nep_five year plans

8/4/2019 NEP_Five Year Plans

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PLANNING COMMISSION

&

FIVE YEAR PLANS


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FIRST FIVE YEAR PLAN (1951-56)

Prime Minister Jawaharlal Nehru

presented the first five-year plan toParliament on December 8, 1952

Its total budget of 206.8 billion rupees($23.6 billion in 1950 dollars exchange rate)

was divided between seven areas: Agriculture and Community Development (17.4%)

Irrigation and Power (27.2%)

Transport and Communications (24%)

Industry (8.4%)

Social Services (16.64%)

Rehabilitation (4.1%)

Miscellaneous (2.5%)


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MAJOR ACHIEVEMENTS OF FIRST FIVE YEAR PLAN (1951-56)

Monsoons cooperated, and harvestswere good during the plan period, boostingexchange reserves

Many irrigation projects like BhakraNangal, Hirakud & Mettur Dam were set-up

Infant mortality was brought down whichlead to rise in population

5 IITs & UGC was set up

There was a proposal to set up 5 steelplants


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SECOND FIVE YEAR PLAN (1956-61)

Focused on Industry

Plan focused on Mahalnobis Model,which attempted to determine the optimalallocation of investment between productivesectors in order to maximize long-runeconomic growth

The dams that were started in the first 5Year Plan were finished in this plan andirrigation canals started feeding hundreds ofthousands of hectares of newly irrigatedland.

Hydroelectric power projects were startedin the 2nd Five Year Plan. Notable one beingMahatma Gandhi Hydro Electric project atSharavati and Koyna Dam in Maharashtra.


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MAJOR HIGHLIGHTS OF SECOND FIVE YEAR PLAN (1956-61)

Five steel mills at Bhilai, Durgapur and

Jamshedpur were also started.

Atomic Energy Commission was formed in 1957with Homi J Bhabha as the head of the AEC. Nehrutook Nuclear power development under his ownwings, and supported Bhabha. Tata Institute ofFundamental Research was started during this planperiod.

War with China was a rude awakening about thelack of defence readiness. Peace loving Nehru wasdealt a blow by Mao Tse Tung and his Hindi CheeniBhai-bhai slogan was found to be shallow.

Monsoons failed during these years andpopulation explosion continued unabated.

Coal production was increased.

More railway lines were added in the North-East .


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THIRD FIVE YEAR PLAN (1961-66)

The planned stress was on agriculture, but due

to the Sino-Indian War of 1962 focus shiftedtowards defence and development. The warexposed the weakness of the Indian Economy.

In 1965-66, the Green Revolution was started

for the advancement of Indian agriculture. Thewars lead to rising prices in India. The priority wasthus shifted to price stabilization.

India continued on with dam building. Hundredsof small and large dams were built during this five

year plan.

Many cement and fertilizer plants were alsobuilt.

Punjab started producing an abundance of

wheat.


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THIRD FIVE YEAR PLAN (1961-66)

Many primary schools were started in ruralareas .

In an effort to bringing democracy to the grassroots, Panchayat elections were started

The nation was reformulated under linguistic

states in the first 5 Year Plan only. Now thesestates were given more and more developmentresponsibilities.

State electricity Boards were formed. Statesecondary education Boards came into existence.

States were made responsible for college level andhigh school level education. State Roadtransportation corporations were formed and localroad building became state responsibility.


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FOURTH FIVE YEAR PLAN (1969-74)

During the early period of the plan, severaldroughts affected the economy.

She tried to control the capital market bynationalizing six of Indias major banks.

Indian Currency was devalued due to rising inflation.

Then an annual plan was introduced to resolveimmediate problems, but still unemployement andpoverty were major problems so this remained the

focus of the plan .

Another problem rose in 1973 in the form of thehike in fuel prices but the focus remainedunchanged.

Mrs Indira Gandhi was the Prime Minister of India.World situation was not very peaceful during thistime with Vietnam War underway in Southeast Asia.


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FOURTH FIVE YEAR PLAN (1969-74)

The situation in East Pakistan (now Bangladesh)was also getting worse. During 1971 more than tenmillion illegal Bangladeshi immigrants poured into

India as refugees running away from the murderousWest Pakistani Army General Yahya Khan who wasthe military dictator of Pakistan then unleashed arain of terror in East Pakistan with his 93,000 army.

The refugee crisis thus highjacked India's fourth

five year plan. India sent 300,000 troops surroundingEast Pakistan and liberating it in fifteen days. Thenew nation of Bangladesh was born in December1971. Pakistan's 93000 troops surrendered to theIndia army, which were later released to Pakistanafter the Simla Agreement of 1972.

Funds earmarked for the industrial developmenthad to be used for the war effort.

India also tested (underground) a "peacefulatomic weapon in 1974 as a reply to President Nixonscrude gun boat diplomacy of bringing the U.S. 7thfleet into the Bay of Bengal as a threat to the Indian

army operation in Bangladesh (the East Pakistan).


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FIFTH FIVE YEAR PLAN (1974-79)

Stress was laid on employment, poverty

removal, and justice .

The plan also focused on self reliance withrespect to agricultural production and defence .

During the fourth and fifth plans, stress was onreducing poverty ; but it was realized that povertystill plagued the nation.

Hence, in 1978 the newly elected MorarjiDesai government rejected the plan.

The Janatagovernment rejected the NehruvianModel of economy, laying stress on village andcottage industries and natural mobilization ofresources, to increase employment.


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SIXTH FIVE YEAR PLAN (1980-85)

When Rajiv Gandhi was elected as the primeminister, the young prime minister wanted India to

make rapid industrial development. He wantedInformation Technology to be used for the benefits ofthe masses of India. However computer phobia wasso prevalent in the labor leaders of communistparties that he had to thread very slowly into thisavenue.

Some concessions were given to the industriesto experiment with computerization, and was hookedon computers ever since.

The idea of a National Highway system was

introduced for the first time and many roads werewidened to accommodate the increase in road traffic.

The idea of tourism and India as a touristdestination started taking shape. After the devaluationof the rupee it became very cheap for foreigners

visiting India and enjoying Indian luxury at a very lowcost.


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Control on food prices was eliminated and rationshops were closed. This increased the food pricesrapidly, putting pressure on the family budget. Cost ofliving was going up faster than the increase in

productivity during this plan period.

SIXTH FIVE YEAR PLAN (1980-85)

The planners and bureaucrats realized that public

funds alone would not be able to achieve the requiredrate of growth. So they started thinking of bringing theprivate sector into the planning.

Family Planning also had to be looked at seriously.The growth of population had to be curbed. China was

achieving spectacular results with its forcedsterilization method. But using force to enforce familyplanning in India won't work. However control of birthrate was made a priority. Educated people adopted tofamily planning readily. It was the rural population thatstill continued to have a high birth rate .


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SEVENTH FIVE YEAR PLAN (1985-90)

The first three years of the seventh five yearplan saw severe drought conditions, despite

which foodgrain production grew 3.2%. Policieswere aimed at rapid growth in foodgrainproduction, higher employment levels etc

Several special programmes like JawaharRozgar Yojana were introduced

Social sectors like welfare, education, health,family planning, employment etc. which wereaccorded low priority in the earlier plans, got ahigher outlay - 21.6% in the seventh plan

Industrial growth also accelerated during this

plan period to 8.7% p

Rural electrification increased significantlyand covered 81% of the villages by the end ofthe seventh plan

Actual public sector expenditure in the

seventh plan increased by 21.5% against theenvisaged outlay


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THE INTERIM PERIOD (1989-91)

The 1989-91 years, was a time of political

instability in India and hence no fiveyearplan wasimplemented.

Between 1990 and 1992, there were onlyAnnual Plans. In 1991, India faced a crisis inForeign Exchange (Forex) reserves, left with

reserves of only about $1 billion (US).

Thus, under pressure, the country took therisk of reforming the socialist economy. At thattime Dr. Manmohan Singh helped India to a

great extent.

It was the beginning of privatization andliberalization in India.


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EIGHTH FIVE YEAR PLAN (1992-97)

Modernization of industries wasa major highlight of the Eighth Plan.

Under this plan, the gradualopening of the Indian economywas undertaken to correct theburgeoning deficit and foreigndebt.

Meanwhile India became amember of the World TradeOrganization on 1 January 1995.


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NINTH FIVE YEAR PLAN (1997-2002)

The target growth rate for the ninth plan wasproposed to be 7%.

India was able to achieve the target as asound base for rapid growth had already beenlaid in the country.

The ninth plan makes serious efforts to raisethe level of agricultural and rural incomes andtarget programmes at small, medium andmarginal farmers and landless labourers

Allocation to power sector shot up to 25.4% of

the total outlay

Reliance on own resources increased to54.3%, while domestic capital receiptscontribution is slated to fall to 38.8% of totalresources. Foreign assistance continues toremain low at 6.8% of total resources.


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TENTH FIVE YEAR PLAN (2002-07)

The main objectives of the 10thFive-YearPlan are:

Reduction of poverty ratio by 5 percentage points by

2007;

Providing gainful and high-quality employment atleast to the addition to the labour force;

All children in school by 2003; all children to complete5 years of schooling by 2007;

Reduction in gender gaps in literacy and wage ratesby at least 50% by 2007;

Reduction in the decadal rate of population growthbetween 2001 and 2011 to 16.2%;

Increase in Literacy Rates to 75 per cent within theTenth Plan period (2002-3 to 2006-7);

Reduction of Infant mortality rate (IMR) to 45 per1000 live births by 2007 and to 28 by 2012;

Reduction of Maternal Mortality Ratio (MMR) to 2

per 1000 live births by 2007 and to 1 by 2012;


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Thank You

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