Five Year Plans of India
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India has launched a total of twelve Five Year Plans, starting with the first five-year plan in 1951. The Five Year Planning is discontinued after the 12th Five Year Plans as the the Planning Commission was dissolved in 2015.
List of five year plans of India
1. First Five Year Plan
Period: 1951 to 1956
Base Model: Harrod-Domar model with a few modifications.
Focus Area: Agricultural development.
Result: This plan was successful and achieved a growth rate of 3.6% (more than its target of 2.1%).
At the end of this plan, five IITs were set up.
2. Second Five Year Plan
Period: 1956 to 1961
Base Model: Based on the P.C. Mahalanobis Model made.
Focus Area: Industrial development of the country.
Result: The plan lags behind its target growth rate of 4.5% and achieved a growth rate of 4.27%.
The plan was criticized by many experts and as a result, India faced a payment crisis in the year 1957.
3. Third Five Year Plan:
Period: 1961 to 1966
Base Model: This plan is also called ‘Gadgil Yojna’, after the Deputy Chairman of Planning Commission D.R. Gadgil.
Focus Area: To make the economy independent. The stress was laid on agriculture and the improvement in the production of wheat.
During this plan period, India got engaged in two wars: (1) the Sino-India war of 1962 and (2) the Indo-Pakistani war of 1965. These wars exposed the weakness in our economy and shifted the focus to the defence industry, the Indian Army and the stabilization of the price.
Result: It could not achieve any targets due to wars and drought. The target growth was 5.6% while the achieved growth was 2.4%.
4. Plan Holidays:
Period: Due to the failure of the third Five Year Plan due to Indo-Pakistani war and the Sino-India war, the government announced plan holidays from 1966 to 1969.
During this plan, annual plans were made.
Focus Area: Equal priority was given to agriculture its allied sectors and the industry sector. To increase the exports in the country, the government declared devaluation of the rupee.
5. Fourth Five Year Plan:
Period: 1969 to 1974.
Focus Area: Two main objectives of this plan i.e. growth with stability and progressive achievement of self-reliance.
Indo-Pakistani War of 1971 and Bangladesh Liberation War also took place during this period.
Result: This plan failed and could achieve a growth rate of 3.3% only against the target of 5.6%.
During this plan, 14 major Indian banks were nationalized and the Green Revolution was started.
6. Fifth Five Year Plan:
Period: 1974 to 1978. It plan was terminated in 1978 by the newly elected Moraji Desai government.
Focus Area: Garibi Hatao, employment, justice, agricultural production and defence.
Result: Tthis plan was successful which achieved a growth of 4.8% against the target of 4.4%.
The Electricity Supply Act was amended in 1975, Twenty-point programme was launched in 1975, the Minimum Needs Programme (MNP) and the Indian National Highway System was introduced.
7. Rolling Plan:
Period: After the termination of the fifth Five Year Plan, the Rolling Plan came into effect from 1978 to 1990. In 1980, the elected Congress Govt terminated the Rolling Plan and a new sixth Five Year Plan was introduced.
Three plans were introduced under Rolling plan: (1) For the budget of the present year (2) this plan was for a fixed number of years – 3, 4 or 5 (3) Perspective plan for long terms – 10, 15 or 20 years.
The plan has several advantages as the targets could be mended and projects, allocations, etc. were variable to the country’s economy.
8. Sixth Five Year Plan:
Period: 1980 to 1985
Focus Area: Economic liberalisation by eradicating poverty and achieving technological self-reliance.
Base Model: Based on investment Yojna, infrastructural changing and trend to the growth model.
Result: It achieved a growth rate of 5.7% as against the planned target of 5.2%.
9. Seventh Five Year Plan:
Period: 1985 to 1990
Focus Area: Establishment of a self-sufficient economy, opportunities for productive employment and up-gradation of tecnology.
For the first time, the private sector got the priority over public sector.
Result: It achieved a growth rate of 6.01% as against the planned target of 5.0%.
10. Annual Plans:
The Eighth Five Year Plan could not take place due to the volatile political situation in the country.
Period: Two annual plans were formed for the year 1990-91& 1991-92.
11. Eighth Five Year Plan:
Period: 1992 to 1997
Focus Area: Top priority given to the development of human resources i.e. employment, education, and public health.
Result: The plan achieved an annual growth rate of 6.8% against the target of 5.6%.
New Economic Policy of India was launched
12. Ninth Five Year Plan:
Period: 1997 to 2002
Focus Area: growth with justice and equity
Result: This plan achieved a growth rate of 5.6% as against the growth target of 7%.
13. Tenth Five Year Plan:
Period: 2002 to 2007.
Targets:
- To double the Per Capita Income of India in the next 10 years.
- To reduce the poverty ratio of 15% by 2012.
- To achieve 8% GDP growth rate,
- To increase the literacy rate in the country.
Result: Its achieved growth rate of 7.2% as against the target of 8.0%.
14. Eleventh Five Year Plan:
Period: 2007 to 2012.
Base Model: The plan was prepared by C. Rangarajan.
Targets:
- To increase the growth rate in agriculture, industry, and services to 4%,10% and 9% respectively.
Focus Area: Theme was “rapid and more inclusive growth”.
Result:
- It achieved a growth rate of 8% against the plan’s target of 9% growth.
- Agriculture sector grew at an average rate of 3.7% as against 4% targeted.
- Industry grew with an annual average growth of 7.2% against 10% targeted.
15. Twelfth Five Year Plan:
Period: 2012 to 2017.
Focus Area: Theme is “Faster, More Inclusive and Sustainable Growth”.
Targets:
- Raising agriculture output to 4 percent.
- Manufacturing sector growth to 10 %
- The target of adding over 88,000 MW of power generation capacity.
Result: Its growth rate target was 8%.
Objectives of Economic Planning in India
Economic Development: Economic Development of India is measured by the increase in Gross Domestic Product (GDP) and Per Capita Income
Increased Levels of Employment: To better utilise the available human resources of the country by increasing the employment levels.
Regional Development: To reduce regional disparities in economic development among the various regions of the country.
All-Sector and Sustainable Development: Development of all economic sectors such as agriculture, industry, and services.
Increased Living Standard by increasing the per capita income.
Self Sufficiency: To make India self-sufficient in major commodities and also increase exports through economic planning.
Economic Stability: To create stable market conditions by keeping inflation low/moderate level
Social Welfare and Efficient Social Services: To increase labour welfare, social welfare for all sections of the society. Development of social services like education, healthcare and emergency services have been integrated in Indian planning policies.
Economic equality and wealth redistribution: Measures to reduce inequality through progressive taxation, employment generation and reservation of jobs.
Social Justice: It aims to reduce the population of people living below the poverty line and provide them access to employment and social services.
Now, with the dissolution of the Planning Commission and setting up of the NITI Aayog, the scheme of Five Year Plan is discontinued.