Five Year Plans in Brief

Indian Economy for IAS by Pratik

Gupta
1 st Five Year Plan- 1951-56
o m)
• Growth rate actual 3.6 (target 2.1) il. c
a
gm
2@
n 98
• Lack of data k u ma
r r os
ha

r(
ma
• Based on model – HARROD-DOMAR model. Ro
s h an
K u

f o r
• Indian Economy e r son
a l i sed

is p
• Infrastructural Development. o c um
en
t

h is d
• Migrants
T

• Tenancy restructuring.
• AGRICULTURE
2nd Five Year Plan- 1956-61
Growth rate actual 4.21 (target 4.5)
- Nehru - P.C. Mahalanobis Model Priority:
- Heavy industries, PSU
- Foreign Aid o m)
c
ail.
gm
- Long term planning 98
2@
n
ha
- Top-down r r os
u ma
k
- Labor productivity u ma
r(
K
an
- Heavy goods imports substitution Ro
s h
f o r
- Shifting people from agriculture to industry a l i sed
r son
- Industrial and Transport Plan t is p
e
n
me
- It faced several problem o c u
h is d
• Forex shortage T

• BOP crisis
• Long gestation project
• Deficit financing
• Inflation
• Food shortage
• Creating large scale inequality in society
3 rd Five Year Plan- 1961-66
m)
Actual growth 2.72 (target 5.6) gm
ail. co

@
• Excess utilization of internal resources os
ha
n 9 82
r r
• Self-reliant and self-generating economy. r( k u ma
u ma
• Transport, Communication, Social Sector. Ro
s h an
K

r
• Rely on foreign aid for Industrialization nalised f
o

o
• Debt obligation of earlier plan. e nt
is p ers

• Financial crisis is d oc
um
Th
• Excessive socialist commitment
• Flood
• Drought
• 1962 China war and
• 1965 Pakistan war
1966 to 1967, 1967 to 1968, 1968 to 1969-
Annual Plans
o m)
• Referred as Plan Holiday (though planning process not gm discarded).
il. c
a
2@
n 98
• Some agricultural improvement k u ma
r r os
ha

r(
ma
• It was considered as the period of consolidation. Ro
s h an
K u

f o r
• To get rid of economic crisis created e r son by fall in Agricultural Production.
a l i sed

is p
• To curb inflationary pressure. o c um
en
t

h is d
• Recession Controlled
T

• Economic Strains removed

• Paved way for Fourth Plan
4th Five Year Plan- 1969-74
m)
Actual growth 2.05 (target 5.7) co
ail.
gm
2@
98
• Stability in the economy r r os
ha
n

u ma
• System Planning r( k
u ma
K
h an
• Progressive achievement of Self Reliance.
s
r Ro
o
df
se ali
on
ers
t is p
en
Quick yielding projects preferred
is d oc
um
Th
• War with Pakistan 1971 (Bangladesh)
• Monsoon failure of 1971, 1972, 1973
• Nationalization of Bank
• 1973 oil crisis
• Garibi Hatao of Mrs. Gandhi had load on the exchequer.
5 th five Year Plan- 1974-78 (Stunted Plan)
m)
1978-79, 1979-80 (Rolling Plan) Actual growth 4.83% (target il. c
gm
o
a 4.4%)
2@
• Co-ordination of various plans of govt. r r os
ha
n 98

ma
• More rural oriented u ma
r( k u
K
• Political instability. o r Ro
s h an
f
• Growth for social justice instead of growth r son
a l i sed
with social justice.
e
• Hindu Rate of Growth mysterycuwas me
n t is p
tackled.
• Indira Gandhi introduced 20T point programme
o
h i sd

• Rural Development
• Minimum need programme was also introduced.
• Indigenization.
• Agricultural and SSI was given priority.
6 th Five Year Plan- 1980-85
m)
Actual growth 5.54% (target 5.2%) co
ail.
gm
2@
98
• Doing away of the shortcomings of the previous ma
r r oplan.
sh
a n

k u
• Integration of different sectors of economy
r(
u ma
K
h an
s
Ro
• Concentration of growth rate of secondary a l i sed
f o r
sector.
n
rso
• More export n t is
p e

me
cu
• National Income Th
is d
o

• Poverty and unemployment eradication

• Perspective plan
• Broad banding and liberalization
• Several Poverty Alleviation programs were started
7 th Five Year Plan- 1985-90
Actual growth 6.02 (target 5)
m)
• GDP growth concentration. gm
ail.
co

@
• Secondary sector promotion os
ha
n 9 82
r r
• Refinement in technology ma
r( k u ma
u
• Foreign credibility Ro
s h an
K

r
• Export promotion a l i sed
f o

on
• Education for all. e r s
t is p
en
• Decentralized planning h is d
o c um
T
• Self-sufficiency of food.
• JRY
• Growth, modernization, self-reliance and social justice.
• B.O.P. deteriorated.
• Current account deficit very large.
1990-1991, 1991-1992 – Annual Plans
• Political instability
• Poor status of economy heralding the need for new economic apolicy. il. co m)
gm
• There were both INTERNATIONAL and DOMESTIC SCENARIOS n 98
2@ brewing something

of the nature of the nature of NEW ECONOMIC POLICY u ma

r r os
ha

k
International an
K u ma
r(

h
• Russian Gulf War
s
r Ro
o
e df
lis
• Global recession pe
r so na
Need for India to find new global
c u m en
t is
trading partners
o
Domestic T h is d

• Political Basic requirement of the people.

• Excessive socialist commitment Bunching of loans.
• Erosion of international credibility. Large scale inflation.
• Loss making PSU Fiscal deficit
• Oil Pool Deficit Overvalued rupee.
8 th Five Year Plan- 1992-97
Actual growth 6.68 (target 5.6)
m)
• Sustain improvement in rate of productivity. Indicative and ail. Integrative
co

Planning n 98
2@
gm

ha
• Democratic Decentralization Rural r( k u ma Development
r r os

ma
• HRD s h an Universalization of Education
K u

Ro
• Infrastructural Development particularly a l i sed from private sector participation.
f o r

on
• Liberalization and de-licensing. nt is pe r s
Export promotion by boosting
d o cu
me import
is
• Disinvestment of PSU Th
Dual track planning
• Widening of tax base. Foreign Investment Growth - FII
& FDI
• FOREX Cooperative promotion
• Improvement in saving - particularly long-term contractual saving.
9th Five Year Plan-1997-2002
Growth rate 5.5 (target 6.5)
• Scraping of redundant program.
• Check on expenditure of the govt. Rural Development ail.
co m)
gm
• Focus on delivery and implementation State govt. ha
n 98 participation
2@

r os
• Co-operative federalism Empowerment of women and
r
u ma
k
ar(
n Ksocial depressed groups.
u m
a
sh
Ro
• SAP (Special Action Plan) of P.M. lise df
o r
Pyramidal approach of planning
n a
• Basic Minimum Requirement with focus
nt
is p
e rso
on:
e
• Safe water do
cum
is
• Primary health Th

• Primary education
• Shelter
• Road Connectivity
• Sustainable Development. Checking cost, time, over-runs
10th Plan- 2002-07
Growth Rate (Actual 7.7%) (Target 8%)
o m)
• Focus on slow performing states.
c
ail.
gm
2@
98
• Provide assistance to the states based on performance
n
ha
r r os
u ma
k
• Double per capita income in next ten years an Kumar
(

sh
• Better resource utilization - flow energyisedresources. fo r Ro
l
na
• Quick completion of the ongoingntprojects is p
er so

me
• Social planning Th
is d
o cu

• Gender Budgeting
• Financial Reorganization
• Tribal development
• Backward caste improvement
• Employment generation i.e. 50 million jobs during the plan.
11th Five Year Plan- 2007-12
• Its growth rate target was 8.1% but it achieved only 7.9%.
• Its main theme was “faster and more inclusive growth”
o m)
• It aimed to increase the enrolment in higher education of 18-23 years gm of age group by 2011-12.
ail.
c

2@
• It focused on distant education, convergence of formal, non-formal, os
ha
n 98
distant and IT education
institutions. k u ma
r r
r(
• Rapid and inclusive growth (poverty reduction). an
K u ma
s h
• Emphasis on social sector and delivery of service f o therein.
r Ro
sed
Empowerment through education and skill development.
i
• e r son
a l

is p
• Reduction of gender inequality. c um
en
t
o
• Environmental sustainability. T h is d

• To increase the growth rate in agriculture, industry and services to 4%, 10% and 9%
respectively.
• Reduce total fertility rate to 2.1.
• Provide clean drinking water for all by 2009.
• Increase agriculture growth to 4%.
12 th Five Year Plan- 2012-17
o m)
• Its main theme is “Faster, More Inclusive and Sustainable Growth”.
il. c
a
gm
8 2@
9
an
• Its growth rate target is 8% but actual growth(krate u m arr
os
h
was 7.15%.
r
ma
• In total 25 major thrust areas of government o s h an
K u
to work under 7 broad
areas like growth, poverty and unemployment, education, health,
R
d for
e
alis
infrastructure, environment and service delivery.
o n
p ers
n t is
e m
ocu
is d
Th
Niti Aayog
o m)
The cabinet resolution lists 13 different tasks to NITI Aayog2@gwhich may be
il. c
ma

grouped under four major heads, namely: os

h an
9 8

m arr
(i) fostering cooperative federalism by providing m structured support to
u
a r(k
Ku
states on a continuous basis: a n
o sh
R
for d
lise
(ii) formulation of a strategic visions pand n a
ers
o long-term policies and programme
framework both for the macro en economy and for different sectors;
t i
u m
d oc
i s
(iii) acting as a knowledge and innovation hub and providing research inputs
Th

by undertaking and accessing globally available research; and

(iv) providing a platform for interdepartmental coordination.
STRATEGY FOR NEW INDIA @ 75
• NITI Aayog embarked on a journey of formulating the ‘Strategy for
New India @ 75’. The document defines the strategy for 2022- 23
across 41 areas. ma
il. co m)
g
2 @
n 98
sha
rro
uma
r(k
uma
nK
sha
Ro
for
l i sed
na
e rso
p
nt is
u me
d oc
This
• Growth- Steadily accelerate GDP growth rate to achieve a target of 8%. Raise
investment rates to 36% of GDP. Increase tax-GDP ratio to 22% of GDP. Work with states
to improve ease of business and rationalize land & labour regulations.
• Employment and Labour Reforms- Fully codify central labour laws; Enhance Female
Labour Force Participation to 30%. Enhance skills & significantly increase number of
apprenticeships. Improve data collection on employment. Ease industrial relations to
)
om
a il.c
encourage formalization. n 98
2@
gm

ha
os
• Technology and Innovation- Achieve a position amongar(ktop um
a 50 countries in Global
r r

Innovation Index. Establish an empowered body tohanholistically Ku

m
steer the management of
science. Take steps for enhancing technology commercialization f o r Ro
s
by public funded
institutions. Create a non- lapsable „District aInnovation Fund”.
d
lise
o n
e r s
is p
• Industry- Double the current growthocurate
me
n t
of the manufacturing sector. Develop self-
sufficient clusters of manufacturing
Th competence, with plug & play parks for MSMEs.
is d

Launch a major initiative to push industry to adopt Industry 4.0. Introduce a “single
window” in states providing a single point of contact between investor & government.
• Doubling Farmers Income- Modernize technology, increase productivity & agro-
processing; diversify crops. Increase area under drip irrigation, adoption of hybrid
seeds. Reorient ATMA to include bottom-up planning for developing Strategic Research
Extension Plans. Encourage diversification to High Value Crops.
• Doubling Farmers Income-2- Promote policies that enable farmers to capture a higher
share of value addition. Abolish APMC; Adopt Model APLM Act, Model Contract
Farming Act & Model Land Leasing Act. Formulate a coherent & stable agricultural
export policy. Eliminate ban on agro- exports. Focus on precision agriculture; raise
research spending.
• Doubling Farmers Income-3- Create modern rural infrastructure & oan m)
integrated value
chain system. Accord infrastructure status for agriculture value chains. ail.
c Link production
to processing, set up village-level procurement centres.Develop 2@ export- oriented
g m
98
clusters.
n
ha
r r os
u ma
• Financial Inclusion- Ensure universal access to bankn Kaccounts, insurance & pension.
k
ar(
um
Integrate an Arthik Shiksha Abhiyan in the regular Ro school curriculum. Use technology to
sh
a

improve assessment of credit-worthiness ofnasmall lise df

o r
borrowers & households etc.
Facilitate growth of online digital & paperless is p ers
o banking.
• Housing for All- Provide every family oc with a pucca house, water connection, toilet &
t
m en
u
24x7 electricity supply. Shift focusThof projects to life cycle cost approach instead of cost
i s d

per square foot approach. Use land lying idle with sick/loss making PSUs of
central/state governments. Consider a sub- category under priority sector lending for
affordable houses.
• Travel and Tourism- Increase India’s share in global international tourist arrivals from
1.2% to 3%. Develop 100 “Smart Tourist Destination Sites”. Launch e-visa awareness
campaign; enhance number of annual visits allowed under e- medical visa. Notify
tourism infrastructure projects more than INR 1 crore as ‘infrastructure’.
• Mining- Target average growth of 8.5%; double area explored from current 10% of OGP.
Launch a mission “Explore in India” by revamping minerals exploration & licensing
policy. Provide single window & time- bound environment & forest clearances. Create a
National Mineral Regulatory Authority with subordinate state authorities.
• Energy- Make available 24x7 power to all; achieve 175 GW renewable energy
generation capacity. Bring oil, natural gas, electricity & coal under GST m)
to enable input
tax credit. Promote smart grid & smart meters. Provide mechanism ail. for cost-effective
co

power grid balancing. g m

8 2@
9
h an
• Surface Transport- Double length of national highways;r(kureduce number of road
s
rro
ma
accidents & fatalities by 50%. Complete key projectsn Ke.g. um
a
Bharatmala Pariyojna Phase-1.
Maintain NH assets by adopting a maintenanceomanagement Ro
sh
a
system. Earmark 10% of
annual budget for road & highways maintenance. a l i sed
f r

on
• Railways- Ensure an efficient, safe, cost-effective is p
e r s
& accessible rail network; achieve zero
fatalities. Rationalize fare structuresdo& cu subsidies, & monetize assets to generate
n t
me

revenues. Implement the 22 recommendations

Th
is
of the High-Level Safety Review
Committee chaired by Dr. Kakodkar. Set up an independent regulator for the Indian
Railways.
• Civil Aviation- Increase domestic ticket sales from 103 to 300 million; double air cargo
handled. Ensure time-bound completion of airports under UDAN. Privatize Tier 1 city
airports. Reduce taxes on MRO services & consider granting infrastructure status for
MRO. Promote “Fly-from- India” through the creation of transshipment hubs.
• Ports, shipping and inland waterways- Double the share of freight transported by
coastal shipping & inland waterways. Complete SagarMala project. Open up India‟s
dredging market. Enact new Merchant Shipping Bill. Facilitate access to capital for
inland vessels under priority sector lending.
• Swacch Bharat Mission- Make India open defecation free; change attitudes towards
sanitation & promoting hygiene. Plan behavior change through communication m)
& inter-
personal communication campaigns. Consider expenditure on bio-toilets/bio- ail.
co
digesters
for concession from GST. Nudge ULBs to charge adequate user 98 charges for disposal of
g m
2@

waste & toilet maintenance.

n
ha
r r os
u ma
• Digital Connectivity- Achieve digital connectivity across ma states, districts; deliver
r( k
K u
government services digitally. Explore efficient spectrum Ro
s h an
allocation in large contiguous
blocks. Consider putting in place a credible system i sed
f o r
to track call drops, weak signals etc.
Focus on digital literacy at primary school elevel through the National Digital Literacy
a l
n
rso
Mission. is p
t
m en
u
oc
• Smart cities- Drive job creation &Theconomic growth; improve efficiencies in service
i s d

delivery. Establish a dedicated Metropolitan Urban Transport Authority in 1 million plus

population cities. Launch single- window facility for urban poor to access basic services.
Mainstream the resilient cities approach & integrate it with service levels.
• Logistics- Reduce the logistics cost to less than 10% of GDP from the current level of
14%. Develop an IT- enabled platform for integrating different modes of transport.
Rationalize tariffs & determine prices in an efficient manner across different modes.
Create an overarching body that maintains a repository of all transport data.
• School Education- Universal access & retention; improvement in learning outcomes.
Formulate mechanisms to enforce regulations on teacher qualifications, absenteeism
etc. Rationalize public school structure, undertake individualized tracking. Give children
the option of branching into vocational courses.
• Teacher Education and Training- Enforce minimum standards; improve in- service
training; resolve teacher absenteeism. Establish a committee to develop m)
objective
criteria to recognize institutions. Redesign in- service teacher professional ail.
co
development
programmes. Set up a national electronic teacher registry; develop teacher-demand
g m
2@
98
forecast models for all levels. a n
sh
a rro
m
ku
• Skilling- Increase proportion of formally skilled labour K um from 5.4% of workforce to 15%;
a r (

ensure inclusivity. Establish single regulatory body R o shto lay down minimum standards for
an

players. Initiate vocational education from class alis

e d for
VIII. Streamline claim process for
reimbursement under National Apprenticeship is p ers
o n
Promotion Scheme.
• Higher Education- Increase gross enrolment ratio from 25% in 2016- 17 to 35%. Ensure
t
m en
u
oc
effective coordination of higher education regulators. Compulsorily accredit all higher
i s d
Th
education institutions. Link funding to outcomes through MHRD & Higher Education
Funding Agency.
• Public Health Action- To revamp radically the public & preventive health system. Co-
locate AYUSH services in 50% of PHCs, 70% of CHCs & 100% of district hospitals.
Institute a public health & management cadre in states. Create a focal point for public
health at the central level with state counterparts.
• Primary Health Care- Scale-up a new vision for comprehensive primary health, on the
platform of Health & Wellness Centres. Accelerate the establishment of a network of
150,000 HWCs; Enable mechanisms for rapid scale up. Coordinate action to address
social determinants of health. Catalyse people’s participation for a healthy India: Swasth
Bharat Jan Andolan.
• Human Resources for Health (HRH) Achieve doctor- population ratio m)
of 1:1400 & nurse-
population ratio of 1:500. Reform governance of medical, nursing, ail. dentistry, pharmacy
co

councils. Promote integrative medicine curriculum. Develop acomprehensive HRH policy

g m
8 2@
n9
in states; generate data on HRH. m a rro
sh
ku
• Universal Health Coverage- On platform of PM-JAY,n cover Ku
ma
r (
75% of population with
publicly financed health insurance. Strengthen public Ro
sh
a
sector health facilities e.g.
institutionalize district hospital rankings. Trigger i sed
f o r
private investments in supply deficit
areas through incentives for hospital empanelment. Establish research consortia for
a l
o n
ers
high priority diseases. is p
t
m en
u
oc
• Gender- Enhance FLFP rate to at least 30%; create a work environment without
i s d
Th
barriers. Strengthen legal frameworks to eliminate discrimination against women.
Generate gender- disaggregated data & rank states on key indicators. Provide gender
friendly facilities in upcoming towns & big cities.
• Social Inclusion I- Enable senior citizens, PwDs & transgender persons to participate in
economic development. Revise National Policy for Older Persons; emphasize concept of
‘ageing in own home’. Generate disaggregated data on PwDs. Provide for identification
of transgender persons in government & non-government records.
• Social Inclusion II- Accelerate development of SCs, STs, OBCs, DNTs, NTs, SNTs & minorities
through focused affirmative action. Design schemes narrowly focused on the needs of specific
communities. Establish residential schools in uncovered blocks with facilities for vocational
training. Vest primary responsibility for schemes implemented by Ministry of Minority Affairs
with line ministries.
• Aspirational Districts- Uplift 115 districts currently lagging behind in development co m) parameters.
Create a positive narrative of development by making it a mass movement. Use data to inform
a i l.
gm
2@
decision-making & spur competition among districts. Establish institutional os
h an
9 8
mechanisms for
teamwork between centre, states & districts. r( k u ma
r r

ma
• City Governance- Transform cities into economically vibrant s h an
K u
& environmentally sustainable
habitats. Recognise each city as a distinct unit of the d for economy; develop a quarterly city
R o

dashboard. Articulate a framework for city governance that includes development authorities,
e
n alis
rso
other parastatals etc. Establish a modernmnational framework for spatial planning of cities.
p e
n t is
e
u
oc
• North- East Region- Develop physicalThi connectivity for enhanced trade; focus on waterways,
s d

financial inclusion. Encourage each NER state to draw up a development blueprint. Address
connectivity issues e.g. transit treaties for NER & its neighbours. Promote eco- tourism &
adventure tourism; ensure early completion of irrigation projects.
• Legal, Judicial, Police Reforms- Ensure safety & security of citizens & access to effective legal
systems. Create a repository of all existing central & state laws, rules & regulations. Address
backlog of pending cases e.g. shift part of workload out of regular court system. Create task
force under MHA to skill personnel & identify non-core functions for outsourcing.
• Civil Services Reforms- Establish a reformed system of recruitment, training &
performance evaluation of civil services. Promote an officer-oriented culture & focus on
expanding the number of officers. Alter current system of training to meet job-
outcome oriented goals e.g. managing urban areas. Consider replacing annual
confidential reports with multi stake holder feedback.
• Data-led Policy Making- Ensure timely generation & dissemination ail. of data for
co m)

evidence-based policy-making. Create state data repositoriesan9based 82

@
gm
on guidelines
drawn up by central government. Use tertiary big data collected a rro
sh
by private third parties.
Update government statistical organizations on newKtechnologies. u m
k
m ar(
u
a n
• Water Resources- Provide adequate & safe piped df
o r Ro drinking water & water for sanitation.
sh

Increase the water storage capacity from 253 so na bcm to 304 bcm. Launch a pilot scheme to
lise

irrigate 10 lakh ha with treated waste mwater. Develop recharging zones to make
r
is pe
t
en
groundwater resources sustainable. i s d oc
u
Th
• Land Resources- Strengthen land markets by efficient allocation, secure property rights
etc. States may consider the Model Land Leasing Act, 2016. Implement effectively the
Forest Rights Act in all states. Update & digitize land records in a user-friendly manner.
• Sustainable Development- Reduce PM2.5 to <50; effective implementation of solid
waste management rules. Upscale technologies for crop harvesting & utilization of farm
residue. Encourage nationwide implementation of bio-digester toilets. Convert urban
vacant areas to urban green areas.