SUNDER DEEP COLLEGE OF MANAGEMENT

TECHNOLOGY

Five Year Plan FAILURE & ACHIVEMENT

PRESENTED BY :Kundan Yadav PGDM 3rd Trimester SDCMT PRESENTED TO :Mrs. Nevidita Singh Asst. Professor SDCMT

What is a PLAN ?

Plan is a careful attempt to spell out, how the resources of a country should be put to use. It has some general and specific goals, which are to be achieved within a specific period of time. The general goals of a Plan are Growth, Modernization, Full Employment, Selfreliance And Equity. But all Plans may not give equal importance to all of them.

First Five Year Plan (1951-55) Total budget: 206.8 billion (INR) or USD$23.6 billion. This plan was based on Harrod Domar's model.

OBJECTIVE

ACHIEVEMENTS

The standard of living Community and agriculture development Energy and irrigation Communications and transport Industry Social services Target of GDP growth 2.1 per year

GDP 3.6% per year Evolution of good Irrigation system Established Bhakra Dam (Sutlej River, between Punjab & Himachal Pradesh) and Hirakud Dam (Mahanadi River, Orissa).
ATOMIC ENERGY COMMISSION was formed.

Improvement in Roads, Civil aviation, Railways, Telegraphs, Posts, Manufacture of fertilizers Electrical equipment.

Failure of 1st Plan

Development

of only a few industries

Private

industry had not developed

Problem

of poverty remained.

Investment

during this period was not sufficient to absorb new entrants into labour market

Second Five Year Plan (1956-1961) Total Budget- Rs. 4,800 crore This plan was based on the Mahalanobis model OBJECTIVES
To increase by 25% the national income To make the country more industrialized To increase employment opportunities so that every citizen gets a job The amount was allocated among various sectors: Power and irrigation Social services Communications and transport Miscellaneous Target Growth: 4.2%

ACHIEVEMENTS

5 steel plants at Bhilai, Durgapur, and Rourkela. A Hydro-electric Power Project Production Of Coal Increased More Railway Lines Land Reform Measures Improved The Living Standards Of The People The Large Enterprises In Seventeen Industries Were Nationalized

Failure of 2nd year plan

Eliminate the importation of consumer goods High tariffs Low quotas or banning some items License were required for starting new companies This is when India got its license raj, the bureaucratic control over the economy When a business was losing money the government would prevent them from shutting down

Third Five Year Plan (1961-1966)

OBJECTIVES

More stress to agriculture subsidies. Effective use of country's resources. To increase the national income by 5% per year. To increase the production of agriculture so that the nation is self sufficient in food grains. To provide employment opportunities for every citizen of the country. To establish equality among all the people of the country.
Target Growth: 5.6%

ACHIEVEMENTS Organizations formed

Panchayat

Zila

Parishads State electricity boards State secondary education boards

Emphasis on
Oil

conservation Irrigation Dry farming Fertilizer & cement plants Green revolution Actual Growth: 2.2%
PMs Jawaharlal Nehru Gulzarilal Nanda Lal Bahadur Shastri

Failure of 3rd year plan

At

that time India face Sino-Indian War of 1962. In 1965-1966, India fought a [Indo-Pak] War with Pakistan. The war led to inflation. India face the heavy problem of severe drought in 1965.

4th Five Year Plan (1969 to 1974), Total Budget Rs. 24880 Crores
OBJECTIVES To reform and restructure Govts expenditure agenda (defense became one major expense) To facilitated growth in exports To alter the socio economic structure of the society Target Growth: 5.7% ACHIEVEMENTS Nationalized 14 major Indian banks. Considered as one of the emerging powers Served as a stepping stone for the economic growth Food grains production increased through the Green Revolution in India Actual Growth: 3.30%

Failure of 4th year plan

A gap

was created between the people of the rural areas and those of the urban areas. to recession, famine and drought, India did not pay attention on long term goals.

Due

5th Five Year Plan (1974-1979)

OBJECTIVES

ACHIEVEMENTS

To reduce social, regional, and economic disparities To enhance agricultural productivity To check rural and urban unemployment To encourage self-employment Production support policies in the cottage industry sector To develop labor intensive technological improvements To focused on self-reliance in agricultural production and defense. Target Growth: 4.4%

Food grain production was above 118 million tons due to the improvement of infrastructural facilities. Bombay High had start up the commercial production of oil in India. Electricity Supply Act was enacted in 1975 The Indian national highway system was introduced Tourism also expanded Actual Growth: 5.0%

Failure of 5th year plan

In 1978 the newly elected Morarji Desai government rejected the plan. The INTERNATIONAL ECONOMY was in trouble. This had a negative impact on the Indian economy Prices in the energy and food sector skyrocketed and as a consequence inflation became inevitable The international economy was in a trouble Food, oil, and fertilizers where prices high.

Sixth Five Year Plan

(1980-1985) Total Budget Rs. 158710 Crores.
OBJECTIVES

ACHIEVEMENTS

To improve productivity level To initiate modernization for achieving economic and technological self-reliance To control poverty and unemployment To develop indigenous energy sources and efficient energy usage To promote improved quality of life of the citizens To introduce Minimum Needs Program for the poor To initiate Family Planning Target Growth: 5.2%

Speedy industrial development Emphasis on the information technology sector Self sufficiency in food Science and technology also made a significant advance Several successful programs on improvement of public health Government of India investments in the Indian healthcare sector Actual Growth: 5.4%

Failure of 6th year plan

During

this time the Prime Minister was Rajiv Gandhi and hence industrial development was the emphasis of this plan some opposed it specially the communist groups, this slowed down the pace of progress.

OBJECTIVES

7th Five Year Plan 1985-1989

ACHIEVEMENTS

Anti-poverty program Improved facilities for education to girls The government undertook to increase productivity of Oilseeds,Fruits,Vegetables Pulses, Fish Egg,Meat,milk. Communications Emergence of informatics, and hooking up of telecommunications with computers Transport Inland waterways, product pipelines, civil aviation, coastal shipping Target Growth: 5.0%

Social Justice Removal of oppression of the week 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 Actual Growth: 5.7%

Failure of 7th year plan

During

1989-91 was a period of political instability in India and hence no five year plan was implemented 1991, India faced a crisis in foreign exchange reserves.

In

8th Five Year Plan (1992-1997)

This plan was based on Rao (P.V. Narasimha Rao) and Manmohan model of Economic development.
OBJECTIVES
To

ACHIEVEMENTS
Rise

generate full scale employment Promote social welfares 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 Target Growth: 6.78%

in the employment level Poverty reduction Self-reliance on domestic resources Self-sufficiency in agricultural production India became a member of the WTO on 1 January 1995 Launched India's free market through privatization and liberalization Actual Growth 5.6%

Ninth Five Year Plan 1997-2002

OBJECTIVES

To generate adequate employment opportunities To stabilize the prices 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 encourage social issues like women empowerment To create a liberal market for increase in private investments

ACHIEVEMENTS

A combined effort of public, private, and all levels of government Ensured the growth of India's economy. Service sector showed fast growth rate

Tenth Five Year Plan (2002-2007)

OBJECTIVES

ACHIEVEMENTS
o Establish National Scheduled Tribes Financial And Development Corporation o Pokhran nuclear tests o National Highway Development Project o Pradhan Mantri Gram Sadak Yojana o Sarva Shiksha Abhiyan o National Technical Research Organization o Indo-US civilian nuclear agreement o Actual rate 7%

Fastest growing economy of the world. All children to be in school by 2003. Reduction in Poverty ratio from 26% to 21% Decadal population growth to reduce from 21.3% in 1991-2001 to 16.2% by 2001-11 Reducing GENDER GAPS in literacy and Wages rate by 50%. Increase in FOREST cover from 19% in 1999-2000 to 25% in 2007 Target rate 8%

Eleventh five year plan (2007-2012) OBJECTIVES

o

o
o

o o o o o o o o

On the eve of the 11th Plan, our economy is in a much stronger position than it was a few Years ago. Target agriculture growth at 4% per year. The private sector, including farming, micro, small and medium enterprises (MSMES) and the corporate sector, has a critical role to play in achieving the objective. National Rural Employment Guarantee Act (NREGA), Right to Information Act. Unique ID, Right of Children to Free and Compulsory Education Act. Reduce educated unemployment to below 5%. 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. Ensure Electricity connection to all villages and BPL households Connect every village by telephone Exports grew by 7.4% (target was 14.55%) and imports grew by 6.6% (target was 12.2% p.a.)

MACRO ECONOMIC INDICATORS FOR THE 11th FIVE YEAR PLAN

SI. NO.
1.

MACROECONOMIC INDICATORS
Growth Rate of GDP (%) a. Agriculture b. Industry c. Services

10th PLAN (ACTUAL)

7.2 1.7 8.3 9.0 27.8 6.7

11th PLAN (AVERAGE)

9.0 4.1 10.5 9.9 35.1 10.2

2.

Investment Rate (% of GDP) a. Public

b. Private
3. Domestic Savings Rate (% of GDP) a. Household b. Corporate c. PSEs d. Government 4. 5. 6. Current Account Balance (% Of GDP) Government Revenue Balance (% Of GDP) Government Fiscal Balance (% Of GDP)

21.1
28.2 22.8 4.5 4.2 -3.2 0.2 -4.4 -8.0

24.9
32.3 22.0 6.1 3.0 1.2 -2.8 -0.2 -6.0

th 12

five year plan(2012-17)

A target

of GDP growth in the 9 percent to 9.5 percent range An increase in literacy rates to 100 percent between the plans period from 2012 to 2017 An increased expenditure on health from 1.3 percent to 2.0 percent of GDP 12th five-year plan focus a lot for rural development and growth Planning Commission should focus on policy and governance reforms Coal India may invest up to Rs 40,000 crore in 12th Five Year Plan Forest area to increase by 10 crore hectare in 12th five year plan Centre pushes for research universities in 12th plan

Sectorial Growth Rates - Previous Plans and Target for 12th Plan
9th PLAN 10th PLAN 11th PLAN 12th PLAN 9.00% 9.50% 2.2 2.3 3.2 4 4.2 4 6 4.7 8 8.5 3.3 9.3 7.7 9.8 11.5 4.8 6.8 6.4 8.5 9 7.1 11.8 7.8 10 11 7.5 9.6 7 8.9 13.8 12.5 8 8 7.7 5.5 4.3 7.9 11.2 9.9 5.3 7.8 9.4 9.3 9.9 10.7 9.4 8.2 7.4 10 11 10 8 9 9.6 10 11.2 10.5 8 9.5 10.9 10

1 2 3 4 5 6 7 6&7 8 9

Agriculture, Forestry & Fishing Mining & Quarrying Manufacturing Elect. Gas & Water Supply Construction Trade, Hotels & Restaurant Transport, Communication & Storage Trade, Hotels & Restaurant + Transport, Communication & Storage Financing, Insurance, Real Estate & Community, Social & Personal services Total GDP Industry Services

Thank You