First Five Year Plan

Five-year plans are part of the Centralised Plans. These plans are formulated by the Central Government and financed by it for implementation at the national level. Five – year Plans are the most important among all the centralized Plans and is being continuously implemented one after the other since planning commenced in India. Since planning has been a purely political exercise in India, The Five-year plans of the country have seen many unstable and critical moments. Several new developments related to planning also took place during the Years.

First Five Year Plan (1951 – 1956):

The plan was launched with all the lofty ideas of socio-economic development, which had frustrating outcomes in the following years. The period of this plan was 1951-1956. As the economy was facing the problem of large-scale food grain import during the years 1950-1951 and the pressure of price rise, the plan accorded the highest priority to agriculture including irrigation and power projects.

Designer of the Plan: Mokshagundam Visvesvaraya

Plan Model: HARROD and DOMAR GROWTH MODEL

Chairman:  JAWAHARLAL NEHRU

Deputy Chairman:   GULZARILAL NANDA

Main importance was given to AGRICULTURE, so it was called as AGRARIAN PLAN or AGRICULTURAL PLAN

AIMS:

• Improvement of Food grain productivity.
• Reducing Price levels by increasing Real income.
• Improving the standard of living.

ACHIEVEMENTS:

• This plan has the aim of attaining a growth rate of 2.1% but in reality, it achieved 3.6%. Based on 2004-05 prices it is marked as 4.2%.
• Price levels are decreased by 13%
• food grains productivity – to be increased from 52.2 million tons to 61 million tons. Achieved 65.2 million tons.
• PCI GROWTH RATE  achieved 1.8%.
• One of the revolutionary achievements is that JAMINDARI SYSTEM was abolished by 1951.
• Projects: Bhakranangal project (Himachal Pradesh), Hirakudh – Orissa, Damodar Valley, Machkund power plant, Nagarjuna Sagar dam ( just started during this plan on the recommendations of Kosala committee)
• In 1952, Community Development Program(CDP) was started on the recommendations of the Krishnamacharya committee.

SOURCES ALLOCATION:

• TRANSPORT AND COMMUNICATION: 523 CRORES 27%
• COMMUNITY AND OTHER SERVICES: 459 CRORES 23%
• IRRIGATION FACILITIES: 310 CRORES 16%
• AGRICULTURE: 291 CRORES 15%
• POWER/ ELECTRICITY: 260 CRORES 13%
• INDUSTRIES AND MINES: 120 CRORES 6%

EXPENDITURE:

Estimates were 2069 Crores and were allocated to 1963 Crores. 

CRITICISM:

More importance was given to agriculture leaving industries on the side, which lead to an increase in unemployment.

Frequently Asked Questions With Answers:

1. Why does India need Five-year plans introduced?

Answer: Five-year plans are introduced to increase growth, poverty alleviation, employment, justice, equality, modernization, self-reliance, and development of the Country.

2. What are the types of Planning?

Answer: Planning is one of the four functions of management that allows a manager to develop and implement strategic action steps aimed at reaching an organizational goal. There are three major types of planning, which include operational, tactical, and strategic planning.

3. Who will prepare five-year plans in India?

Answer: Planning Commission, an agency of the government of India established in 1950 to oversee the country’s economic and social development, chiefly through the formulation of five-year plans.

4. During which Plan Central Statistical Organisation started?

Answer: Central Statistical Organisation was started during the first Five-year Plan on 2nd May 1951.

5. What are the Programmes started during the First Five year Plan?

Answer: National Forest Policy(1952), National Development Council(1952), National Service Expansion Program (1953), Small Industries Development Organisation(1954), Khadi Village Industries Commission (1956).