Economic Planning in India
Economic planning is a strategy by which limited resources are used skillfully to achieve the desired goals.
The concept of economic planning or a Five-year plan in India is derived from the former USSR or Currently Russia.
So far, India launched twelve five-year plans.
The government of India decided to stop the launching of five-year plans and it was replaced by NITI Aayog.
First Five Year Plan (1951-1956)
The first-year plan is based on the Harrod-Domar Model. The first-year plan focused on the agricultural development of the country.
The first plan achieved more than the target planned. India achieved a GDP growth rate of 3.6%.
Second Five Year Plan (1956-1961)
The second five-year plan is based on the P.C.Mahalanobis Model.
The second five-year model focused on Industrial development. The second five-year plant is also a successful model as it achieved a growth rate of 4.1%.
Third Five Year Plan (1961-1966)
The third five-year plan is called the Gadgil Yojana.
The third five-year plan’s target was to make economic independence. As a result of the Indo-China war, this plan could not achieve the growth target of 5.6%.
Plan Holiday (1966-1969)
The reason for the planned holiday was the India-Pakistan war and the failure of the third five-year plan.
During the Plan Holiday from the period 1966-1969, Annual plans were made and equal priority was given to agriculture and its allied sectors and also to the Industrial sector.
Fourth Five Year Plan (1969-1974)
The fourth Five-year plan has two objectives one is growth with stability and another one is the progressive achievement of self-reliance.
The fourth five-year plan failed and achieved growth was only 3.3% against the target of 5.7%.
Fifth Five Year Plan (1974-1979)
In the fifth five-year plan, the top priority was given to agriculture, the next one to the industries, and the mining sector.
This plan was successful, that achieved a growth of 4.8% against the target of 4.4%. The fifth five-year plan was prepared and launched by D.P.Dhar and this plan was stopped in 1978.
Rolling Plan
The rolling plan was started with an annual plan for 1978-79 and as a continuation of the terminated fifth-year plan.
Sixth Five Year Plan (1980-1985)
The basic objective of the sixth five-year plan was poverty eradication and technological self-reliance. The motto of the sixth five-year plan was ‘Garibi-Hatao’.
This plan is based on investment Yojana. The target of this was 5.2% but it achieved a 5.7% growth. It was a successful plan.
Seventh Five Year Plan (1985-1990)
The Objective of the seventh five-year plan included the establishment of a self-sufficient economy and opportunities for productive employment.
For the first time, the private sector got priority over the Public sector. The target growth was 5% and the achieved growth was 6%.
Annual Plans
The eighth five-year plan did not take place due to political instability at the centre. So two annual programmes are formed in 1990-91 & 1991-92.
Eighth Five Year Plan (1992-1997)
In the Eight five-year plan, the priority is provided to human resources development such as education, employment, and public health.
During the eighth five-year plan, the New Economic Policy of India was introduced. This plan was a success as it gave 6.8% growth and the target growth was 5.6%.
Ninth Five Year Plan (1997-2002)
The main objective of the Ninth five-year plan was “Growth with Justice and Equality”.
This plan failed to achieve the growth target of 7%. The growth achieved was only 5.6%.
Tenth Five Year Plan (2002-2007)
The objective of the tenth five-year plan was to double the per capita income of India in the next 10 years.
Also, it aimed to reduce the poverty ratio to 15% by 2012. The target growth rate was 8.0% but the achieved growth rate was only 7.2%
Eleventh Five Year Plan (2007-2012)
The tenth five-year plan theme was “Faster and More Inclusive Growth”. The targeted growth rate was 8.1% but the achieved growth rate was only 7.9%.
Twelfth Five Year Plan (2012-2017)
The theme of the Twelfth Five-year plan is “Faster, More Inclusive and Sustainable Growth“. The growth rate target set was 8%.
FAQ
1. Garibi hatao in which year plan?
Garibi Hatao is 5th Five-year plan. It was the part election campaign slogan for 1971, by Indira Gandhi.
2. Which five-year plan is known as Gadgil Yojana?
3rd Five Year Plan is called Gadgil Yojana.
