Five Year Plans of India List, Objectives, Achievements

Five-Year Plans of India List, Objectives, Achievements: First-ever five-year plan in the Soviet Union (Russia) in 1928, implemented by Joseph Stalin. Several capitalist and communist nations adopted the concept and later devised their schemes. After the Second World War, many developing countries turned to economic planning. These plans, typically five years, would analyze the state of the economy and include investment and expenditure plans for almost every area, from transport and energy to agriculture and industry. The Indian economy was in shambles when it attained freedom. The Indian economy was hamstrung by British rule; therefore, the fathers of development created a 5-year plan to develop it. The Planning Commission of India draughts oversees and evaluates the five-year plan in India. The planning ideology sustained the Indian economy from 1947 to 2017. The Planning Commission (1951–2014) and the NITI Aayog created, carried out, and supervised this through the Five-Year Plans (2015-2017). The new government abolished the Planning Commission, headed by Narendra Modi and he replaced it with the NITI Aayog (an acronym for National Institution for Transforming India).

History of Five-Year Plans:

• In the 1940s and 1950s, the concept of planning as a method for restoring the economy rose to popularity.
• In 1944, a group of industrialists collaborated to create a proposal for establishing a planned economy in India. It is well-known as the Bombay Plan.
• After the country attained independence, planning for development was considered an important decision.
• In the Soviet Union, the Five-Year Plan was first implemented in 1928 by Joseph Stalin.
• After gaining its independence, India began a series of five-year plans to strengthen its economy.

Details of Various Five-Year Plans:

1. First Five-Year Plan (1951-1956):

• One of the most significant plans was the First Five Year Plans, which were essential to the beginning of Indian development following Independence.
•  Jawaharlal Nehru, the country’s first prime minister, gave the First Five-Year Plan to the Indian Parliament. 
• The First Five-Year Plan was based mainly on the Harrod-Domar paradigm. The total plan budget of Rs. 2069 crore ($2378 crore) was divided among seven significant categories, emphasizing agriculture, transportation, and communications.
• Five Indian Institutes of Technology (IITs) were established as important technological institutes after the plan period in 1956.
• 2.1% was the targeted growth rate, and 3.6% was the achieved growth rate.

2. Second Five-Year Plan (1956-1961):

• The second five-year plan is being led by Jawaharlal Nehru. It was based on the PC Mahalanobis Model.
• The nation’s industrial growth was the main objective of this five-year plan.
•  Numerous experts condemned it, and as a result, India experienced a payment problem in 1957. 
•  Even though 4.5% was the target growth rate, only 4.27% growth was achieved under this plan.

3. Third Five-Year Plan (1961-1966):

• This five-year plan was developed once more under Jawaharlal Nehru’s direction. It was known as the Gadgil Yojana and was named after the Planning Commission’s deputy chairman, DR. Gadgil. 
• This five-year plan’s main goal was to make the economy autonomous. 
• The agricultural industry was prioritized for this, particularly wheat production. 
• However, when this strategy was implemented, India experienced two significant wars: the Sino-Indian War (1962) and the India-Pakistan War (1965). As a result, attention was turned to the defense sector, and the stabilization of prices as India experienced inflation. 
• With a growth rate of 2.4% in the midst of all of this, the strategy was a failure. 5.6% was the intended growth rate.

Plan Holidays (1966-1969): 

•  The government was compelled to announce “plan holidays” due to the Third Plan’s abject failure (from 1966 to 1967, 1967–68, and 1968–69). 
• Throughout this interim period, three annual plans were created. 
• Again, there was a drought issue in 1966–1967. Agriculture, its related activities, and the industrial sector all received equal emphasis. 
• To boost the nation’s exports, the Indian government announced a “Devaluation of the Rupee.” The war, a lack of resources, and an increase in inflation were the leading causes of planned vacations.

4. Fourth Five-Year Plan (1969-1974):

• The Fourth Five-Year Plan embraced the goal of reversing the prior trend of greater economic and wealth power concentration. 
• It was based on the Gadgil formula, which emphasized growth while maintaining stability and moving toward independence. 
• Indira Gandhi was in office as prime minister at the time.
• The Indira Gandhi administration nationalized 14 significant Indian banks, and the Green Revolution boosted India’s agriculture. 
•  In addition, the situation in East Pakistan (now Bangladesh) was getting worse as money set aside for industrial development was diverted to the Bangladesh Liberation War and the Indo-Pakistan War in 1971.
• When the idea of a buffer stock initially emerged, a reserve of 5 million tonnes of food grains was planned. 
• The Drought Prone Area Program (DPAP) was introduced.
• The target growth rate was 5.6%. The achieved growth rate was 3.3%.

5. Fifth Five-Year Plan (1974-1978):

• The Fifth Five-Year Plan strongly emphasized justice, employment, and eradicating poverty (Garibi Hatao).
• The plan put a strong emphasis on independence in both defense and agricultural output.
•  In 1975, the Electricity Supply Act became law.
• The concept was rejected in 1978 by the Morarji Desai cabinet.
•  A 4.4% growth rate was the targeted one.
•  4.8% was the achieved growth rate.

6. Rolling Plan (1978-1980):

The Rolling plan was introduced in response to the rejection of the Fifth Five-Year Plan. Under the Rolling plan, three schemes were introduced for the current year’s budget.

• This plan was for a specific number of years, 3, 4, or 5. 
• Perspective planning for 10, 15, or 20 years.
• This plan has several advantages since the goals could be revised, and the funding and projects could be adjusted to the nation’s economic needs. 
• As a result, the targets must remain the same year after year because they can become challenging to attain when changed. 
• Destabilization of the Indian economy would follow from this. A new five-year plan was introduced after the Indian National Congress rejected the previous one in 1980.

7. Sixth Five-Year Plan (1980-1985):

• Nehruvian socialism ended with the implementation of the Sixth Five-Year Plan, which also signaled the start of economic liberalization. 
• To reduce population growth, family planning has also become more widespread.
• 5.2% was the targeted growth rate.5.7% was the achieved growth rate. 
• The only five-year plan that has been completed twice is the sixth one.

8. Seventh Five-Year Plan (1985-1990):

• This strategy was implemented from 1985 to 1990 under Rajiv Gandhi’s direction. 
• This strategy emphasized the development of a self-sufficient economy, opening up employment opportunities, and modernizing technology. 
• For the first time, the private sector was given precedence over the state. 
• The plan achieved a growth rate of 6.01%, and 5.0% was the targeted growth rate.

9. Annual Plans (1990-1992):

• After the seventh five-year plan, a highly charged political environment develops in the middle. The eighth five-year plan was, therefore, unable to be implemented. 
• Two yearly plans were created for these years—1990–1991 and 1991–1992.

10. Eight Five-Year Plans (1992-1997):

• The modernization of industries was one of the Eighth Plan’s key achievements.
• In the meanwhile, on January 1, 1995, India joined the World Trade Organization.
• Controlling population growth, reducing poverty, creating jobs, bolstering institutional building, managing tourism, developing human resources, involving NGOs, Panchayati Raj, Nagar Palikas, and local governments, and decentralization were the main goals.
• Energy was the top priority, accounting for 26.6% of the budget.
• 5.6% was the targeted growth rate. The achieved rate of growth was 6.8%.

11. Ninth Five-Year Plan (1997-2002):

• Following 50 years of Indian Independence, the Ninth Five-Year Plan was implemented.
• During the ninth five-year plan, India’s Prime Minister was Atal Bihari Vajpayee.
• The general people and governmental organizations in the nation’s rural and urban areas contributed to development during the Ninth Five-Year Plan.
• The relationship between the country’s rapid economic growth and the quality of life for its citizens was a vital theme of the ninth five-year plan.
• The targeted growth rate was 7.1%. The achieved growth rate was 6.8%.

12. Tenth Five-Year Plan (2002-2007):

The Tenth Five-Year Plan’s key goals are to: 

• Achieve annual GDP growth of 8%.
• 5% drop in the poverty rate by 2007.
• Providing at least the addition to the labor force with well-paying, high-quality jobs.
• A reduction of at least 50% in the pay and literacy inequalities between men and women by 2007.
• A 20-point system was implemented.
• Target growth was 8.1%; actual growth was 7.7%.
• The Tenth Plan was expected to adopt a regional rather than a sectoral strategy to reduce regional inequities.

13. Eleventh Five-Year Plan (2007-2012):

• At this time of the plan, the prime minister was Manmohan Singh.
• By 2011–12, it hoped to increase the number of 18–23-year-olds enrolled in higher education.
• The confluence of formal, non-formal, remote, and IT education institutions was a key focus.
• Quick and inclusive expansion (poverty reduction).
• A focus on the social sector and service delivery.
• The empowerment that comes from education and skill building.
• Increased rate of gender equality.
• To achieve growth rates of 4%, 10%, and 9%, respectively, in agriculture, industry, and services.
• Lower the fertility rate overall to 2.1.

14. Twelfth Five-Year Plan (2012-2017):

• It is India’s most recent five-year plan. The focus is on India’s rapid and sustained economic development. 
• Below is a list of the 12th five-year plan’s objectives:

1. The Government of India’s Twelfth Five-Year Plan aims to attain an 8.2% growth rate.
2. On December 27, 2012, the National Development Council (NDC) approved an 8% growth rate for the 12th five-year plan.
3.  The plan intended to improve the nation’s infrastructure initiatives while preventing any congestion.
4. The Plan aimed to generate 50 million new jobs in non-farm industries.
5. Expand accessibility to higher education
6. To supply all villages with electricity.
7. Half of the non-rural area residents must obtain safe drinking water.
8. It eliminates the gender and social admissions gap.
9. Address the malnutrition problem affecting children ages 0 to 3
10. To increase annual green cover by 1 million hectares.
11.  Enable 90% of households to access financial services.

Achievements of the Five-Year Plans

Significant achievements of the Five-Year Plans include:

1. Increase in National Income: India’s national income grew by 0.5% annually before planning. India’s average yearly growth rate has been around 5% during the planning period.
2. The rise in per capita income during the planning period: The annual per capita income growth rate was 2.9%.
3. Institutional and technical advancements in agricultural planning have significantly contributed to the growth of agriculture in our nation. The average annual growth rate of agricultural output was 2.8% during the planning period.
4. Industry expansion and diversification: During the planned period, the growth rate of industrial production was roughly 7% annually. Industries producing capital and essential goods have expanded significantly. The nation is now independent in the consumer products sector. The industrial sector has evolved and been modernized.
5. Economic and social infrastructure: During the planning phase, financial and insurance infrastructure, as well as transportation and communication infrastructure, irrigation, and power infrastructure, has grown significantly. Facilities for health and education have seen a tremendous increase.
6.  Increased job prospects have been the focus of targeted efforts throughout the plan period. The government set a goal of 58 million employees in the eleventh five-year plan.
7. Foreign trade: India’s trading abroad has also expanded astronomically. The value of international commerce in 1948–1949 was Rs. 792 crores. It was Rs. 38,11,422 crores in 2011–2012.
   Therefore, we may conclude that during the plan period, our economy made significant improvement.

Failures of the Five-Year Plans

Almost every strategy had poverty alleviation as its primary goal. But upon closer inspection, we find that it has not been adequately treated. With spiraling unemployment, inflation rates were at an all-time high. The equitable sharing of social and economic gains was the planning’s ethical objective. But the gap between classes continues to grow. Yet to be received were the desired findings to address inequities. People were becoming more vulnerable and excluded due to infrastructure issues.

What is NITI Aayog?

Since the Planning Commission was disbanded, no official plans for the economy have been developed anymore, but five-year defense plans are being created. 2017 through 2022 would have been the most recent. There isn’t a thirteenth five-year plan, though.

• A political think tank called the NITI Aayog was established to advise the government. Establishing a plan created from the standpoint of the Centre will not be a part of the NITI Aayog. Instead, it attempts to involve all states in creating systematic policies unique to each state.
• The NITI Aayog’s mission is to improve the effectiveness and cooperation of our country’s federal system by implementing the sustainable development goals (SDGs) that are developed in international fora.
• The Prime Minister serves as the NITI Aayog’s chairman. Amitabh Kant is now the planning commission’s CEO. All state’s chief ministers are members of the NITI Aayog’s governing council.

Conclusion:

After India gained its independence in 1950, economic planning was implemented since it was seen as crucial to expanding and developing the nation’s economy. The Planning Commission (1951–2014) and the NITI Aayog’s Five-Year Plans, which were created, put into action, and monitored, served as the vehicles for carrying this out (2015-2017).

Related Frequently Asked Questions and Answers:

Q1. What are the Objectives of the Five-year plan?

Ans.:Objectives of five-year plans:
1. Growth of economy
2. Economic equity and social justice
3. Full employment
4. Economic self-reliance
5. Modernization of the economy

Q2. What is the rolling plan?

Ans:

• The Rolling plan was introduced in response to the rejection of the Fifth Five-Year Plan. Under the Rolling plan, three schemes were introduced:
1. For the budget for the present year
2. This plan was for a specific number of years, 3, 4, or 5. 
3. Perspective planning for 10, 15, or 20 years.
• This plan has several advantages since the goals might be revised, and the funding and projects could be adjusted to the nation’s economic needs. 
• As a result, the targets must remain the same year after year because they can become challenging to attain when changed. 
• Destabilization of the Indian economy would follow from this. A new five-year plan was introduced after the Indian National Congress rejected the previous one in 1980.

Q3. What are the failures in the five-year plan?

Ans:

Almost every strategy had poverty alleviation as its primary goal. But upon closer inspection, we find that it has not been adequately treated. With spiraling unemployment, inflation rates were at an all-time high. The equitable sharing of social and economic gains was the planning’s ethical objective. But the gap between classes continues to grow. Yet to be received were the desired findings to address inequities. People were becoming more vulnerable and excluded due to infrastructure issues.

Q4. Write the main objectives of the twelfth five-year plan.

Ans. The objectives of the twelfth five-year plan in the five-year plan are:

1. The Government of India’s Twelfth Five-Year Plan aims to attain an 8.2% growth rate.
2. However, on December 27, 2012, the National Development Council (NDC) approved an 8% growth rate for the 12th five-year plan.
3. The plan intends to improve the nation’s infrastructure initiatives while preventing any kind of congestion.
4. The Plan aimed to generate 50 million new jobs in non-farm industries.
5. Expand accessibility to higher education
6. To supply all villages with electricity.
7. Half of the non-rural area residents must obtain safe drinking water.
8. It eliminates the gender and social admissions gap.
9. Address the malnutrition problem affecting children ages 0 to 3
10. To increase annual green cover by 1 million hectares.
11. Enable 90% of households to access financial services.

Q5. Write about the ninth five-year plan.

Ans.   Ninth five-year plan (1997-2002):
• Following 50 years of Indian Independence, the Ninth Five-Year Plan was implemented.
• During the ninth five-year plan, India’s Prime Minister Atal Bihari Vajpayee was in office
• The general people and governmental organizations in the nation’s rural and urban areas contributed to development during the Ninth Five-Year Plan.
• The relationship between the country’s rapid economic growth and the quality of life for its citizens was a vital theme of the ninth five-year plan.
• The targeted growth rate was 7.1%.
• The achieved growth rate was 6.8%.