The five-year plan is a strategy for planning economic growth over a specified time period i.e. for five years, while simultaneously allocating the required resources to meet the targets on time. These were planned, developed and executed under the Planning Commission, from 1951 to 2014 and after it from 2015-2017 under NITI Aayog. In the year 2014, then the Prime Minister of India made an announcement about the dissolution of the Planning Commission and the establishment of the NITI Aayog.
Gandhian Model
Mahatma Gandhi was a keen supporter of agriculture. His belief was always to make decentralisation and a self-contained nation. He didn’t follow either centralisation, industrialisation, or state control over the economy. Agriculture-based small businesses and cottage industries were encouraged by him. These beliefs were opposed by the National Planning Commission. Jawaharlal Nehru assured that industrialisation will not hamper the establishment and encouragement of cottage enterprises. The major focus of the National Planning Commission was to construct a power-based economy and also lay down a top-down planning system which was not in synchronization with the Gandhian plan.
The National Planning Commission wished to lay focus on the goals of poverty reduction, setting up more jobs for individuals as well as economic growth. The Gandhian Model was laid down keeping in mind these socio-economic goals and assigning it to the respective process.
Which Five-Year Plan is Known as the Gandhian Model?
The Third Five-Year Plan can be referred to as the Gandhian Model. It commenced from 1961-1966 under the leadership of Pandit Jawaharlal Nehru. The major objectives of the Third five-year plan were the establishment of an independent economy. Such an economy was based on the idea of establishing a self-reliant and self-generating economy, enhancement of agriculture and improvement in the production of wheat. This plan was also known as the Gadgil Yojana. D.R. Gadgil was the Deputy Chairman of the Planning commission during the tenure of this five-year plan.
Third Five-Year Plan:
The Third Five Year Plan aimed at achieving a sustainably developed and expanding nation. It took into consideration the expansion plan for the next 15 years. The major objective of the Third five years was to increase the usage of manpower resources. It also aimed to increase the expansion of agricultural development and attain self-growth in terms of the production of food grains. The target was to achieve a boost of nearly 5% in the national income.
Objectives of Third Five-Year Plan:
The Third five-year plan had the following objectives:
- Establishment of larger equality of opportunity
- A yearly rise in national income of more than 5%.
- The established investment strategy must be able to maintain this growth rate over the coming years.
- Expansion of basic industries.
- Maximising the nation’s human capital.
- Reduction in disparities observed in terms of income as well as a wealth
- Better distribution of economic resources.
- Achieving self-sufficiency in terms of food grains.
- To increase agricultural production
- Fully utilising the manpower resources for better economic opportunities.
Success and Failure of Third Five-Year Plan:
The following are the successes of the Third Five Year Plan:
- A large number of primary schools were set up in the rural areas and secondary education was made a priority and delegated to the states.
- In the years 1965–1966, the Green Revolution was introduced to India and Punjab began producing a great deal of wheat.
- Dams were being constructed on a large scale.
- State electricity boards were formed.
- Additionally, numerous cement and fertiliser manufacturing facilities were built across the country.
But in many ways, the third strategy was a failure. Only the areas of transportation, communication, and social services met the plan’s aim. Otherwise, agricultural output decreased from 82 MT to 72 MT. Food and consumer item prices significantly increased. Despite being set at 5.6 percent, the actual growth rate was only 2.4 percent. The work under this five-year plan was affected by:
- During the plan period, two wars, the Indo-China War of 1962 and the Indo-Pak War of 1965 were fought. In both of these wars, the focus was on defence production.
- The deaths of Jawaharlal Nehru in 1964 and Lal Bahadur Shastri in 1965 severely lowered the morale of the country.
- In the year 1965-66, an almost-famine year was observed, which leads to the acute shortage of buffer stocks of food grains.
Frequently Asked Questions on Gandhian Model:
Q1. Describe the results of the Third Five-Year Plan.
Solution: Third Five Year Plan failed in many ways. Only the areas of transportation, communication, and social services met the plan’s aim. Otherwise, agricultural output decreased from 82 MT to 72 MT. Food and consumer item prices significantly increased. The work under this five-year plan was affected by the effect of drought and two wars, which were, the Sino-India war of 1962 and the Indo-Pakistani war of 1965
Q2. Describe the objectives of the Gandhian Model.
Solution: Following are the objectives of the Gandhian Model
- Establishment of larger equality of opportunity.
- A yearly rise in national income of more than 5%.
- The established investment strategy must be able to maintain this growth rate over the coming years.
- Expansion of basic industries.
- Maximising the nation’s human capital
Q3. The Third five Year-plan was also known as?
Solution: The Third five-plan was also known as the Gadgil Yojana. D.R. Gadgil was the Deputy Chairman of the Planning commission during the tenure of this five-year plan.
Q4. State Some of the Objectives of the Five Year Plan.
Solution: Some of the long-term objectives of Five Year Plans in India are:
- Prosperity due to increased economy
- Establishment of a self-independent economy
- Reduction in the disparities
- Modernisation of the economy.
Q5. What was the goal of the Gandhian Model?
Solution: The most important goals of the Gandhian Model planning were to fulfilling goals of economic growth, poverty reduction, job creation, and so on. The socio-economic objectives were also the major priority in India’s planning system.