5 Year plans of India

Plan
Spells out how the resources of a nation
should be put to use.
Has some general goals as well as specific
objectives, which are to be achieved within a
specified period of time.
History of Five year Plans
Borrowed the concept of five-year plans from the
former soviet union, the pioneer in national planning
Jawaharlal Nehru was impressed with the
remarkable successes in industrialization achieved by
the USSR in their initial five year plans
India has an extensive network setup to formulate 5-
year plans under the supervision of the planning
commission
Why to Plan
Some of the problems necessitated need for an
immediate plan:
Vicious circle of poverty
Low Per Capita Income
High Rate of Growth of Population.
Low Level of Literacy.
Backward Technology.
Foreign Trade.
Need for Rapid industrialization
Objectives of Planning
Central objective - raise the standard of living of
the people
To increase per capita and NI
Higher level of employment
Growth with social justice
Increasing industrial output
To remove bottlenecks in agriculture, manufacturing
industry
Reduction of inequality in income
Modernization
Self- reliance
Stages in Planning
Formulation- by planning commission. In this stage,
planning commission prepares draft that goes to
National development council. The council then
endorse the draft, and it is forwarded to Parliament.
Adoption- By Parliament
Approval- After the approval of Parliament only, the
draft becomes the planned document.
Execution-By executive
Supervision- By Officials
Pre-conditions of Planning
Collection of Statistical Data- If at collection stage
data is incorrect or irrelevant or collected half
heartedly then economic planning wont be effective
at all.
Economic Organization
Government Setup
Public Cooperation- Citizen must provide every
information so that government can formulate
policies for their betterment.

Planning Commission
Setup in 1950
Jawaharlal Nehru -the first chairman

Current Structure
1. Chairman - Dr. Manmohan Singh
2. Deputy Chairman- Shri Montek Singh
Ahluwalia
3 Minister of State- Shri M.V. Rajshekharan
Planning Commission Divisions
Planning Areas is divided under the following sectors:
Agriculture
Infrastructure
Social Sector
Other sectors/ Areas
5 year plans
First plan (1951-1956)- Javaharlal Nehru
Second plan (1956-1961)- Prasanta Chandra
Third plan (1961-1966) -
Fourth plan (1969-1974)- Indira Gandhi
Fifth plan (1974-1979)- Morarji Desai
Sixth plan (1980-1985)- Rajiv Gandhi
Seventh plan (1985-1989)
Period between 1989-91
Eighth plan (1992-1997)
Ninth Plan (1997 - 2002)
Tenth plan (2002-2007)
Eleventh 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.

Eleventh plan (2007-2012)


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 points
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

REAL STORY
3
rd
plan
Target GDP 5.6% Achieved GDP 2.84%
2
nd
plan
Target GDP 4.5% Achieved GDP 4.27%
1st plan
Target GDP 2.1% Achieved GDP 3.6%
6
th
plan :
Target GDP 5.2% Achieved GDP 5.66%
5
th
plan
Target GDP 4.4% Achieved GDP 4.80%
4
th
plan
Target GDP 5.7% Achieved GDP 3.30%
9
th
plan
Target GDP 6.5% Achieved GDP 5.35%
8
th
plan
Target GDP 5.6% Achieved GDP 6.78%
7
th
plan
Target GDP 5.0% Achieved GDP 6.01%
11
th
plan
Target GDP 10%
????
10
th
plan
Target GDP 8% Achieved GDP 7.8%
Country 1960s 1970s 1980s 1990s 2000-2006
Brazil 5.9 8.5 3.0 1.7 3.1
China 3.0 7.4 9.8 10.0 9.5
India 4.0 2.9 5.6 5.7 7.0
Indonesia 3.7 7.8 6.4 4.8 4.9
Korea 8.3 8.3 7.7 6.3 5.2
Mexico 6.8 6.4 2.3 3.4 2.9
Philippines 5.1 5.8 2.0 2.8 4.8
S.Africa 6.1 3.3 2.2 1.4 4.1
Thailand 7.8 7.5 7.3 5.3 5.0
Real GDP Growth
Source World Development Indicators,World Bank
DEMOGRAPHIC INDICATORS
1996 2001 2006 2011
Population
(million)

934.22

1012.39

1094.13

1178.89
Urban
Population
(%)

27.23

28.77

30.35

31.99
Sex Ratio(
males for
100
females)

107.9

107.2

106.6

106.0
Projection of national poverty ratio
1996-97 2001-02 2006-07 2011-12
Rural 30.55 18.61 9.64 4.31
Urban 25.58 16.46 9.28 4.49
Total 29.18 17.98 9.53 4.37
Literacy rates
18.33%
28.90%
34.45%
43.57%
52.21%
65.38%
79.90%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
1951 1961 1971 1981 1991 2001 2009
percentage of literates
percentage of literates
Conclusion
Economic Planning help in mobilizing and
allocating the resources in desired manner.
Objective of economic planning is to reduce
inequality, economic growth, balanced
regional growth, modernization.
Each five year plan aims at achieving certain
target. Five year plan constitute the steps
toward the fulfillment of objectives of
economic planning