FIVE YEAR PLAN

✓ Concept of planning : Joseph Stalin in the USSR in 1928.

✓ Father of Indian Economic Planning : M. Vishweshwaraiah.
✓ Chairman of NITI Aayog : Narendra Modi.
✓ The Vice-Chairman of NITI Aayog : Sumen Bery.
✓ CEO of NITI Aayog : B.V. R SSubrahmanyam.
✓ Headquarter of NITI Aayog : New Delhi.
1st FIVE YEAR PLAN (1951-1956) [Jawaharlal Nehru]
• Based on Harrod Domar Model.
• It emphasized in improved in Agriculture , Productions , Irrigation , Price
Stability , Power & Transportation.
• Agricultural production increased and achieved a 3.6% growth rate.
• Major dam projects of Bhakra-Nangal (Satluj river) , Hirakud (Mahanadi
river) & Mettur dam (Kaveri river) are started during this plan period.
• Damodhar valley coorperation
• University Grants Commisssion (UGC) formed [1953].
• Community Development Program (1952 oct 2).
• Family Planning Programme (1952). And it was came to existence 1st in
India.
• In 1956, 5 IITs were also started.
2nd FIVE YEAR PLAN (1956-1961) [Nehru]
• Based on Mahalanobis Model. ( ISI-Indian Statistical Institution formed
by him).
• Focus on rapid industrialization and industrial products.
• Steel plants at Bhilai (Chhattisgarh) , Durgapur (W.Bengal) , Rourkela
(Odisha) were setup.
• Target growth rate of this plan was 4.5% and actual growth rate was
4.27%.
• Indian Oil Coorperation Ltd (IOCL) – 1959.
• It was a game changer plan.
3rd FIVE YEAR PLAN (1961-1966) [Nehru]
• Leadership Nehru to Lal Bahadur Shastri (he was the only PM who died
at foreign country) after he became the PM.
 • Primary focus - Strengthen the economy and make it Self-reliant & Self-
sufficient. (agriculture mainly – Wheat & its production).
• Based on Gadgil Yojana (deputy chairman D.R Gadgil).
• 2 major wars :- 1962 – China : India
1965 – Pakistan : India
• Weakness on economy, massive inflation, price destabilization & famine
were faced.
• Beginning of Green Revolution (1965).
• Setup – IDBI & FCI etc.
• Setup – Bokaro Iron & Steel Plant ( Jharkand).
• Targeted:5.6% , But actual : 2.4%.
• {1st acting PM – Gulzarilal Nanda}
{1st acting President – V.V Giri}.
PLAN HOLIDAYS
• 1966-67 , 1967-68, 1968-69.
• Failer of 3rd five year plan, government came up with three annual plans,
it is called Plan Holidays.
• Plan focuses on economic development through emphasis on agriculture
and all the related sectors.
• To boost the country’s export, a rupee devaluation was announced by
the government.
4th FIVE YEAR PLAN (1969-1974) [Indira Gandhi]
• Based on Rudra Allen Model.
• Same as 3rd five year plan.
• 14 major banks were Nationalized and Green Revolution was
emphasized.
• Followed Gadgil yojana.
• White Revolution started (1970) [father : Verghese Kurien].
• Focused on stability and self sufficiency.
• Pakistan & India (war), due t the conflict in Bangladesh (the west
Pakistan).
• ISRO formed (1969).
• 5.7% : 3.3%.
5th FIVE YEAR PLAN (1974-1978) [Indira Gandhi]
 • Based on D P Dhar model.
• High Inflation.
• On this plan, Indira prioritized Garibi Hatao Schemes, Employment,
Justice, agricultural output & defence.
• India went “Emergency” period from 1975 to 1976.
• Only 4 years, because in 1978 the newly appointed Morarji Desai
government discontinues 5th five year plan.
• 20 point Program by Indira Gandhi, Minimum Needs Program, Indian
National Highway (1975) and Electricity Supply Act was established.
• RRB were setup.
• 5th five year plan was success, as India achieve a growth rate of 4.8% to
4.4% target growth rate.
ROLLING PLAN (1978-80)
• This was a period of instability. The Janata Party government rejected the
fifth five-year Plan and introduced a new Sixth Five-Year Plan. This, in
turn, was rejected by the Indian National Congress in 1980 upon Indira
Gandhi's re-election.
• The earlier one was subsequently referred to as a rolling plan.
6th FIVE YEAR PLAN (1980-85)
• Beginning of Economic Liberation.
• To prevent overpopulation, family planning was introduced.
• On the recommendation of the Shivaraman Committee, the National
Bank for Agriculture and Rural Development (NABARD) was established
(1982).
• Targeted 5.2% : actual 5.7%.
7th FIVE YEAR PLAN (1985-90) [Rajiv Gandhi]
• Led by Rajiv Gandhi (1st youngest PM of India).
• It stress on improving industrial productivity levels through the use of
technology.
• Other objectives are, increasing economic productivity, increasing
production of food grains and generating employment.
• Blue Revolution was first launched in India as the ‘Nili Kranti Mission’.
• Jawahar Rozgar Yojana (1989).
• Target 5.0% to actual 6.01%.
ANNUAL PLANS (1990-92)
• 8th five year plan was not implemented.
• In 1991, economic instability.
• India faced a crisis of foreign exchange reserves during this time.
• LPG (Liberalization, Privatization and Globalization) was introduced by
prime minister P. V Narasimha Rao.
• Dr. Manmohan Singh launched India’s free market reforms.
8th FIVE YEAR PLAN (1992-97)
• Aimed towards modernization of industries.
• Model: John W Miller or Rao-Manmohan.
• Narasimha Rao government, launched the New Economic Policy of India
(LPG Reforms).
• In this plan, the top priority was given to the development of human
resources ,that is , employment, education and public health.
• India became a member at WTO (1st Jan 1995) [ Headquarter : Geneva].
• Mid Day Meal Scheme (1995).
• PM Rojgar Yojana launched.
• SEBI was formed.
• TRAI was established.
• It also laid emphasis in involving the Panchayats and Nagar Palika
through decentralization. [ 73rd amendment act (1993) parliament
passed Panchayat Raj act (Schedule 11) ].
• Targeted 5.6% - Actual 6.8%.
9th FIVE YEAR PLAN (1997-2002) [Atal Bihari Vajpayee]
• The main focus of this plan was “Growth with Social Justice & Equality”.
• It was launched in the 50th year of Independence of India.
• Kudumbashree inaugurated (1998).
• 1998 – Pokharan 2 (nuclear test).
• 1999 – Kargil war.
• This plan gave priority to agriculture and rural development with a view
to generating adequate productive employment and eradication of
poverty.
• Antyodaya Anna Yojana-AAY (2000) & Annapurna Scheme (2000) were
launched.
 • Targeted 6.5% - Actual 5.40%.
10th FIVE YEAR PLAN (2002-2007)
• Under the leadership of Vajpayee and Manmohan Singh.
• Objective- Eradicate Poverty and Unemployment.
• It intended for an 8% GDP growth per year.
• It aimed at reducing the poverty by half and creating employment for 80
million people. Further, it aimed to reduce regional inequalities.
• It also emphasized reducing the gender gaps in the field of education and
wage rates by 2007.
• Right to Information Act was passed (2005).
• Kerala model.
• MGNREGA (Mahatma Gandhi National Rural Employment Guarantee
Act, 2005).
• National Rural Health Mission.
11th FIVE YEAR PLAN (2007-12) [Manmohan Singh]
• It was prepared by C. Rangarajan.
• Theme : Rapid & more inclusive growth.
• Rajiv Aarogyasri Health Scheme was launched.
• Create 70million new work opportunities.
• Reduce educated unemployment to below 5%.
• Aimed at environmental sustainability & reduction in gender inequality.
• Right to Education Act (2009 passed) (effect 2010).
• Targeted 9% : Actual 8%.
12th FIVE YEAR PLAN (2012-2017)
• Theme : “Faster, more inclusive & sustainable growth”.
• Aimed to Strengthening infrastructure projects & providing electricity
supply in all villages.
• It also aimed at removing the gender and social gap in admissions at
school and improved access to higher education.
• Achieve 4% growth in agriculture and reduce poverty to 10% points.
• Targeted 9% : Actual 8%.
EXTRA POINTS
❖ National Development Council (NDC) given the final approval to the five
year plans of India (established on 6th Aug 1952).
❖ NDC is consists of members of Planning Commission and Governors of
the states.
❖ In 2nd five year plan India opted for mixed economy.
❖ Twenty point programme was launched in the year : 1975.
❖ Second Nationalisation of banks was happened under 6th five year plan.
❖ In 1974, India performed the Smiling Buddha was the 1st underground
nuclear test. (4th five year plan).
❖ Economic Planning is in Concurrent list.
❖ In 11th five year plan in India, the concept of Financial inclusion was
included for the 1st time.
❖ Universalization of Secondary Education was an aim of 11th five year
plan.
❖ Khadi and Village Industry Commission was established in 2nd five year
plan.
❖ Planning Commission setup on 1950.
❖ Planning Commission was stopped on 2014 Aug and NITI Aayog took
effect on 1st Jan 2015.