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indian economy

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on 25 January 2018

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Transcript of indian economy

planning, in the context of macro - economy of the country, is a process for achieving a purpose, for example, economic growth. it is a blue print of growth and a road map of development. it help in deciding the objectives and keeping in view the resources. All contemporary economics are planned economies. since, the last century, there wear the following types of socio-economic planning undertaken by the government.
command economy or directed economy in which the government manages the economy by making all decisions on the production and consumption of goods and services. in such economies, central economic planning by the government is so extensive that it controls major sectors of the economy and formulates all decisions about their use and above the distribution of income. under a commend economy, the means of production are publicly owned.
There are other economies where there is centralized planning exits and government owns certain production units but markets also lay a significant role. it is cad mixed economy-government and the market co-exist. if private sector has large role in it, it is driven by indication plan. in mixed economy, the price system is not entirely free but under some government control. that is, prices are administered. in other words, non-profit factors becomes important in pricing as in food, fertilizer, petrol etc in india.
Planned economies are in contrast to market economy, where production, distribution, pricing, and investment decisions made by the private owners of the factors of the production based upon their own interests rather than upon furthering national goals. the real world, market economies do not exits in pure form, as societies and governments regulate them to varying degrees rather then self- regulation by market forces. left unregulated market can fail: market does not efficiently allocate resources to achieve the greatest possible good.
The pioneer of national economic lanning was
mokshagndam visveswarayya. sriM. visveswarayya,
the great civl enginner began the explorations for socio-economic development of india with his book
: planned economy in india in 1836
1944 S.N.Agarwal
MN Roy
, the radical humanist gave the people's plan; and the
plan by industrialists were the major efforts in the major efforts in the first half of
to bring about economy growth to india. the plans had different priorities and modes of operations.
plan emphasized on
decentralization, rama rajya; agriculture; village republics; dignity of labour; small scale industry etc.

1944, bombay
plan, or a plan of Economic development for india, is a
fifteen- year
plan for the economic development of india to be given effect to in three successive
stages double the per capital income.
1945, MN Roy's
people's plan focused on wage goods food, clothing and housing along with other basic amenities.
1934, subhash chandra bose
as the congress president, appointment the national planning committee with
jawaharlal nehru
as its chairman.
The planning commssion was set up by a Resolution of the government of india in march
pursuance of declared objectives of the government to promote a rapid rise in the standard of living of the people efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. within
months of its inception, it presented the draft of the first five year plan to the government in
1951, july. on 1952 December 8th Nehru presented the draft of first five year plan to the lok sabha.
The planning commission was charged with responsibility of making assessment of all resources of country, augmenting deficient resources, formulating plans for the most effective and balanced utilization of resources and determining priorities.
Jawaharlal Nehru was first chairman of the planning commission.

The 1950 resolution setting up the planning commission outlined its functions as to:
Make an assessment of the material capital and human resources of the country, including the personnel and investigate the possibilities of augmenting such of these resources as are found to be deficient n relation to the nation's requirement;
Formulate a plan for the most effective and balanced utilization of country's resources;
On determination of priorities, define the stages in which the plan should be carried out and propose the allocation of resources for the due completion of each stage;
Indicate the factors which are tending to retard economic development, and determine the conditions
Plan Target Actual@
1. First plan (1951-56) 2.1 3.61
2. Second plan (1956-61) 4.5 4.32
3. Third plan (1961-66) 5.6 2.38
4.Fourth plan (1969-74) 5.7 3.21
5.Fifth plan (1974-79) 4.4 4.80
6.Sixth plan (1980-85) 5.2 5.69
7.Seventh plan(1985-90) 5.0 5.81
8.Eighth plan(1992-97) 5.6 6.50
9.Ninth plan(1997-2002) 6.5 5.5
10.Tenth plan(2002-07) 8% 7.8
11.eleventh plan(2007-12) 9% --
Which, in view of the current social and political situation, should be established for the successful execution of the plan;
Determine the nature of the machinery which will be necessary for securing the successful implementation of each stage of the plan in all its aspects;
Appraise from time to time the progress achieved in the execution of each stage of the plan and recommend the adjustments of policy and measures that such appraisal may show to be necessary; and
Make such interim or ancillary recommendations as appear to it to be appropriate either for facilitating the discharge of the duties assigned to it or on a consideration of prevailing economic conditions, current policies, measures and development programmes or on an examination of such special problems as may be referred to it for advice by central or state government
Composition of the commission
With the prime minister as the ex-officio chairman, the committee has a nominated deputy chairman who is give the rank of a full cabinet minister mr. montex singh Ahluwalia is presently the Deputy chairman of the commission.
cabinet ministers with certain important portfolios act-as part-time members of the commission while the fill-time members are experts of various fields like Economics, industry, science and general Administration. Members enjoy the rank of ministers of state in the nion council.
The commission works through its various divisions, of which there are three kinds:
General planning Divisions
Special planning Divisions
programme Administration Divisions
The majority of experts in the commission are economists
Goals of five years plans
Five year plan have general goals and each plan has specific thrust. the goals of the five year plans are:
Economic growth
Technological modernisation
Social justice
Growth refers to increase in the production and productivity of the economy, that is, the capacity of economy to produce more goods and services. It is measured generally by GDP grew at 7.8% during the 10th plan period (2002-07). GDP, however measures only the quantitative asects of growth and ignores the qualitative ones: environment, equity etc. Therefore, human development index and other measures have come up.
Growth is the most important prerequisite for the achievement of all other national social-economic goals. Growth is necessary but not sufficient for social justice. Governmental policies of interventon need to steer growth towards inclusiveness as the 11th Five Year Plan seeks to
Imperative Planning:
Type of planning where the central planning authority decides upon every aspect of the economy and the targets set and the processes delineated to achieve them are to be strictly followed. This type of planning is mainly practiced in the socialist economies.
Physical Planning:

Economic planning may be physical planning or financial planning. Indian planning is physical in nature. This is based on assumption
Indicative Planning:

A system of planning in which the start sets board parameters and goals for the economy. it is different from centralised planning as unlike in the latter, the state does not set plan targets to the minutest details but only broadly indicates the targets to be achieved. it was adopted in our country since the 8th Five Year Plan, as practiced in many develoed countries
Decentralized planning:
Indian planning is decentralized in the sense that National Development Council is represented by state governments and union territories also. There is constitutional provision for district lvel planning. All there facts make the indian planning decentralized in nature.
perspective planning:
it's a planning for a long period of time, usually 15-20 years. As a highly specialised task, it is operationalised through the Five Year and Annual plans. In such form of planning, the planners formulate a perspective plan that broadly defines the direction desired to be taken by that economy.
Rolling Plan:
under the scheme of rolling plans, there are three different steps. First, a plan for the current year which includes the annual budget. second, a plan for a fixed number of years, say three, four or five. it is revised every year as per the requirements of the economy
Social planning:
Indian planning is not typically economic planning prevalent in most of the development countries. Due to various social objectives to be achieved through the planning process, indian planning is economic planning as well as social planning.
do(2007-12). the more the growth the more the taxes collected by the government that it can spend on welfare and development.
The GDP of a country comes from essentially three sectors of the economy; agriculture sector, , the industrial sector and services sector. The contribution made by each of these sectors makes up the structural composition of the economy is powered by growth in agriculture.
As economy develops the secondary sector gains strength. The development economies are driven by the tertiary sector (services). this process of moving towards services sector dominance after exhausting the industrial growth is known as modernization.
The structural composition of indian economy is dracstically changing with the contribution of agriculture and allied sectors falling to about 17% of GDP in 2008-09 from above 70% at the time of independence.
Technological modernization:
To increase the production of goods and services the producers have to adopt new technology. for example, green revolution with agro chemicals and tractorization and HYV's modernized indian agriculture and stepping up out put. Mahalanobis model adopted during the 2nd FYP (1956-61) contributed to modernization of industrial base for higher growth.
Five Year plans have the general goals of modernizing the economy for greater production and productivity
It refers to using the resources available in the country to the extent possible for the growth of economy, it is necessary to set our own priorities and avoid dependance on foreign capital and technology in the initial stages. Green revolution made us self-revolution for food which is important for food security. similarly, mahalanobis model made us largely self-reliant in industry. it is important to differentiate between self- reliance and self- sufficiency the latter means the country has all the resources necessary for its growth it is not true with regard to any country. self- reliance on the other hand is using the resources of the country for the growth to the extent possible by resorting to import substitution and demestic capital
With colonial exoitation that india suffered, we had the fear that dependence on imported food sulies, foreign technology anforeign capital may make india's sovereignty vulnerable to foreign interference in our policies.
Growth n itself is only half the story. The remaining half is about spreading the effects of growth equitably-fairly to all sections of the society. It sold help the quality of life for all people. The divides with in the society of life for all people. The divides within society that society that need to be bridged as a result of growth ertai to gender; caste;region;per capital income and rural-urban gaps. while growth with equity is goal of all plans, the 11th plan made it the theme to have faster and more inclusive growth so that poverty, unemployment, malnutrition and interregional imbalances are removed.
Changing Role Of Planning Commission
From a highly centralized planning system, Indian economy is gradually moving towards indicative planning where planning commission concerns itself with the building of a long term strategic vision of the future and decide on priorities of nation, it works ot sectoral targets and provides promotional stimulus to the economy to growth in the desired direction. planning commission plays an integrative role in evolving a national plan in critical areas of human and economic development. In the social sector, planning commission helps in schemes which require coordination and synergy like rural health, drinking water, rural energy needs, literacy and environment protection.
It involves multiplicity of agencies. As integrated approach can lead to better result at much lower costs.
The key to efficient utilisation of resources lies in the creation of appropriate self managed organisations at all levels. In this area, planning Commission attempts to lay a systems change role and provide consultancy with in the government for development better systems. In order to spread the gains of experience more widely planning commission also plays an information dissemination role.
With the emergence of severe constraints on available budgetary resources the resources allocation system between the states and ministries of the central government in under strain. This requires the planning commission to play a mediatory and facilitating role, keeping in view the best interest of all concerned. it has to ensure smooth management of the change and help in creating a culture of high productivity and efficiency in the government.
Relevance of planning
With the decline of socialist pattern of planning centered around state control and ownership in the last decade, the role of state is undergoing a qualitative change in relation to economic and social development.
The new state orientation is reflected in the reduction in state owned enterprise; the extent of the state ownership the greater role accorded to corporate sector: the relaxing of controls and so on.
With the change in the role of the state, the function of planning for the development of the country also is under going change, particularly since the commencement of the economic reforms in 1991 in india, there has been a national debate about the relevance of planning in the changing context of economic liberalization.
There has a national debate about the relevance of lanning in the era of liberalization where the state controls and regulations are dismantled to a great extent and market forces are given larger role.
The investment of the government for the five year plans are also on decline.
It is true that the quantitative aspects of planning in terms of contral over economy are being selectively phased out and the nature of planning process is undergoing a qualitative change.
In federal democracy lke ours, the principal task of planning is to evolve a shared vision among not only the federal units but also among other economic agents so that the efforts of all the actors become convergent towards the national priorities.
while the growth process can be made the responsibility of the corporate sector to a greater degree, its direction and distribution are to be steered by planning public intervention so that regional imbalances are reduced and socioeconomic inequities are set right.For example, directing and technology intensive areas to realize national goals.
provisions target outcome
GDP Growth 8.00 7.80
Growth in Agriculture 4.00 3.42
Growth in Industry 8.90 8.74
Growth in service sector 9.40 9.30
Investment Rate(% of GDP) 28.41 28.10
Domestic savings(% of GDP) 23.41 26.62
Average Inflation based on WPI 5.00 5.02
Along with the nature of planning, the nature of instruments available to planners in the implementations has changed. Earlier ermits and licenses wear the instruments, now fiscal signals-tax rates etc are the instruments.
Given federal nature of the indian context the role of planning is to develop a common policy stance for center and states. Also the task of federal policy corrdination is central to indian planning, for example the need to invite foreign investment in infrastructure areas like power needs center - state coordination as the necessary legislation and administrative changes involve both
Lastly, planning at the grass roots level that is participatory is very crucial for improving the delivery systems and proper use of the resources. The role of the government is thus to facilitate participatory planning
In-the new context of economic reforms the following changes are evident:
Government only indicates targets and facilitates growth unlike earlier when the government directed the process thus reducing the governmental role reflected in the indicate model of planning of adopted since the 8th five years plan(1992-97)
The physical control of the government over the economic process is gradually being replaced with fiscal controls taxes and duties used as incentives.
Integration of indian economy with global economy means the import control and tariffs are being relaxed and reduced : rupee convertibility being brought in phases; FDI is being invited on liberal terms and so on. protection of the indian economy against the vagaries of globalization is a crucial part of planning.
The role of the government will be in the area of creating and enabling milieu for investment.
Social safety of vulnerable groups needs to be planned for-food security Act that is promised and the NREGA that is in effect
In the context of such a situation the planning model needs to be changed to achieve building of social infrastructure for human development; protection of ecology, regenerating environment and natural resources; protecting the vulnerable sections; and bringing about regionally balanced growth.
The planning exercise is necessary as the problem of market driven economy is that it caters to the short term needs; well-off sections; more developed regions and its sensitivity to the macro problems requiring a national effort is minimal.
Further,planning is necessary for the sectors like energy, communication, transport and so on as private sector needs to be guided into the national plan.
More, be shared augmented ad sourced well. For example n the fiscal federal context introduction of VAT and later GST requires detailed and painstaking planning and national effort
It is further observed that the liberalization process is presently showing trends of by passing the weaker states and the need of planning process of growth so that regional economic imbalances do not result from the market driven growth.
The allocation of resources for various sections of the society equitably is another important function of planning which assumes greater importance as monopolies and oligoplies are an intrinsic part of market economies. therefore, the 11th plan (2007-12) focuses on inclusive growth.
In the era of globalization where corporate are not expected to plan beyond the growth of a particular unit,the role of safeguarding national interest is that of planning by the state. For example; being subjected to various discriminative trade practices by EU,USA and so on, the indian farmers, manufacturers and exporters have to fight sophisticated battles in the WTO for which the legal services and information and building up bargaining power are best provided bt the state.
National Development Council
It is one of the most important federal bodies in the country with the explicit mandate to study and approve the Approach plan to the Five Year Plans and the five year plan documents. The mid-term reviews of the Five year plans are considered by the NDC. In fact, without the NDC approving the Five year plan does not come into effect.
The National Development Council is not a constitutional body nor a statutory body(not set up by an Act of the parliament ). Union cabinet set up the NDC in 1952 with following functions.
National Development Council:
It is one of the most important federal bodies in the country with the explicit mandate to study and approve the Approach plan documents. The mid-term reviews of the five years plans are considered by the NDC. In fact, without the NDC approving the Five Year Plan does not come into effect.
The National a development council is not a constitutional body nor a statutory body (not set up by a ACT of the parliament). union cabinet setup the NDC in 1952 with the following functions.
To prescribe guidelines for the formulation of the national plan.
To consider guidelines for the formulation of the national plan.
To consider the national plans formulated by the planning commission.
To assess the resources for the plan and recommend a strategy for mobilizing the resources
To consider important questions of social-economic policy affecting development of the nation
To review the progress of the five year plan mid-course and suggest measures for achieving the original targets.
NDC is headed by the prime minister and has all union cabinet ministers; chief ministers of all states; and the members of the planning commission as it members. planning commission ithe think tank of the council.
Financial resources for the five year plans
The resources for plan come from
Central budget.
State budget.
Domestic private sector and
The first year plan was presented by jawaharlal nehru in 1951. The first five year plan was initiated at the end of the turmoil of partition of the country. it gave important to agriculture, irrigation and power projects to decrease the country's reliance on footgrains imports, resolve the food crisis and ease the raw material problem especially in just and cotton.
The primary objective of the first five year plan was to improve living standard of people of india.
Keeping in view the large-scale imports and food grains in 1951and inflationary pressure on the economy, the first plan (1951-56) according the highest priority to agriculture including irrigation and power project.
The plan also aimed at increasing the rate of investment from five to about seven per cent of national income.
Plan Outlay:
The total outlay of the first five year plan was worth rs 2,069 crore.
About 44.6 percent of the total outlay of Rs 2,069 crore in the public sector (later raised to Rs 2,378 crore) was allotted for its development.
Nearly 45% of the resources wear designated for agriculture, while industry got a modest 4.9
Through the first plan was formulated hurriedly it succeeded in fulfilling the targets. Agriculture production increased dramatically, national income went up by 18% per capital income by 11% and per capital consumption by 9%
The second five year plan was initiated in a climate of economic prosperity, industry gained prominence. Agriculture programmes wear formulated o meet the raw material needs of industry, beside meeting the food needs of the increasing population. The industrial policy of 1956 was socialistic in nature. The plan aimed at 25% increase in national income.
The basic objective of the second plan was to secure a rapid growth for the economy. The plan aimed at 25% incease in national income(5% per annum).
To create 10 million additional employment opportunities.
Rapid industrialization with particular emphasis on basic and heavy industries.
Reduction in income inequality
The following Irrigation projects wear started during that period:
1. mettur dam 2. hirakund dam 3. bhakra dam
The government had taken steps to rehabilitate the landless workers, whose main occupation was agriculture. These workers, wear granted fund for experimenting and undergoing training in agriculture know how in various cooperative institutions.soil conservation, was also given considerable importance.
The government also made considerable effort in improving posts and telegraphs, railway services, road tracks, civil aviation.
Sufficient fund was also allocated for the industrial sector. in addition, measures wear taken for the growth of the small scale industries
Planning commission chairman

=>prime minister => Dr. monmohan singh
Deputy chairman
=>Dr. monmohan singh Ahluwalia
Ex-officio member
=>Minister of the state for planning
=>mr.Ashwani kumar
Members B.K.Chaturvedi saumitra Chaudhari, Dr syeda Hameed, Mr. Mihir shah, prof.Abhijit sen, Dr narender jadhav, Dr.k kasturi rangan, Mr.Arun mara.
Member secretary
=>Ms. sudha pillai
Mahalanobis Model of Development and Planning
The 2nd five year plan, functioned on the basis of mahalanobis model. The mahalanobis model was propounded by the famous prasanta chandra mahalanobis in the year 1953. His model addresses different issues pertaining to economic development.
According to this model, is assumed that the economy is closed and has two segments.
1. segment of consumption goods
2. segment of capital goods
Capital goods cannot be moved or are "non shiftable".
Production is at its peak
Depending on the availability of capital goods investment are decided upon.
Capital is the scarce factor.
Capital goods production is not influenced by the consumer goods production
In comparison to the first five year plan, the second five year plan was a moderate success unfavorable monsoon in 1957-58 and 1959-60 affected agriculture production and also the Suez crisis blocked International, Trading, Increasing commodity prices.
As many as five steel plants including the one each at durgapur, jamshedpur as well as bhilai wear set up
Hydroelectric power plants wear built during the period of the 2nd five years plan.
There wear considerable increase n production of coal.
The North-eastern part of the country, witnessed increase in the number of railway tracks
Atomic energy commission came into being. The commission was established in the year 1961-1966.
During the same period, Tata Institute of Fundamental Research was born. The institute conducted several programs to search for talented individuals. These individuals would eventually be absorbed into rograms related to nuclear power
India's first and second five year lans paved the way for the third five year plan, the term of this plan being from the year
Objectives of third five year plan:

The planning commission aimed at the following:
Increasing the national income by five per annum.
Making india self sufficient by increasing agricultural production. This step was taken to ensure that india does not have to bank on other for food products.
Minimizing rate of unemployment.
Ensuring the people enjoy equal right in the country
1. the third five year plan laid considerable stress on the agriculture sector.however with the short lived sino-indian war of 1952 diverted its attention to safety of the country. Again, during the period 1965-1966, owing to Green Revolution, once again agriculture attracted attention.
2.Due to sino-india war, india witnessed increase in price of products. The resulting inflation was cost push in nature. Many dams wear constructed during this period. it may be recalled, that when the First five year plan was tabled, construction of Harakud dam, mettur dam and bhakra dam had taken place along with dams' india got many fertilizer plants and cement making plants built in this plan period. Abundant production of wheat take place in punjab.
3. When first five year plan wear introduced people war slightly apprehensive about the success of the plan. so, when it was discovered that the First and the Second five year plans wear successful. people pined there hopes on the next five year plan.
4.Role of the state increased and they wear given more prominence. many primary school wear started functioning in the village areas. various bodies looking into matter related into secondary education wear also formed. To promote democracy, these was commencement of the panchayat elections.
5.These was formulation of the state electricity boards. The state governments wear entrusted with the responsibility of constructing roads.
The situation created by the Indo-Pak conflict in 1965, two successive years of seven droughts, devaluation of the currency, general rise in prices, and erosion of resources available for plan purpose delayed the finalization of the Fourth Five Year Plan instead, between 1966-1969, three annual plans wear formulated. During these plans wear whole new agriculture strategy involving wide spread distribution of High-Yielding Varieties of seeds. the extensive use of fertilizers, exploitation of irrigation potential and soil conservation was put into action to tide-over the crisis in agricultural production. During the annual plans, the economy basically absorbed the shocks generation during the Third plan, making way for a planned growth.
outlay/Exenditure Under Different Plans(in Rs crores)
plan period Approved Expenditure
Annual Plans
Annual plans

Annual plans

Annual plans
Main emphasis was on agriculture's growth rate so that a chain reaction can start. Fared well in the first two years with record production, bt failed in the last three years due poor monsoon. plan had to tackle the influx of bangladeshi refugees before and after 1971 Indo-pak war. The Fourth Five Years Plan also served as a stepping stone for the economic growth.
Accelerating the tempo of development and reducing fluctuations in agricultural production as well as the impact of uncertainties of foreign aid
To raise the standard of living through programmes designed to promote equality and social justice.
Improving the condition of the less privileged and weaker sections especially through provision of employment and education.
Reduction of concentration wealth, income and economic power to promote equity
Increasing net domestic product(at 1968-69 factor cost) from Rs 29,071 crore into 1969-70 to Rs 38,306 crore n 1973-74
Average annual compound rate of growth envisaged was 5.7 percent
1. India had to reform and restructure its expenditure agenda, following the attack on india in the year 1962 and for the second time in the year 1965. India had hardly recuperated when it was struck by drought india also had a stint of recession. Due to recession, famine and drought, India did not pay much heed to long term goals. Instead, it responded to the need of the hour. It started taking measures to overcome the crisis.
2. Food grains production increased to bring about self sufficiency in production. with this attempt, gradually a gap was created between the people of the rural areas and those of the urban areas
3. The need for foreign reserves was felt. This facilitated growth in exports. Imports substitution drew considerable attention. All these activities widened the industrial platform.
The fifth plan prepared and launched by DD Dhar proposed to achieve two main objectives:
1. Removal of 'poverty' (Garibi Hatao), and
2. Attainment of self reliance.
Other objectiives and issues of the fifth plan wear:
Reducing the discrepancy between the economic development at the regional, national, international levels it emphasized on putting the economic growth at par with each other.
Improving the agricultural condition by implementing land reform measure
Improving the scope of self-employment through a well integrated program
Reducing the rate of unemployment both in the urban and the rural sectors
Encouraging growth of the same scale industries.
Enhancing the import substitution in all spheres including chemicals, paper, mineral and capital equipment industries.
Applying policies pertaining to finance and credit in the industrial sector
It stressed on the importance of a labour intensive production technology in india.
Period plan Remarks
1951-52 to 1955-56 First Plan priority given to agriculture and irrigation
1956-57 to 1960-61 Second plan Development of basic and heavy industries
1961-62 to 1965-66 Third plan
Emphasis on basic industries contained but agriculture and allied sectors wear allocated 35% of the outlay. Long-term development of india's economy
1966-67 to 1968-69 Annual plans plan holiday period-chinese and pakistani wars.
1969-70 to 1973-74 fourth plan
Emphasis on growth with distribute justice. it brought n a 'scientific temper' to indian agriculture
1974-75 to 1977-78 fifth plan
priority given to poverty eradication and self-reliance. Terminated a year earlier by the janata government which introduced 'rolling plan' concept
1978-79 to 1979-80 Annual plan Launched by the janata government
1980-81 to 1984-85 sixth plan
Poverty alleviation was the priority of this plan. Originally launched by the janata government. However, abandoned by the new Government and a revised plan for 1981-85 subsequently aproved.
1985-86 to 1989-90 seventh plan
Strong emphasis on creation of productive employment as well as in rural subsidiary occupations. Food work and productivity wear the basic priorities.
1990-91 to 1991-92 Annual plan
Basic thrust was maximisation of employment and social transformation.
1992-93 to 1996-97 Eight h plan
Emphasis on alleviating poverty and removing unemployment, providing a safety net for those who will be affected by the structural adjustment programme. Faster economic growth, faster growth of manufacturing, agricultural and allied sectors significant growth rates in the exports and imports, improvement in trade and current account deficit, and significant reduction in central govt's fiscal deficit.
1997-98 to 2001-02 Ninth plan
focus on 'Growth with social justice and 'Equality'. priority to agriculture and rural development accelerating growth rate of economy, food and nutritional security for all; containing growth rate of population; empowerment of such as SC/ST'S backward class and minorities etc. promoting and development participatory institutions, co-operatives and self-help groups
2002-03 to 2006-07 Tenth plan
Priority to enhancement of well being and Eradication of Regional imbalances
2007-08 to 2011-12 Eleventh plan
It is aimed at faster and inclusive growth in all sector
Plan holiday refers to the break between the two five year plans. Between third and fourth plans these where the gap of three years. This gap is the five years plan holiday in the history of indian planning. Besides the fifth plan was also terminated one year earlier due to change of government at center. Also, these was the two years gap between the seventh plan and the eighth plan (1990-92)
These objective were to be achieved through promotion of high rate of growth. better distribution of income and a very significant growth in the domestic rate of savings. the plan was terminated in
(instead of 1979)
when janata government came into power. The fifth five year plan commenced on
and extended till
objective of the fifth year plan was to increase the level of employment, reduce poverty and to attain self- sufficiency in agriculture.
Sixth five year plan is also referred to as the janata government plan and it was revolutionary since it marked a change from the Nehruvian model of five year plans.
Increase in national income
Modernization of technology
Ensuring continuous decrease in poverty and unemployment
Population control through family planning etc.
The actual expenditure in the sixth plan stood at Rs 1,09,291.7 crore (current price) as against the envisaged total public sector outlay of Rs 97,500 crore (1970-80 prices) accounting for a 12 per cent increase in norinal terms. Average annual growth rate targeted for the plan was 5.2 percent
The seventh plan emphasized policies and programs which aimed at a basic priorities, VIZ, food, work and productivity within the frame work of basic tenets of planning.
To achieve growth, equity and social justice, self reliance, improved efficiency and productivity.
To accelerate the production of food grains;
To increase employment opportunities;
To ensure relative price stability.
Major Achievements
It was a great success, the economy recorded 6% growth rate against the targeted 5%.
Foodgrains production during the seventh plan grew by 3.23 percent as compared to a long-term growth rate of 2.68 percent during 1967-68 to 1988-89.
To reduce unemployment and consequently, the incidence of poverty, special programmes like jawahar Rozgar Yojana wear initiated in addition to the already existing programmes.
Due recognition was also accored to the role of small scale and food processing industries can play in this regard
Annual plan
The Eighth Five Plan (1990-95) could not take off due to the fast changing political situation at the center. The new government which is assumed power at the center by ne 1991 decided that the Eighth five year plan would commence on 1 April 1992 and that 1990-91 and 1991-92 should be treated as separate annual plans. Formulated within the frame work of the earlier approach to the eighth five year plan (1990-95), the
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