5 Year plans of India

Plan

• Spells out how the resources of a nation should be put to use.

• Has some general goals as well as specific objectives, which are to be achieved within a specified period of time.

History of Five year Plans• Borrowed the concept of five-year plans from the

former soviet union, the pioneer in national planning

• Jawaharlal Nehru was impressed with the remarkable successes in industrialization achieved by the USSR in their initial five year plans

• India has an extensive network setup to formulate 5-year plans under the supervision of the planning commission

Why to Plan

Some of the problems necessitated need for an immediate plan:– Vicious circle of poverty – Low Per Capita Income– High Rate of Growth of Population.– Low Level of Literacy.– Backward Technology.– Foreign Trade. – Need for Rapid industrialization

Objectives of Planning

• Central objective - raise the standard of living of the people– To increase per capita and NI– Higher level of employment– Growth with social justice– Increasing industrial output– To remove bottlenecks in agriculture, manufacturing

industry– Reduction of inequality in income– Modernization – Self- reliance

Stages in Planning• Formulation- by planning commission. In this stage,

planning commission prepares draft that goes to National development council. The council then endorse the draft, and it is forwarded to Parliament.

• Adoption- By Parliament

• Approval- After the approval of Parliament only, the draft becomes the planned document.

• Execution-By executive

• Supervision- By Officials

Pre-conditions of Planning

• Collection of Statistical Data- If at collection stage data is incorrect or irrelevant or collected half heartedly then economic planning won‘t be effective at all.

• Economic Organization • Government Setup • Public Cooperation- Citizen must provide every

information so that government can formulate policies for their betterment.

Planning Commission

Setup in 1950Jawaharlal Nehru -the first chairman

Current Structure 1. Chairman - Dr. Manmohan Singh

2. Deputy Chairman- Shri Montek Singh Ahluwalia3 Minister of State- Shri M.V. Rajshekharan

Planning Commission Divisions

• Planning Areas is divided under the following sectors:AgricultureInfrastructureSocial SectorOther sectors/ Areas

5 year plans• First plan (1951-1956)- Javaharlal Nehru • Second plan (1956-1961)- Prasanta Chandra • Third plan (1961-1966) -• Fourth plan (1969-1974)- Indira Gandhi • Fifth plan (1974-1979)- Morarji Desai • Sixth plan (1980-1985)- Rajiv Gandhi • Seventh plan (1985-1989)

• Period between 1989-91• Eighth plan (1992-1997)• Ninth Plan (1997 - 2002)• Tenth plan (2002-2007)• Eleventh plan (2007-2012)

The eleventh plan has the following objectives:1.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%. Raise real wage rate of unskilled workers by 20 percent. Reduce the headcount ratio of consumption poverty by 10

percentage points.

Eleventh plan (2007-2012)

2.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

Increase literacy rate for persons of age 7 years or above to 85% Lower gender gap in literacy to 10 percentage points Increase the percentage of each cohort going to higher education

from the present 10% to 15% by the end of the plan

3.Health Reduce infant mortality rate to 28 and maternal mortality ratio to

1 per 1000 live births Reduce Total Fertility Rate to 2.1 Provide clean drinking water for all by 2009 and ensure that

there are no slip-backs Reduce malnutrition among children of age group 0-3 to half its

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

the plan

4.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 to work

5.Infrastructure Ensure electricity connection to all villages and BPL households

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) by 2009, and ensure coverage of all significant habitation by 2015

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

Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by 2016-17

6.Environment Increase forest and tree cover by 5 percentage points. Attain WHO standards of air quality in all major cities by 2011-

12. Treat all urban waste water by 2011-12 to clean river waters. Increase energy efficiency by 20 percentage points by 2016-17

REAL STORY

3rd plan

Target GDP 5.6% Achieved GDP 2.84%

2nd plan

Target GDP 4.5% Achieved GDP 4.27%

1st planTarget GDP 2.1% Achieved GDP 3.6%

6th plan :

Target GDP 5.2% Achieved GDP 5.66%

5th plan

Target GDP 4.4% Achieved GDP 4.80%

4th planTarget GDP 5.7% Achieved GDP 3.30%

9th plan

Target GDP 6.5% Achieved GDP 5.35%

8th plan

Target GDP 5.6% Achieved GDP 6.78%

7th planTarget GDP 5.0% Achieved GDP 6.01%

11th plan

Target GDP 10% ????

10th plan Target GDP 8% Achieved GDP 7.8%

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

Real GDP Growth

Source World Development Indicators,World Bank

DEMOGRAPHIC INDICATORS1996 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

Projection of national poverty 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

Literacy rates

1951 1961 1971 1981 1991 2001 20090.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

18.33%

28.90%34.45%

43.57%52.21%

65.38%

79.90%

percentage of literates

percentage of literates

Conclusion

Economic Planning help in mobilizing and allocating the resources in desired manner.

Objective of economic planning is to reduce inequality, economic growth, balanced regional growth, modernization.

Each five year plan aims at achieving certain target. Five year plan constitute the steps toward the fulfillment of objectives of economic planning