INTRODUCTION

PLANNING IN INDIA

It is a rational, wise and scientific method for achieving certain social economic
goals and objective.

The planning process in India as it is formulated has three distinctive

components

 A long term perspective plan

 A five year plan

 Annual plan

A long Perspective plan

The main purpose is to indicate the desired directions of economic activities to

serve as pointers in formulating the operational target that go onto five year plan

Five year plan

 That is the plan document constructed on the basis of recommendations

made by a large number of working groups which deals with the major
sector of economic activities. It lays down strategies, objectives, growth
rate, sectoral target.

 Every five year plan has two component

 A central component

 A state component

Annual plan

The annual development plan of a country is called the annual plan.

OBJECTIVES OF INDIAN PLANNING

 To increase production to the maximum possible extent so as to achieve higher

level of national and per capita income.

 To achieve full employment

 To reduce inequalities of income and wealth

 To set up a socialist society based on equality and justice and absence of

exploitation.

PLANNING COMMISION

 Planning Commission was set up by a Resolution of the Government of India in

March 1950

 The Planning Commission was charged with the responsibility of making

assessment of all resources of the country, augmenting deficient resources,
formulating plans for the most effective and balanced utilisation of resources and
determining priorities.

 The 1950 resolution setting up the Planning Commission

outlined its functions as-

 Make an assessment of the material, capital and human resources of the

country, and investigate the possibilities of augmenting such of these resources
as are found to be deficient in relation to the nation’s requirement;

 Formulate the plan for the most effective and balanced utilization of country's
resources;

 On a determination of priorities, define the stages in which the Plan should be

carried out and proIndicate the factors which are tending to retard economic
development, and determine the conditions 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 when required.

NATIONALDEVELOPMENT COUNCIL

 NDC is a committee working closely with the Planning commission.

 It is presided over by the Prime Minister and is composed of Union Cabinet

Ministers ,Chief Ministers of states and UT’s and members of planning
commission.

FUNCTION

 To prescribe guidelines for the formulation of the national plan

 To consider the national plan as formulated by planning commission

 To consider important questions of social and economic policy affecting national

development

 To review working of plan from time to time.

In Short, NDC has a decisive role in the formulation & follow-up of the execution
of the National Plan

FORMULATION OF PLANS

First Stage

General approach to formulation

 Preparation of a document by examination of the state of the economy, an

appraisal of past trends in production and the rate of growth in relation to
the long term view of the economy.

 Preliminary Conclusions of these are submitted to the Cabinet & the NDC.

 On their approval by Commission to the Central Cabinet and National

Development Council, the document is circulated for country-wide debate.

Second Stage

Studies that lead to physical content of the plan

  Planning commission constitutes groups for each sector which review the
situation in their respective fields, make relevant assumptions and indicate
the target of production to be achieved. Commission holds discussions
with Union Ministers, State Governments and Union territories.

 Commission prepares a draft plan on the basis of the studies & submitted
to the NDC. After their approval, this draft plan is published for public
consideration and debate.

 Comments and suggestions from Parliament & public are incorporated in

the final document and the document is presented to Parliament for final
approval.

EVALUATION SETUP

I. Program evaluation organization [PEO] –

Established in 1952 to take up independent diagnostic evaluation of development

(Central & CSS) programs for the assessment of -

 Physical & financial performance.

 Effectiveness of Implementation & Delivery System.

 Impact on target groups

 PEO headquarters located at Planning Commission.

II. State Evaluation Organization

 Each State has an evaluation Cell attached to Planning Unit.

 Some States have large evaluation units but most of them have a cell comprising
of a few staff members.

 Some conduct a large number (20) of evaluation studies each year while most
conduct 1-2 studies in a year.

 SEOs evaluate mostly state level schemes.

 Findings are sent to:

- State Planning Department

- Implementing Agencies PEO

FOURTH FIVE YEAR PLAN(1969-1974)

At this time Indira Gandhi was the Prime Minister. The Indira Gandhi
government nationalized 14 major Indian banks and the Green
Revolution in India advanced agriculture. In addition, the situation in
East Pakistan (now Bangladesh) was becoming dire as the Indo-
Pakistani War of 1971 and Bangladesh Liberation War took place.

OBJECTIVES ACHIEVEMENTS

 To reform and  Great advancement has been

restructure govts made with regards to india’s
expenditure. national income.

 To increase growth in  Considered as one of the

exports. emerging power.

 To alter the socio  Served as a stepping stone for

economic structure of the economic growth food
society. grains production increased.

 Growth of national
income by 5.5 %.
 STRATEGIES ADOPTED

PANCHAYATI RAJ SYSTEM :

 INCREASE EMPLOYMENT

PROBLEMS FACED:

 A gap was created between the people of rural areas

and those of the urban areas.

 Due to recession goals were not achieved.

FIFTH FIVE YEAR PLAN(1974-1979):

Stress was laid on employment, poverty alleviation, and justice. The
plan also focused on self-reliance in agricultural production and
defence. In 1978 the newly elected Morarji Desai government rejected
the plan. Electricity Supply Act was enacted in 1975, which enabled the
Central Government to enter into power generation and transmission.

OBJEC ACHIEVEMENTS
TIVES
 Inflation control.  Indian exports crossed 18%,
and the large earnings from
these exports have further
 Allocation of increased the Indian foreign
24.3% in exchange reserves.
industries.

 Bombay High had shot up

the commercial production
of oil in India.
 5.5 % growth in
national income.

 Food grains production was

above 118 million tons due
to the improvement of
infrastructural facilities.

PROBLEMS FACED:
SIXTH FIVE YEAR PLAN:
The sixth plan also marked the beginning of economic
liberalization. Price controls were eliminated and ration shops
were closed. This led to an increase in food prices and an increase
in the cost of living. This was the end of Nehruvian Plan and Rajiv
Gandhi was prime minister during this period.

OBJECTIVES ACHIEVEMENTS

 To improve  Speedy industrial

productivity level development
 To initiate  Emphasis on the
modernization for information technology
achieving economic sector.
and technological self
reliance  Self sufficiency in food
science and technology
 To control poverty and
also made a significant
unemployment
advance.
 To develop indigenous
energy usage  Several successful
programs to improving
 To promote improved public health.
quality of life of the
citizens

 To introduce minimum
needs program for the
poor

 To initiate family
planning
SEVENTH FIVE YEAR PLAN:

The Seventh Plan marked the comeback of the Congress Party to

power. The plan laid stress on improving the productivity level of
industries by upgrading of technology.

The main objectives of the 7th five year plans were to establish growth
in areas of increasing economic productivity, production of food grains,
and generating employment opportunities.

As an outcome of the sixth five year plan, there had been steady
growth in agriculture, control on rate of Inflation, and favourable
balance of payments which had provided a strong base for the seventh
five Year plan to build on the need for further economic growth. The
7th Plan had strived towards socialism and energy production at large.
The thrust areas of the 7th Five year plan have been enlisted below:

• Social Justice
• Removal of oppression of the weak
• Using modern technology
• Agricultural development
• Anti-poverty programs
• Full supply of food, clothing, and shelter
• Increasing productivity of small and large scale farmers
• Making India an Independent Economy
 OBJECTIVES ACHIEVEMENTS

 Anti-poverty program.  Social justice

 Improved facilities for  Using modern technology

education to girls.
 Agriculture developments
 The government under
looked to increase  Anti-poverty programs
productivity of oil  Fully supply of foods clothing,
seeds,fishes,pulses,milk and food.
,egg.
 Increasing productivity of small
 Transports and large scale farmers.

 Making Indian an independent

economy.

PROBLEMS FACED:

 1989-1991 was a period of political instability in india

and hence no plan was implemented

 In 1991 india faced a crisis in foreign exchange(forex)

reserves.
 8th Plan Five Year Plan(1992-
1997)
Objectives are :
• For managing the change, the transition from a centrally planned economy to a
market led economy, without fearing our socio-cultural fabric.
• To check the increasing population growth by creating mass awareness
programs .
• To encourage growth and diversification of agriculture
• To strengthen the infrastructural facilities.
• To place greater emphasis on role of private initiative in the development of the
industrial sector .

Modernization of industries was a major highlight of the Eighth Plan. Under this plan,
the gradual opening of the Indian economy was undertaken to correct the
burgeoning deficit and foreign debt. Meanwhile India became a member of the World
Trade Organization on 1 January 1995.This plan can be termed as Rao and Manmohan
model of Economic development. The major objectives included, controlling population
growth, poverty reduction, employment generation, strengthening the infrastructure,
Institutional building,tourism management, Human Resource development, Involvement
of Panchayat raj, Nagarapalikas, N.G.O'S and Decentralisation and people's
participation. Energy was given prority with 26.6% of the outlay. An average annual
growth rate of 6.78% against the target 5.6% was achieved.

STRATEGIES :

Price Policy –

Constitutes fiscal and monetary components

Foreign trade Policy –

Derive the maximum advantage from world markets

Opening up of the economy to international competition

9th five year plan (1997-2002)
Ninth Five Year Plan India runs through the period from 1997 to 2002 with the main aim of
attaining objectives like speedy industrialization, human development, full-scale
employment, poverty reduction, and self-reliance on domestic resources.

Background of Ninth Five Year Plan India: Ninth Five Year Plan was formulated amidst the
backdrop of India's Golden jubilee of Independence.

objectives

 to prioritize agricultural sector and emphasize on the rural development

 to generate adequate employment opportunities and promote poverty reduction
 to stabilize the prices in order to accelerate the growth rate of the economy
 to ensure food and nutritional security
 to provide for the basic infrastructural facilities like education for all, safe drinking
water, primary health care, transport, energy
 to check the growing population increase
 to encourage social issues like women empowerment, conservation of certain
benefits for the Special Groups of the society
 to create a liberal market for increase in private investments

During the Ninth Plan period, the growth rate was 5.35 per cent, a percentage
point lower than the target GDP growth of 6.5 per cent.
Description

The main aim of attaining objectives like speedy industrialization, human

development, full-scale employment, poverty reduction, and self-reliance on
domestic resources.

Background of Ninth Five Year Plan India: Ninth Five Year Plan was formulated
amidst the backdrop of India's Golden jubilee of Independence.

The value of agricultural output is targeted to increase at annual rate of 4.5 percent
in the Ninth Plan. The targeted annual growth rates in the value of agricultural output
for the Tenth and Eleventh Plans are 5.3 percent and 5.1 percent respectively
 In order to meet this demand, sugarcane production has to be targeted to increase at
an annual rate of 4 percent in the Ninth Plan and 6.2 and 6.1 percent in the Tenth and
Eleventh Plans respectively

High growth rate in agriculture in the long run can be sustained only by broadening the
regional base of agriculture. This will be have to achieved through devoting greater
amount of resources to rain-fed areas, ensuring more intensive and efficient utilization
of irrigation facilities and continuous flow of improved technology and farm practices.

Land degradation is one of major problems in India. Soil erosion is the most important
cause of land degradation. It is estimated that nearly 45 percent of geographical area of
India is affected by serious soil erosion through ravine and gully, water logging, shifting
cultivation, etc.

It was found that the work opportunities generated along this growth path were such
that the unemployment rate would actually increase from 1.5 per cent in the base year
of the Ninth Plan to 2.5 per cent in the terminal year of the perspective period (2011-12).
In other words, maintenance of the Eighth Plan growth performance is likely to be
inadequate not only to reduce the level of unemployment but also to absorb the
additions to the labor force

The principal responsibility for generating adequate work opportunities to reduce

unemployment in the country and to improve the quality of life rests with the
Government, which would need to reduce its existing revenue deficit in the budget and
eventually bring it to a surplus.

The Planning Commission has been estimating the incidence of poverty at the national
and state levels as an integral component of formulating appropriate growth strategies

For the projections, the household component of the total private consumption has been
worked out for three different commodity groups, viz., food grain, other food and non-
food.
Achievements :

• A comnines effort of public, private,and all levels of government

• Ensure the growth of india’s economy.

• Service sector showed fast growth rate

STRATEGIES :

Productive Employment

– Increase of amenities to lower farmers Rural development more

effective.

Panchayati Raj–

Preparation of plan for economic development and social justice

To levy, collect and appropriate taxes, duties, tolls and fees.

10th five year plan-2002-2007
To transform the country into fastest growing economy of the world

Target an annual economy growth of 10%

The 10th Five Year Plan (2002-2007) targets at a GDP growth rate of 8% per annum.
Taking note of the inabilities of the earlier Five Years Plans, especially that of the 9th
Five Year Plan, the Tenth Five Year Plan decides to take up a resolution for immediate
implementation of all the policies formulated in the past. This amounts to making
appeals to the higher government authorities, for successful completion of their
campaigns associated with the rapid implementation of all past policies.

The primary aim of the 10th Five Year Plan is to renovate the nation extensively,
making it competent enough with some of the fastest growing economies across the
globe. It also intends to initiate an economic growth of 10% on an annual basis. In fact,
this decision was taken only after the nation recorded a consistent 7% GDP growth,
throughout the past decade.

The 7% growth in the Indian GDP is considered to be considerably higher than the
average growth rate of GDP in the world. This enabled the Planning Commission of
India to extend the GDP limit further and set goals, which will drive India to become one
of the best industrial countries in the world, to be clubbed and recognized with the
world’s best industrialized nations.

Like all other Five Year Plans, the 10th Five Year Plan is also devised, executed and
supervised by the Planning Commission of India.

Human and social development

The mortality rate of children must be reduced to 45 per 1000 livings births and 28 per
1000 livings births by 2007 and 2012 respectively

The rate of literacy must be increased by at least 75%, within the tenure of the Tenth
Five Year Plan

Reducing the poverty ratio by at least five percentage points, by 2007

Making provision for useful and lucrative employments to the population, which are of
the best qualities
The rate of literacy must be increased by at least 75%, within the tenure of the Tenth
Five Year Plan

The social net

By 2007, there should be a decrease in gender discriminations in the spheres of wage

rate and literacy, by a minimum of 50%

The mortality rate of children must be reduced to 45 per 1000 livings births and 28 per
1000 livings births by 2007 and 2012 respectively

Industry and services

Industry, minerals energy, information technology, tourism, real estate.

Increasing the mobility of all the available financial resources of India, and optimizing
them as well
Setting up of a state-of-the-art infrastructure for all the existing industries in India.
Encourage the initiative of capacity building within the Indian industrial sector
Creating a friendly, amiable and pleasant investment environment in India
Encouraging sufficient transparency in the corporate sectors of India
Introduction of reforms in the industrial sectors, which are more investor-friendly in
nature

Forests and environment

Taking up of extensive deforestation measures, by planting more trees and enhance the
forest and tree areas to 25% by 2007 and 33% by 2012

Special area programs

All main rivers should be cleaned up between 2007 and 2012

Ensuring persistent availability of pure drinking water in the rural areas of India, even in
the remote parts

The alarming rate at which the Indian population is growing must be checked and fixed
to 16.2%, between a time frame of 2001 and 2011

Schooling to be compulsory for children

According to the Plan, it is mandatory that all infants complete at least five years in
schools by 2007.
Eleventh Five-Year Plan, 2007–2012
The eleventh plan has the following objectives:

1. Income & Poverty

 Accelerate GDP growth from 8% to 10% and then maintain at 10% in the
12th Plan in order to double per capita income by 2016-17
 Increase agricultural GDP growth rate to 4% per year to ensure a broader
spread of benefits
 Create 70 million new work opportunities.
 Reduce educated unemployment to below 5%.
 Raise real wage rate of unskilled workers by 20 percent.
 Reduce the headcount ratio of consumption poverty by 10 percentage
points.
2. Education
 Reduce dropout rates of children from elementary school from 52.2% in
2003-04 to 20% by 2011-12
 Develop minimum standards of educational attainment in elementary
school, and by regular testing monitor effectiveness of education to ensure
quality
 Increase literacy rate for persons of age 7 years or above to 85%
 Lower gender gap in literacy to 10 percentage point
 Increase the percentage of each cohort going to higher education from the
present 10% to 15% by the end of the plan
3. Health
 Reduce infant mortality rate to 28 and maternal mortality ratio to 1 per
1000 live births
 Reduce Total Fertility Rate to 2.1
 Provide clean drinking water for all by 2009 and ensure that there are no
slip-backs
 Reduce malnutrition among children of age group 0-3 to half its present
level
 Reduce anaemia among women and girls by 50% by the end of the plan
4. Women and Children
 Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by
2016- 17
 Ensure that at least 33 percent of the direct and indirect beneficiaries of all
government schemes are women and girl children
 Ensure that all children enjoy a safe childhood, without any compulsion to
work
5. Infrastructure
 Ensure electricity connection to all villages and BPL households by 2009
and round-the-clock power.
 Ensure all-weather road connection to all habitation with population 1000
and above (500 in hilly and tribal areas) by 2009, and ensure coverage of all
significant habitation by 2015
 Connect every village by telephone by November 2007 and provide
broadband connectivity to all villages by 2012
 Provide homestead sites to all by 2012 and step up the pace of house
construction for rural poor to cover all the poor by 2016-17
6. Environment
 Increase forest and tree cover by 5 percentage points.
 Attain WHO standards of air quality in all major cities by 2011-12.
 Treat all urban waste water by 2011-12 to clean river waters.
 Increase energy efficiency by 20 percentage points by 2016-17.