Five Year plan (1980-85):
- The main objective of the Sixth five-year plan is to increase national income.
- Modernization of technology and ensuring a continuous decrease in poverty and unemployment
- Population control through family planning.
- It’s targeted Growth is 5.2% but it achieved 5.66% which is more than targeted growth.
9. Seventh Five Year plan (1985-90):
- The main objective of the Seventh Five year plan is to gain Rapid growth in food grains production
- Increased employment opportunities and productivity
- Seventh five-year plan targeted growth is 5% but it achieved almost 6.01%. This plan is very successful in improving agricultural and industrial growth.
10. Eighth Five Year plan (1992-97):
- The main objective of Eighth Five Year plan is to focus on Importance for HRD
- This plan focus on Priority to education, health cleanliness, and nutrition.
- Liberalization, privatization, and globalization (LPG) were introduced by Manmohan Singh in this plan. This plan is called “Manmohan plan”
- Development of infrastructure.
- It’s targeted Growth rate is 5.6% but it was so successful gained an almost 6.8% growth rate.
11. Ninth Five Year plan (1997-2002):
- The main objective of the Ninth five-year plan is to give Qualify of living and Growth with social justice and equity
- The ninth five-year plan is launched on the 50th Independence day of India.
- Agriculture and rural development
- Ensuring food and nutritional security for all.
- Ensuring environmental sustainability.
- It’s targeted growth rate is 6.5% but it achieved only 5.35% of growth rate.
12.Tenth Five Year plans (2002-07):
- The main objective of the tenth five-year plan is to achieve a GDP growth rate of 8%.
- Reduction of poverty ratio by 5% in 2007.
- High-quality employment to the addition to the labor force.
- Universal access to primary education by 2007.
- The agriculture sector declared as the prime moving force of the economy.
- To improve literacy percentage to 72% in plan period and to improve 80% literacy rate in the future up to 2012.
- It focuses on gender gap reduction by 50% under the plan period.
- The tenth five-year plan achieved 7.2% of targeted growth.
13. Eleventh Five Year plans (2007-2012):
- The eleventh Five-year plan is prepared by C.Rangarajan.
- The main objective of Eleventh five year plan is to achieve ” Faster, More inclusive growth”
- The main target of the Eleventh five year plan is to increase GDP growth from 8% to 10% and also to achieve improvement by 4% every year in the agriculture sector.
- The eleventh five-year plan created an Extension of 70 million employment opportunities using MGNREGA.
- It reduced the school dropout percentage to 20% in 2012. which is 52.2% in 2003.
- It also increased forest development and tree areas to gain growth in environmental sustainability.
- This plan achieved WHO standards of Air pollution in all cities in India by the year of 2011-12
14.Twelfth Five Year plan (2012-17):
- The main objective of the Twelfth five-year plan is to achieve ” Faster, More inclusive and sustainable growth”
- The main Goal of twelfth five-year plan is to reduce poverty by 2% annually throughout the plan period.
- GDP growth rate target is set to 9%, agriculture growth rate at 4% and manufacturing growth rate at 10%
- Provide electricity to all villages by the end of the plan
- Connect road facility to all villages by the end of the plan
- Increase 30000 MW of renewal energy capacity by the end of the plan.
- Increasing Banking services to 90% on every Indian household.
- All subsidies from the central government and other pensions are directly transferred to their banks by Aadhar based direct cash transfer system.