First Five-Year Plan:
The first five-year plan is also referred to as the Domer-Mahalanobis Model since it was laid down by Domer’s five-year plans for the Soviet Union. The first five-year plan was delegated by Prof. P. C. Mahalanobis in order to lay down the idea of a self-sufficient closed economy. The total budget of the plan was calculated to be approximately Rs. 2069 crore. The three major priorities of the plan were :
- Agriculture – Most of the population got involved in the agricultural sector. Collectively enhancing agriculture became the primary goal of the first five-year plan.
- Growth of heavy industry – Unrealistic quotas were set for the production of goods and materials. The aim was to develop a one-industry town.
- Irrigation – Improve the irrigation facility in the country.
The following pie chart illustrates some of the major objectives of the first five-year plan in India:
Major Objectives of the First Five Year Plan
Objectives of First Five Year Plan:
The first five-year plan was developed in the years from 1951 to 1956, in order to encourage and enhance the agricultural sector of the country. The major focus behind the first Five Years plan was to handle agriculture development. Some of the objectives of the first five-year plan were as follows:
- Controlling inflation
- Rehabilitation of the farmers with no land
- Employment guarantee
- Enhanced production
- Trying to increase the per capita income
- Provide shelter as well as food supply to the refugees
- Reducing the dependency on the foreign exchanges
- Improving the efficiency of the primary sectors.
The Success of the First Five Year Plan:
The five-year plans were developed to boost the growth rate of both individuals as well as organizations. The first five-year plan was a major success within the nation. According to the growth analysis, the growth rate was predicted to be 2.1%, however, it reached about 3.6%, leading to a huge economic development that India had not seen for years. As a result, huge economic development was observed nationwide.
The primary sectors of the economy reflected by agriculture and irrigation were greatly improved. Also, better price stability was seen with lesser inflation. This resulted in better employment opportunities and a capital income rise. All the domains were covered by the first five-year plan, be it, infant mortality, science as well as technology.
By the time, the first five-year plan ended in the year 1956, the nation came to witness a sum of 5 total inaugurations represented by the technical institutions. The academia was encouraged and the institutions were funded by the UGC to achieve prosperity in higher education.
Assessment of the First Five-Year Plan:
- During the time of independence, a lot of issues were observed in the country. In addition to facing the partition issues as well as refugee influxes, many more economic imbalances were also noticed owing to the occurrence of the Second World War. Acute food shortage was seen during this time.
- Under the establishment of the five-year plan, a planned economy was also observed. A socialist goal was laid down which was based on the achievement of self-sufficiency in terms of the production of food. Therefore, the top priority was the field of agriculture. The entire cost of the first five-year plan was decided at Rs. 2069 crore. It was then later increased to the amount of Rs. 2378 crore.
- There weren’t any particular data studies at the specific point of time. This approach of the five-year plan commission was relatively random in nature. The idea was based on the joint work of a large number of enterprises that were distant from one another. However, the plan resulted in major success due to good harvests and a large emphasis on irrigation as well as agriculture.
- In addition to this, the nation was able to achieve its targets reflected by the growth parameter as well as the national income was boosted. The infant mortality rate was also reduced when the Indian government joined hands in collaboration with the World Health Organisation (WHO).
Related Frequently Asked Questions and Answers:
Q1. State some of the long-term goals of the Five-Year Plans.
Solution:
Some of the long-term goals of the Five Year Plans are :
- Modernization of the economy
- Reduction in disparities
- Promotion of social justice
- A self-sufficient economy
- Economic stability
Q2. What were the conclusions of the first five-year plan?
Solution:
The first five-year plan came into force during the Partition. There were acute food shortages and rising inflation throughout the nation. The first five-year plan came into action in the year 1951. The first five-year plan ended with an increase in per capita income as well as growth rates. A huge improvement was seen in agriculture and irrigation fields during the first five plans.
Q3. On which model is the first five plan based?
Solution:
The first Five-Year Plan started by the prime minister, Jawaharlal Nehru in the year 1951, was based on the Harrod–Domar model. The Harrod-Domar Model indicates that economic growth is dependent on investment policies.
Q4. How does the Harrod-Domar Model work?
Solution:
The Harrod-Domar Model is indicative that the economic growth rate depends on the following two things :
- Capital-Output ratio – Lower the capital-output ratio, more efficient investment, and higher growth rate.
- Level of savings – More the savings, more the investment
Q5. What was the achievement of the first five-year plan?
Solution:
During the first five-year plan, the growth rate was predicted to be 2.1%, however, it reached to about 3.6%, leading to a huge economic development that India had not seen for years. As a result, huge economic development was observed nationwide.