six decades of planning

8/3/2019 Six Decades of Planning

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SIX DECADES

POST

INDEPENDENCE


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INDIAS SITUATION POST INDEPENDENCE

Partition

Economic Backwardness

Territorial Disputes


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FORMATION OFTHE PLANNING

COMMISSION

The Planning Commission was set up in March

1950 to promote a rapid rise in the standard of

living of the people by utilizing the resources of

the country, increasing production and offering

employment opportunities to all.

The Planning Commission has the responsibility

for formulating plans as to how the resources canbe used in the most effective way.


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FUNCTIONS OFTHE PLANNING COMMISSION

Assessment of resources of the countryFormulation ofFive-Year Plans for effective use of these

resources

Determination of priorities, and allocation of resources

for the Plans

Determination of requisite machinery for successful

implementation of the Plans

Periodical appraisal of the progress of the PlanTo formulate plans for the most effective and balanced

utilization of country's resources.

To indicate the factors which are hampering economic

development.


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1STFIVE YEAR PLAN(1951-1956)

It was presented by the then Prime Minister Jawaharlal

Nehru in the Indian parliament on 8th December,1951

Objectives

Community and agriculture developmentEnergy and irrigation

Communications and transport

Industry

Land rehabilitation

Social services

Target GDP growth of 2.1 per year.


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ALLOCATION OFTHE PLAN BUDJET


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ACHIEVEMENTS

3 GDP growth achieved @ 3.6% per year

3 Evolution of good irrigation system

3 There was an improvement in roads, civil

aviation,railways,manufacture of fertilizers,electrical

equipments.

3 Bhakra Dam and Hirakud Dam.

3 Five Indian Institutes of Technology(IITs) were startedas major technical institutions. University Grant

Commission was set up to take care of funding and take

measures to strengthen the higher education in the

country.


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2ND FIVE YEAR PLAN(1956-1961)

Objectives

Rapid Industrialisation

25% increase in National Income

Increase in employment opportunities


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ACHIEVEMENTS

5 steel plants

Hydro-electric power project

Production of coal increased

Increase in the number of railway lines

TheAtomic Energy Commission was formed in 1957

with Homi J. Bhabha as the first chairman.

In 1957 a talent search and scholarship program wasbegun to find talented young students to train for work

in nuclear power.


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SOME SHORTCOMINGS

Mahalanobis Model

Unfavorable monsoon in 1957-58 and 1959-60

impacted agricultural production.

The Suez crisis blocked International Trading

increasing commodity prices.


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3RD FIVE YEAR PLAN(1961-1966)

Objectives

Increased emphasis on agriculture

Power sector given importanceIncrease in the National Income @ 5% per

year.

Promotion of economic development inbackward areas.

Prevent monopolies.


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ACHIEVEMENTS

Green Revolution

Setting up of Panchayat & Zila Parishads

Emphasized on soil conservation, irrigation,

afforestation, and dry farming.

Building of fertilizer and cement plants.

Development of social services and education in India.

Improved the quality of life ofIndian citizens, andplayed a crucial role in the growth and development of

the country.


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PLAN HOLIDAY (1966-69)

ThreeAnnual Plans (1966-69) Plan holiday for 3years

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 involvingwide-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 theAnnual Plans, the economy basically absorbed the

shocks given during the Third Plan, making way for a planned

growth.


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FOURTH FIVE YEAR PLAN

1969-1974


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SITUATION

India had to reform and restructure its expenditure agenda,

following the attack on India in the year 1962 and for the second

time in the year 1965

Due to recession, famine and drought, India did not pay much

heed to long term goals. It started taking measures to overcome

the crisis.

The need for foreign reserves was felt


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OBJECTIVES

Economic self-reliance

Reduction of foreign-aid

Intensive irrigated agriculture

Promotion of industrial development

The target of over all growth rate was 5.7% per annum


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ACHIEVEMENTS

The achievements of the fourth plan were below targets

Agriculture growth was just at 2.8%

Green revolution did not perform as expected

Industry too grew at 3.9%

The Indira Gandhi government nationalized 14 majorIndian banks

Actual growth rate achieved was 3.4%


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FIFTH FIVE YEAR PLAN

1974-1979


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SITUATION

The world economy was in a troublesome state when the fifth five

year plan was chalked out

Prices in the energy and food sector skyrocketed and as a

consequence inflation became inevitable


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OBJECTIVES

The fifth plan proposed to achieve two main objectives viz,

'removal of poverty' (Garibi Hatao) and 'attainment of self

reliance', through promotion of high rate of growth, better

distribution of income and a very significant growth in the

domestic rate of savings

Target of growth rate in GDP was 5.5% per annum


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OBJECTIVES

to reduce social, regional, and economic disparities for developmentalplanning

to enhance agricultural productivity

to initiate land reforms

to check rural and urban unemployment to emphasize on household industries

to encourage self-employment through a well integrated local planning

to encourage import substitution in areas like industrial machinery,chemicals, paper, iron and steel and non-ferrous metals

to capture the markets with locational advantages

to initiate appropriate use of fiscal, credit and production supportpolicies in the cottage industry sector

to develop labor intensive technological improvements


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ACHIEVEMENTS

The greatest achievement was an unexpected rise of foreign

exchange reserves. In 1974-75, Indian exports crossed 18%. For-

ex reserves reached up to Rs. 4,000 crs by March 1978-79

Food-grain production was above 118 million tons due to the

improvement of infrastructural facilities

In the 4th year of this plan, the growth rate was as high as 8.6 %

The actual average annual growth rate was 3.9% per annum


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ROLLING PLAN (1978- 80)

The plan was terminated in 1978 (instead of 1979) when Janta

Govt. came to power

There were 2 Sixth Plans. One by Janta Govt. (for 1978-83) which

was in operation for 2 years only and the other by the Congress

Govt. when it returned to power in 1980.


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SIXTH FIVE YEAR PLAN

1980- 1985


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SITUATION

At the onset of the Sixth Five Year Plan India, Rajiv Gandhi, the

then prime minister prioritized speedy industrial development,

with special emphasis on the information technology sector

From the Fifth Five Year Plan, the nation had been able to achieve

self sufficiency in food.

Moreover, the industrial sector was also diversified and science

and technology also made a significant advance

One of the major hindrances in the way of further development in

this period was the boom in the Indian population


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OBJECTIVES Target growth of GDP was 5.3% per annum

Increasing industrialization

to increase the growth rate of the economy

to concentrate on the promotion of efficient use of resources

to control poverty and unemployment to initiate modernization for achieving economic and

technological self-reliance

to introduce Minimum Needs Program for the poor and needy

with an emphasis to reduce the discrepancies in income and

wealth accumulation

to initiate Family Planning Programs in order to check the

growing population trends

to protect and improve ecological and environmental assets

to promote the education at all levels


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ACHIEVEMENTS

AchievedAverage annual growth rate was 5.7% per annum

The transport and communication system improved under this

Plan

TheIndian national highway system was introduced for the first

time and many roads were widened to accommodate the

increasing traffic

Tourism also expanded

The sixth plan also marked the beginning of economic

liberalization resulting in growth in standard of living of people

Family planning also was expanded in order to prevent

overpopulation


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SEVENTH FIVE YEAR PLAN(1985-1989)

Sixth Five year plan laid the foundation

Sixth Five year plan fruitful in terms of

productivity

Rate of inflation in control

This plan strove to achieve socialism &

expansion of energy


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OBJECTIVES

Anti-poverty program

Improved facilities for education to girls

The government undertook to increase productivity

Communications

Emergence of informatics, and hooking up oftelecommunications with computers

Transport inland waterways, product pipelines, civil aviation,

coastal shipping


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OBJECTIVES

Social Justice

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

GDP of 5.3%


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ACHIEVEMETS

A growth in labor force of 39 million people

Employment was expected to grow at the rate

of 4 percent per year

Projections for Balance of Payments: Export -

Rs.60.7 thousand crore, Imports - (-) 95.4

thousand crore, Trade Balance- (-) Rs.34.7

thousand crore

GDP OF 5.7%


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PROBLEMS

1989-91 was a period of political instability in

India and hence no five year plan was

implemented

Crisis in FOREX reserves(Left with only 1 $b

reserves)

Reforms in socialistic economy

Free market economy- Privatization &

Liberalizaton


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EIGTH FIVE YEAR PLAN(1992-1997)


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OBJECTIVES

To prioritize the specific sectors which requires immediateinvestment

To generate full scale employment

To promote social welfare measures like improved

healthcare, sanitation, communication and provision forextensive education facilities at all levels

To check the increasing population growth by creating massawareness programs

To encourage growth and diversification of agriculture

To achieve self-reliance in food and produce surpluses forincrease in exports

To strengthen the infrastructural facilities like energy, power,irrigation


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OBJECTIVES

To increase the technical capacities for developed scienceand technology

To modernize Indian economy and build up a competitiveefficiency in order to participate in the global developments

To place greater emphasis on role of private initiative in thedevelopment of the industrial sector

To involve the public sector to focus on only strategic, high-tech and essential infrastructural developments

To create opportunities for the general people to get involved

in various developmental activities by building andstrengthening mass institutions

Attain a GDP of 6.2%


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ACHIEVEMENTS

GDP growth of 6.7% was achieved

Modernization of industries

Liberalization , privatization & globalization Rise in Employment Level

Poverty, which still afflicted 55%of the

po

pulation in 1973-74, fell t

o39%

The literacy rate rose from52% to 65%


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NINTH FIVE YEAR PLAN(1997-2002)


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OBJECTIVES

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


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OBJECTIVES

To provide for the basic infrastructural facilitieslike education for all, safe drinking water, primaryhealth care, transport, energy

To check the growing population increase

To encourage social issues like womenempowerment, conservation of certain benefits forthe Special Groups of the society

To create a liberal market for increase in privateinvestments

To attain GDP growth of 6.5%


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ACHIEVEMENTS

GDP annual growth achieved 5.35%

Real investment and the savings rates continued to rise modestly.

Substantial liberalisation of central industrial licensing andcontrols.

Reduction in tax rates, the far-reaching liberalization in the tradesector.

Reduction in tariff rates changed the business environment andscope for private investment.

Quantitative restrictions were removed at the end of the 9th Planperiod.


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10TH FIVE YEAR PLAN(2002-2007)

Objectives Reduction of poverty ratio by 5 percentage points by

2007;

Providing high-quality employment

All children in

India in school by 2003; all children tocomplete 5 years of schooling by 2007;

Reduction in gender gaps in literacy rates 2007;

Increase in Literacy Rates to 75 per cent within theTenth Plan period (2002 to 2007);


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Objectives Continued Increase in forest and tree cover to 25 per cent by

2007 and 33 per cent by 2012;

All villages to have sustained access to potabledrinking water within the Plan period;

Cleaning of all major polluted rivers by 2007 andother notified stretches by 2012;

Target GDP is 8%


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Achievements Achieved GDP 7.66%

The overall growth in agricultural sector was 2.5%

Growth of manufacturing sector from 3.3% to 8.6%

Service sector was fastest growing sector at 15.3%

Construction sector grew from 7.5% to 10.8%


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11 TH FIVE YEAR PLAN(2002-2007)

Objectives Income & Poverty 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 Increase agricultural GDP growth rate to 4% per year to

ensure a broader spread of benefits

Create 70 million new work opportunities.

Reduce educated unemployment to below 5%.


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Education

Reduce dropout rates of children from elementary school

from 52.2% in 2003-04 to 20% by 2011-12

Develop minimum standards of educational attainment in

elementary school, and by regular testing monitor

effectiveness of education to ensure quality

I

ncrease literacy rate for persons of age 7 years or aboveto 85%

Lower gender gap in literacy to 10 percentage points


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Health Reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000

live births

Provide clean drinking water for all by 2009 and ensure that there are noslip-backs

Reduce malnutrition among children of age group 0-3 to half its presentlevel

Reduce anaemia among women and girls by 50% by the end of the plan

Women and Children 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 percent of the direct and indirect beneficiaries of all

government schemes are women and girl children

Ensure that all children enjoy a safe childhood, without any compulsion towork


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Infrastructure

Ensure electricity connection to all villages and BPLhouseholds by 2009 and round-the-clock power.

Ensure all-weather road connection to all habitation with

population 1000 and above (500 in hilly and tribal areas) by2009, and ensure coverage of all significant habitation by 2015

Connect every village by telephone by November 2007 andprovide broadband connectivity to all villages by 2012

Environment Increase forest and tree cover by 5 percentage points.

Attain WHO standards of air quality in all major cities by2011-12.

Treat all urban waste water by 2011-12 to clean river waters.


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3rd plan

Target GDP 5.6% Achieved GDP 2.84%

2nd plan


1st plan



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6th plan :


5th plan


4th plan



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9th plan


8th plan


7th plan



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11th plan

Target GDP 10% ????

10th plan

Target GDP 8%Achieved GDP

7.8%

1950s 1960s 1970s 1980s 1991 1991/ 1997/ 2003/ 2007


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1950s 1960s 1970s 1980s 1991 1991/

92 to

1996/

97

1997/

98 to

2002/

03

2003/

04 to

2006/

07

2007

2008

1) RealGDP

Growth

3.6 4.0 2.9 5.6 5.3 5.7 5.2 8.7 8.7

1.1)Agr

iculture

2.7 2.5 1.3 4.4 4.0 3.7 0.9 4.9 2.6

1.2)Ind

ustry

5.8 6.2 4.4 6.4 5.7 7.0 4.1 8.3 8.6

1.3)

Manuf

acturin

g

5.8 5.9 4.3 5.8 4.8 7.5 3.9 9.1 9.4

1.4)Services

4.2 5.2 4.0 6.3 5.9 6.4 7.8 10.2 10.6

2) ICOR 3.5 4.3 3.6 6.6 4.6 4.0 4.6 3.6 NA

3) WPI

Inflatio

n(avg)

1.2 6.4 9.0 8.0 10.3 9.6 4.6 5.5 NA


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Country 1960s 1970s 1980s 1990s 2000-2006

Brazil 5.9 8.5 3.0 1.7 3.1

China 3.0 7.4 9.8 10.0 9.5

India 4.0 2.9 5.6 5.7 7.0

Indonesia 3.7 7.8 6.4 4.8 4.9

Korea 8.3 8.3 7.7 6.3 5.2

Mexico 6.8 6.4 2.3 3.4 2.9

Philippines 5.1 5.8 2.0 2.8 4.8

S.Africa 6.1 3.3 2.2 1.4 4.1

Thailand 7.8 7.5 7.3 5.3 5.0

REALGDPGROWTH

Source World Development Indicators,World Bank


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Country 1960s 1970s 1980s 1990s 2000-2006

Brazil 2.6 2.1 5.5 9.9 5.1

China 7.9 4.8 3.8 4.0 4.3

India 4.3 6.6 3.6 4.1 4.0

Indonesia 2.4 2.3 4.6 6.9 4.7

Korea 1.5 2.5 3.6 5.7 5.7

Mexico 3.8 4.1 8.8 6.0 7.6

Philippines 3.9 4.0 10.7 8.2 4.3

S.Africa 2.6 6.2 8.0 10.7 4.2

Thailand 3.4 4.2 4.1 6.9 4.5

ICOR

Source World Development Indicators,World Bank


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DEMOGRAPHIC INDICATORS

1996 2001 2006 2011

Population

(million) 934.22 1012.39 1094.13 1178.89

Urban

Population(%)

27.23 28.77 30.35 31.99

Sex Ratio(

males for

100

females)

107.9 107.2 106.6 106.0


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PROJECTEDAGESTRUCTURE (IN

MILLION)

1997 2002 2007 2012

Under 15 353.64 245.11 334.80 337.93

15-59 532.60 610.55 692.64 758.61

60+ 63.64 71.94 84.01 98.50

Dependency Ratio:

Young

0.66 0.57 0.48 0.45

Old 0.12 0.12 0.12 0.13

Total 0.78 0.69 0.60 0.58


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DISTRIBUTION OF LABOUR FORCE

Population Labour Force

millions % Growth millions Growth%

1978 637.6 255.8

1983 718.2 2.16 286.6 2.07

1994 895.0 2.10 368.5 2.39

1997 951.2 1.85 397.2 2.27

2002 1028.9 1.57 449.6 2.48

2007 1112.9 1.57 507.9 2.44

2012 1196.4 1.45 562.9 2.06


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PROJECTION OF NATIONALPOVERTY

RATIO

1996-97 2001-02 2006-07 2011-12

Rural 30.55 18.61 9.64 4.31

Urban 25.58 16.46 9.28 4.49

Total 29.18 17.98 9.53 4.37


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LITERACY RATES

18.33%

28.90%34.45%

43.57%

52.21%

65.38%

79.90%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

1951 1961 1971 1981 1991 2001 2009

percentage of literates

percentage of literates


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INDIA : VISION 2020

Agriculture and food processing -- with a target of

doubling the present production of food and agricultural

products by 2020. Agro food processing industry would

lead to the prosperity of rural people, food security andspeed up the economic growth;

Infrastructure with reliable and quality electric

power including solar farming for all parts of the

country, providing urban amenities in rural areas andinterlinking of rivers;

Education and Healthcare: To provide social security

and eradication of illiteracy and health for all;


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Information and Communication Technology:This is one of our core competencies and wealthgenerator. ICT can be used for tele-education, tele-

medicine and e-governance to promote education inremote areas, healthcare and also transparency in theadministration; and

Critical technologies and strategic industries

would witness the growth in nuclear technology,space technology and defence technology


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six decades of planning

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