Objectives of planning in India

Phase I : growth oriented development (1951-65)

1.First FYP (1951-56) A repair plan (due to the severe damage by famine 43, and

partition ,47) A Harrod- Domar model of development economics. FYP had a target of 2.1% growth in NI Priority given to agriculture sector. Finally resulted in 3.6% growth in NI. Successful plan.

2. Second FYP (1956-61) The Mahalanobis development strategy plan An import substitution led growth A metal and machine strategy Developing strong base for initiating the process of long term growth High priority to industrialization Emphasis on development of capital goods industries against consumer goods industries. Rapid development of public sector Aimed at 4.5% growth although achieved 4.2% grwoth in NI Demerits Wrong assessment of food situation & fast growth of industrialization Price rise Foreign exchange problem

3. Third FYP (1961-66) Kept basic element of industrial strategy along with stressing on agriculture sector. Emphasis on public sector. Promotion in infrastructural facilities like irrigation projects, rail & road transportation, coal , power projects and industries. Aimed at 5.6% growth in NI and self sufficiency in food grains and expanding basic industries to meet future requirements. Demerit 2 consecutive years of bad harvest (1965-67) War with China in 1962 and with Pakistan in 1965. Drought in 1965-66 followed by another in 1966-67. Devaluation of rupee.

Result Increased dependency on imports and depressed the growth of economy. Growth rate came down to 2.8%. Too much distress in the economy as a result planning was abandoned for three years. (there were 3 annual plans from 1966-69)

Phase II : equity oriented development (1966-90) 1. Annual plans (1966-69) Emphasis on technological reforms in agriculture. Development of HYV seeds, chemical fertilizers, commercial sources of energy & controlled water supply. Introduction of price support policy which made agricultural prices downwardly rigid. New agriculture strategy (NAS) or the green revolution stressed on the use of industrial inputs in agriculture which made agriculture- Industrial linkage two-way.

2. Fourth FYP (1969-74)

Emphasized on growth with stability. Reducing fluctuations in agricultural productions. Reducing dependence on foreign assistance. Aimed at 5.7% growth in NI. Demerits Poor monsoon conditions and shortage of critical inputs(power) Actual achievement of only 3.2%.

3. Fifth FYP (1974-79) No radical or bold changes in this plan. Stress on elimination of poverty. Aimed at a growth of only 4.4% . 4.7% growth was achieved due to erratic growth in agriculture. 4. Sixth FYP (1980-85) this plan centered around fuel & food. The petrochemical & related industries and the consumer durables were the engines in contrast to metals and machines of Mahalanobins period. Emphasis on growth and its trickle down effect to reach the poor. Special programs directed towards the poor like short term

 Short -term wage employment in rural areas.

Aimed at 5.2% growth.

Merits Targets were achieved. Good agricultural performance. Rapid growth in service sector.

Seventh FYP (1985-90)

Focus on human resource development Eg. Education, technical tanning & health. Expect for 32 industries, all industries were delicensed by 1988. Focus on inward development model. Attack on poverty, unemployment, regional imbalance. Extending green revolution to other areas, emphasizing on productivity of rice in eastern region. Aimed at a growth of 5 % . Merits Excellent harvest Recorded growth of 5.3%

Phase III: objective of having growth with social justice (1991 onwards) 1. Eighth FYP (1992-97) Aimed at extending economic reforms & building a sound foundation for growth. Focus on export promotion through high comptitiveness. Tariffs were lowered. Quantitative restrictions were removed. Trade & foreign investment liberalization measures were removed. Efforts to improve efficiency in operations of public sector enterprises were made. Efforts were made to encourage farmers into agribusiness.

 It was realized that efficiency & growth are important

instruments to remove poverty. Efforts were made to control population growth through dynamic family welfare program. Human development was stressed. Aimed a growth rate of 5.6% and finally achieved 6.5% growth. 2. Ninth FYP (1997-2002) Growth with social justice with equity. Recognition of link between rapid growth and improvement in quality of life . People oriented planning hence the emergence of general people in planning like panchayat raj institutions, Cooperative institutions& self help groups.

 Aimed at a growth of 6.5% and achieved only 5.5%.

Demerits East Asian crisis in 1997-98. Increase in oil prices in 2000-01. World economic slowdown. Natural disasters like Orissa cyclone & the Gujarat earthquake. Two consecutive year of poor planning in agriculture.

3. Tenth FYP (2002-07) To develop strategies that would enable the private sector to reach its full potential for raising production, jobs and income levels in society Agriculture development that ensured widest spread of benefits to the rural poor. Continuing & expanding programs to supplement the impact of development for benefit of those target groups which had not sufficiently benefitted from normal growth process. Aimed at achieving 8% but actually achieved 7.6%.

Plan objective
Plan First FYP Second FYP Third FYP Fourth FYP Fifth FYP Sixth FYP Seventh FYP Eighth FYP Ninth FYP Tenth FYP Eleventh FYP Focus area Agricultural development Import Substitution led growth Economic sufficiency technological reforms in agriculture Elimination of poverty Food & Fuel strategy HRD LPG model Growth with social justice & equity Growth with social justice & equity Faster, broader & inclusive growth.

Achievements of planning

Satisfactory growth
Modernization Self- reliance

Providing equity and social justice

failures of planning Poor std of living Inflation Unemployment Less growth in agriculture sector.

 Inequality in distribution of income & wealth. Inefficient administration. Shortfall in target realization. Unbalanced growth. Inferior development of infrastructure.