FIVE YEAR PLANS

NATIONAL DEVELOPMENT COUNCIL—IS THE FINAL APPROVER OF FIVE YEAR PLANS IN INDIA

Five Year Plans in India

Plan	Notes
First Plan (1951 - 56)	It was based on Harrod-Domar Model.
	Community Development Program launched in 1952
	Focus on agriculture, price stability, power and transport
	It was a successful plan primarily because of good harvests in the last two years of the plan
Second Plan (1956 - 61) Target Growth: 4.5% Actual Growth: 4.27%	Also called Mahalanobis Plan named after the well known economist
	Focus - rapid industrialization
	Advocated huge imports through foreign loans.
	Shifted basic emphasis from agriculture to industry far too soon.
	During this plan, prices increased by 30%, against a decline of 13% during the First Plan
Third Plan (1961 - 66) |Target Growth: 5.6% Actual Growth: 2.84%	At its conception, it was felt that Indian economy has entered a take-off stage. Therefore, its aim was to make India a 'self-reliant' and 'self-generating' economy. Land ceiling legislation was introduced by state govt during this plan
	Based on the experience of first two plans, agriculture was given top priority to support the exports and industry.
	Complete failure in reaching the targets due to unforeseen events - Chinese aggression (1962), Indo-Pak war (1965), severe drought 1965-66
Three Annual Plans (1966-69) Plan holiday for 3years.	Prevailing crisis in agriculture and serious food shortage necessitated the emphasis on agriculture during the Annual Plans
	During these plans a whole new agricultural strategy was implemented. It involving wide-spread distribution of high-yielding varieties of seeds, extensive use of fertilizers, exploitation of irrigation potential and soil conservation.
	During the Annual Plans, the economy absorbed the shocks generated during the Third Plan
	It paved the path for the planned growth ahead.
Fourth Plan (1969 - 74) Target Growth: 5.7% Actual Growth: 3.30%	Main emphasis was on growth rate of agriculture to enable other sectors to move forward
	First two years of the plan saw record production. The last three years did not measure up due to poor monsoon.
	Influx of Bangladeshi refugees before and after 1971 Indo-Pak war was an important issue
Fifth Plan (1974-79) Target Growth: 4.4% Actual Growth: 3.8	The fifth plan was prepared and launched by D.D. Dhar.
	It proposed to achieve two main objectives: 'removal of poverty' (Garibi Hatao) and 'attainment of self reliance'
	Promotion of high rate of growth, better distribution of income and significant growth in the domestic rate of savings were seen as key instruments
	The plan was terminated in 1978 (instead of 1979) when Janta Party Govt. rose to power.
Rolling Plan (1978 - 80)	There were 2 Sixth Plans. Janta Govt. put forward a plan for 1978-1983. However, the government lasted for only 2 years. Congress Govt. returned to power in 1980 and launched a different plan.
Sixth Plan (1980 - 85) Target Growth: 5.2% Actual Growth: 5.66%	Focus - Increase in national income, modernization of technology, ensuring continuous decrease in poverty and unemployment, population control through family planning, etc.
Seventh Plan (1985 - 90) Target Growth: 5.0% Actual Growth: 6.01%	Focus - rapid growth in food-grains production, increased employment opportunities and productivity within the framework of basic tenants of planning.
	The plan was very successful, the economy recorded 6% growth rate against the targeted 5%.
Eighth Plan (1992 - 97)	The eighth plan was postponed by two years because of political uncertainty at the Centre
	Worsening Balance of Payment position and inflation during 1990-91 were the key issues during the launch of the plan.
	The plan undertook drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6%
	Some of the main economic outcomes during eighth plan period were rapid economic growth, high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit.
Ninth Plan (1997- 2002) Target Growth: 6.5% Actual Growth: 5.35%	It was developed in the context of four important dimensions: Quality of life, generation of productive employment, regional balance and self-reliance.
Tenth Plan (2002 - 2007)	Goals:
	To achieve 8% GDP growth rate BUT ACTUAL GROWTH IS 7.8%
	Reduction of poverty ratio by 5 percentage points by 2007.
	Providing gainful high quality employment to the addition to the labour force over the tenth plan period.
	Universal access to primary education by 2007.
	Reduction in gender gaps in literacy and wage rates by atleast 50% by 2007.
	Reduction in decadal rate of population growth between 2001 and 2011 to 16.2%.
	Increase in literacy rate to 72% within the plan period and to 80% by 2012.
	Reduction of Infant Mortality Rate (IMR) to 45 per 1000 live births by 2007 and to 28 by 2012.
	Increase in forest and tree cover to 25% by 2007 and 33% by 2012.
	All villages to have sustained access to potable drinking water by 2012.
	Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012.
Eleventh Plan (2007 - 2012)	Goals:
	Accelerate GDP growth from 8% to 10%.annual growth of the agriculture sector ---3.3%
	Create 70 million new work opportunities and reduce educated unemployment to below 5%.
	Raise real wage rate of unskilled workers by 20 percent.
	Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12. 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%.
	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. Reduce malnutrition among children between 0-3 years to half its present level. Reduce anaemia among women and girls by 50%.
	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 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
	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.

Govt surpasses 11th plan electricity generation target

The targets for electricity generation under the 11th five year plan of and the rural electrification

target under Bharat Nirman have been surpassed as against target of 855 billion units, India has

achieved generation of 875 billion units. Also against the target of electrification of 1,00,000

villages 1,03,000 villages have already been electrified.

Nevertheless, in the field of capacity addition, it fell a little short of the 11th Five year plan target of 62,000 megawatt.

India’s installed capacity is now 1,93,592 megawatts.

The Union Cabinet on 4 October 2012 approved the 12th five-year plan with its aim to renew Indian economy and use the funds from government in improving the facilities of education, sanitation and health. This plan has seen a three-fold increase in the budget constraints when compared to that of the 11th five-year plan. The plan would infuse a huge fund of Rs 47,70,000 lakh crore and this will help to accomplish the economic growth to an average level of 8.2 percent.

12th five-year plan is guided by the policy guidelines and principles to revive the following Indian economy, which registered a growth rate of meager 5.5 percent in the first quarter of the financial year 2012-13.

The plan aims towards the betterment of the infrastructural projects of the nation avoiding all types of bottlenecks.  The document presented by the planning commission is aimed to attract private investments of up to US$1 trillion in the infrastructural growth in the 12th five-year plan, which will also ensure a reduction in subsidy burden of the government to 1.5 percent from 2 percent of the GDP (gross domestic product). The UID (Unique Identification Number) will act as a platform for cash transfer of the subsidies in the plan.

The plan aims towards achieving a growth of 4 percent in agriculture and to reduce poverty by 10 percentage points, by 2017.

The formulated draft of the plan would be presented for final approval before the National Development Council (NDC) that is headed by the Prime Minister having the Cabinet Ministers and Chief Ministers on board. National Development Council (NDC) is the apex decision making body and authority to signal the five year plan in the nation.

Five year plans in India with their objectives

First five-year plan- (1951-1956) – The plan aimed at development of the agricultural sector including irrigation system and dams.
Second five-year plan- (1956-1961) - The second plan aimed towards the heavy industry, mainly in the Public Sector.
Third five-year plan- (1961–1966) – This was the plan that saw many ups and downs and change in the focus, affected by wars and drought. At first the plan aimed at agriculture and wheat production, but the 1962 war with China shifted the projection of aim towards stabilizing the defence industry and strengthening it. This war was followed with Pakistan war in 1965. Further, the drought of 1965 shifted the attention of the plan from defence industry to price stabilization that occurred due to heavy inflation. The decided growth target for this plan was 5.6 percent and the growth witnessed was 2.4 percent.
Fourth five-year plan- (1969–1974) – This plan aimed towards green-revolution and nationalization of 14 banks in India.
Fifth five-year plan- (1974–1979) – The plan aimed at poverty alleviation, employment and justice along with self-reliability on defence and agriculture. Morarji Desai Government rejected the plan in 1978.
Sixth five-year plan- (1980–1985) – Economic liberalization and price control was the aim of this plan.
Seventh five-year plan- (1985–1990) – Aim of this plan was directed towards increase in productivity in all types of industries to generate more employment.
Eighth five-year plan- (1992–1997) – The nation in this phase suffered from a great economic instability and thus the plan aimed at privatisation and liberalisation.
Ninth five-year plan- (1997–2002) – High-speed industrialisation, along with human development, poverty decline, complete employment and self-sufficiency in cases of domestic resources.
Tenth five-year plan- (2002–2007) – This plan aimed at poverty reduction by 5 percent and attain a growth rate of 8 percent in GDP.
Eleventh five-year plan- (2007–2012) – The eleventh plan was based on different objectives that includes education, income and poverty, women and children, infrastructure, health and safeguarding the environment.

Infrastructure Debt Fund will be based on a tripartite
deal
2012-10-09 01:10:26 Puneet
The recently approved Infrastructure Debt Fund (IDF) will be based on a tripartite
agreement b/w developer, lender (bank) and the IDF. The decision has been taken
to infusing greater funds into infrastructure development in the country. Loans by the
banks would be refinanced by IDF so that the lenders have free funds for more
lending. The fund would try to gather resources from domestic and off-shore
institutional investors, especially insurance and pension funds.
What will IDF do here?
Initially, infrastructure projects are financed by banks or a consortium of banks.
Such projects need long-term funding of 20-25 years, while banks cannot fund
beyond 5-7 years. IDF s will provide the long-term funds for the remainder of the life
of the project.
Who will regulate IDF?
An IDF may be established either as a trust or company. A trust based IDF (Mutual
Fund) would be regulated by SEBI, while an IDF created as a company (NBFC)
would be regulated by the RBI.
The 12th Plan (2012-17) has pegged the requirement of infrastructure fund at
$1 trillion.






The Union Cabinet approved the XII Plan (2012-17) document focused at attaining
annual average economic growth rate of 8.2%, down from 9% targeted earlier.
The Plan document will now need final approval from the highest decision making
body, the National Development Council (NDC).
Besides, the XII Plan aims to achieve 4% growth of agriculture sector.
The growth target for the manufacturing sector has been set at 10%.









Major focus on water management during 12th five yr plan: Montek
The Deputy Chairman of the Planning commission Mr. Montek Singh Ahluwalia held that there will be a
major focus on water management during 12th Five Year Plan as India needs focussed approach to
manage efficient use of available water. For the same a meeting of Chief Ministers is being called soon to
bring a national focus on the issue.

1 First Plan (1951 – 56) It was based on Harrod-Domar Model.
Community Development Program was launched in 1952.
Emphasized on agriculture, price stability, power & transport.
It was more than a success, because of good harvests in the last two years.

2 Second Plan (1956 – 61) Also called Mahalanobis Plan after its chief architect.
Its objective was rapid industrialization.
Advocated huge imports which led to emptying of funds leading to foreign loans. It shifted basic emphasis from agriculture to industry far too soon. During this plan, price level increased by 30%, against a decline of 13% during the First Plan.

3 Third Plan (1961 – 66) At its conception time, it was felt that Indian economy has entered a take-off stage. Therefore, its aim was to make India a ‘self-reliant’ and ‘self-generating’ economy.
Also, it was realized from the experience of first two plans that agriculture should be given the top priority to suffice the requirement of export and industry.
Complete failure due to unforeseen misfortunes, viz. Chinese aggression (1962), Indo-Pak war (1965), severest drought in 100 years (1965-66).

4 Three Annual Plans (1966-69) Plan holiday for 3years. The prevailing crisis in agriculture and serious food shortage necessitated the emhasis on agriculture during the Annual Plans.
During these plans a whole new agricultural strategy involving wide-spread distribution of High-Yielding Varieties of seeds, the extensive use of fertilizers, exploitation of irrigation potential and soil conservation was put into action to tide-over the crisis in agricultural production.
During the Annual Plans, the economy basically absorbed the shocks given during the Third Plan, making way for a planned growth.

5 Fourth Plan (1969 – 74) Main emphasis on agriculture’s growth rate so that a chain reaction can start.
Fared well in the first two years with record production, last three years failure because of poor monsoon.
Had to tackle the influx of Bangladeshi refugees before and after 1971 Indo-Pak war.

6 Fifth Plan(1974-79) The fifth plan prepared and launched by D.D. Dhar proposed to achieve two main objectives viz, ‘removal of poverty’ (Garibi Hatao) and ‘attainment of self reliance’, through promotion of high rate of growth, better distribution of income and a very significant growth in the domestic rate of savings.
The plan was terminated in 1978 (instead of 1979) when Janta Govt.came to power.

7 Rolling Plan (1978 – 80) There were 2 Sixth Plans. One by Janta Govt. (for 78-83) which was in operation for 2 years only and the other by the Congress Govt. when it returned to power in 1980.

8 Sixth Plan (1980 – 85) Objectives: Increase in national income, modernization of technology, ensuring continuous decrease in poverty and unemployment, population control through family planning, etc.

9 Seventh Plan (1985 – 90) The Seventh plan emphasized policies and programs which aimed at rapid growth in food-grains production, increased employment opportunities and productivity within the framework of basic tenants of planning.
It was a great success, the economy recorded 6% growth rate against the targeted 5%.

10 Eighth Plan (1992 – 97) The eighth plan was postponed by two years because of political upheavals at the Centre and it was launched after a worsening Balance of Payment position and inflation during 1990-91.
The plan undertook various drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6%
Some of the main economic performances during eighth plan period were rapid economic growth, high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit.

11 Ninth Plan (1997- 2002) It was developed in the context of four important dimensions: Quality of life, generation of productive employment, regional balance and self-reliance.

12 Tenth Plan (2002 – 2007) To achieve the growth rate of GDP @ 8%.
Reduction of poverty ratio to 20% by 2007 and to 10% by 2012.
Providing gainful high quality employment to the addition to the labour force over the tenth plan period.
Universal access to primary education by 2007.
Reduction in gender gaps in literacy and wage rates by atleast 50% by 2007.
Reduction in decadal rate of population growth between 2001 and 2011 to 16.2%.
Increase in literacy rate to 72% within the plan period and to 80% by 2012.
Reduction of Infant Mortality Rate (IMR) to 45 per 1000 live births by 2007 and to 28 by 2012.
Increase in forest and tree cover to 25% by 2007 and 33% by 2012.
All villages to have sustained access to potable drinking water by 2012.
Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012.

Plan Target Actual
First Plan (1951 – 56) 2.9% 3.6%
Second Plan (1956 – 61) 4.5% 4.3%
Third Plan (1961 – 66) 5.6% 2.8%
Fourth Plan (1969 – 1974) 5.7% 3.3%
Fifth Plan (1974 – 79) 4.4% 4.8%
Sixth Plan (1980 – 85) 5.2% 6.0%
Seventh Plan (1985 – 90) 5.0% 6.0%
Eighth Plan (1992 – 97) 5.6% 6.8%
Ninth Plan (1997 – 2002) 6.5% 5.4%
Tenth Plan (2002 – 2007) 8.0%