Planning in India
Planning commission was constituted on 15 March 1950on the recommendation of K.C. Niyogi committee. The Prime Minister is the ex-officio chairman of the planning commission. The deputy chairman of the planning commission enjoys the status of a Cabinet Rank Minister. Gulzari Lal Nanda is the first deputy chairman of the planning commission.
Planning commission was replaced by NITI Aayog on 1 Jan 2015. Arvind Panagariya is the first vice-chairmen of NITI Aayog. The prime minister is the ex-officieo chairmen of NITI Aayog.
National Development Council
NDC established on 6 Aug 1952. The prime minister is the ex-officio chairman and the secretary of planning commission is the ex-officio Secretary of the NDC. Chief Ministers of all the states and the members of planning commission are the members of NDC. The aim of NDC is to make a co-operative environment for economic planning between states and the planning commission.
First Five Year Plan
First five year plan(1951-1956) was based on the ‘Herold-Domar Model’. This plan was enforced on Agriculture. The growth rate of 3.6 is achieved in this plan which is more than its aim so it is declared as successful. During this plan there was increase of 18% in national income and 11% in per capita income.
Second Five Year Plan
This plan(1956-1961) was based on ‘Nehru – Mahalanobis model’. This plan was focused on heavy industries. A growth rate of 4.1% was achieved in this plan, various important large industries like steel plant at Durgapur, Bhilai and Rourkela were established during this period, integral Coach factory at perambur(chennai) and Chatranjan locomotive plants were also established in this plan. This plan was declared as successful.
Third Five Year Plan
This plan(1961-1966) was based on ‘Sandu - Subramaniam’ model. This plan is also known as Gadgil Yojana. This plan could not achieve its aim of 5.6% growth rate. This plan was focused on both agriculture and Industry. The main reason for the failure of this plan was:
- 1962 Indo-China war
- 1965 India-Pakistan war
- 1965-1966 Severe drought
Plan Holiday (1966-69)
The failure of Third Plan forced the Government to declare Plan Holiday. The main reason of plan holiday was Indo-Pakistan war, lack of resources and increase in price-level.
Forth Five Year Plan
In this plan (1969-1974) ‘Growth with justice’ and ‘Garibi Hatao’ were the main objectives of this plan. The two main objectives were ‘growth with stability’ and ‘progressive achievement of self-reliance’. This plan failed due to the adversity of climate and arrival of refugees from Bangladesh. Only 3.3% annual rate of growth was achieved against the aim of 5.7%.
Fifth Five Year Plan
In this plan (1974-1979) poverty elimination and achievement of self-reliance are the main objectives. During the plan, initially the growth rate target was fixed at 5.5%. However, later on it was amended to 4.4%. This plan was based on D.P Dhar model. This plan was generally successful. However there was no significant decline in poverty and unemployment. This plan was terminated in 1978 by ruling Janta government.
Rolling Plan (1978-80)
A new pattern started by Janta Government, which means that every year performance of the plan would be assessed and a new plan based on such assessment be made for the next year. The rolling plan started with an annual plan for 1978-79 and as a replacement of the terminated 5thyear plan.
Sixth Five Year Plan
The basic objective of Sixth Plan (1980-85) was removal of poverty. The plan aimed at achieving economic and technological self-reliance, reducing poverty, generating employment and improving the quality of life of poorest through the minimum needs programme etc. The target growth rate, in this plan was fixed at 5.2% and it achieved successfully 5.7% of annual rate of growth. In this plan programmes like Integrated Rural Development Programme (IRDP), Minimum Needs Programme(MNP) were started.
Seventh Five Year Plan
The aim this plan (1985-90) was to create, by the end of the century, the conditions necessary for self-sustaining growth and to provide basic minimum needs for all.
- Decentralisation of planning and full public participation in development.
- Removal of poverty and reduction in income disparities.
- The maximum possible generation of productive employment.
- Self-sufficiency in food at higher level of consumption.
- Higher level of social consumption, particularly in education and health and other basic amenities.
- A higher degree of self-reliance through export promotion and import substitution.
- Improved capacity utilisation and productivity.
- Efficiency, modernisation and competition in industry.
Due to fast changing political situation at the Centre the eight five year plan form 1990-95 could not take off. The new government which assumed power at the centre in June 1991 decided that the Eighth five year plan would commence on 1 April 1992 and therefore 1990-91 and 1991-92 will be treated as separate annual plans.
Eighth Five Year Plan
The eighth five year plan commenced from 1992-97. The main objective of this plan were
- to prioritize the specific sectors which requires immediate investment
- to generate full scale employment
- to promote social welfare measures like improved healthcare, sanitation, communication and provision for extensive education facilities at all levels
- to check the increasing population growth by creating mass awareness programs
- to achieve self-reliance in food and produce surpluses for increase in exports
- to strengthen the infrastructural facilities like energy, power, irrigation
- to increase the technical capacities to develop science and technology
- to place greater emphasis on role of private initiative in the development 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 and strengthening mass institutions.
This plan was successful and got 6.8E annual rate of growth, which was more than its target of 5.6%. During this period, Pradhan Mantri Rozgar Yojna was started in the year 1993.
Ninth Five Year Plan
The ninth plan (1997-2002) was launched on the fiftieth year of India’s independence. It assigned the priority of agriculture and rural development with a view to generate employment and poverty eradication. The focus of this plan is ”Growth With Social Justice and Equality”. It achieved only 5.35% growth rate against 7% of targeted growth rate. The recession in the international economy was held responsible for the failure of ninth plan.
Tenth Five Year Plan
The Tenth Five Year Plan India (2002-2007) aims to transform the country into the fastest growing economy of the world. This was decided after India registered a 7% GDP growth consistently over the last decade. The tenth plan was expected to follow a regional approach rather than sectorial approach to bring down regional in inequalities.
Eleventh Five Year Plan
The National Development Council (NDC) has approved the Eleventh Plan (2007-12) on 19th December 2007 to raise the average economic growth rate to 9 percent from 7.6 percent recorded during the Tenth Plan. The main points of 11th plan were:
- Rapid and inclusive growth.(Poverty reduction)
- Emphasis on social sector and delivery of service therein.
- Empowerment through education and skill development.
- Reduction of gender inequality.
- Environmental sustainability.
- To increase the growth rate in agriculture, industry and services to 4%, 10% and 9% respectively.
- Reduce Total Fertility Rate to 2.1
- Provide clean drinking water for all by 2009.
12th Five Year Plan
The 12th year plan has to commence from 2012 to 217. But the Planning Commission was replaced by NITI aayog on 1 Jan 2015. The 12th five year plan aims at one direction will help in doing so the growth rate at 8%. The government intends to reduce poverty by 10 per cent during the 12th Five-Year Plan. The status of the 12th Plan is in question due to the dissolution of the Planning Commission.