A Detailed Introduction To the Fives Year Plans of India

1st Five Year Plan:(1951-56)

1. It was presented by the then Prime Minister Jawaharlal Nehru in the Indian Parliament on 8th December, 1951.
2. The motto was to improve the standard of living of the people by effective use of the country's resources.
3. Nearly Rs2069 crores were spent on the following development areas.,

• Community and agriculture development
• Energy and irrigation
• Communications and transport
• Industry
• Land rehabilitation
• Social services
• Miscellaneous issues The target set for the growth in the gross domestic product was 2.1percent every year. In reality, the actual achieved with regard to gross domestic product was 3.6 percent per annum. This is a clear indication of the success of the 1st five year plan.

4. During the period of India first five year plan, many projects related to irrigation had been started, such as the Mettur Dam, Bhakra Dam, and Hirakud Dam.

5. The provisions have been made for the rehabilitation of agricultural workers who were landless. Apart from that financial allocation was also made for conservation of soil, experiments, and training in co-operative organizations. Increased provisions have also been made for the improvement of roads, civil aviation, railways, telegraphs, and posts. For the development of the basic industry which includes the manufacture of fertilizers and electrical equipment, provisions have been made in the Indian first five year plan.

2nd Five Year Plan(1956-61):

1. Motto to increase and carry forward the development that had been started by the first five year plan in India.

2. Increase by 25% the national income

3. Make the country more industrialized

4. Increase employment opportunities so that every citizen gets a job

5. second five year plan focused on industry - more specifically on the heavy industry. The domestic production of industrial goods in the public sector was encouraged by the second five year plan in India. The total amount for development given allocated under the second five year plan in India was Rs. 4,800 crore. It was spent for the following areas,

• Mining and industry
• Community and agriculture development
• Power and irrigation
• Social services
• Communications and transport
• Miscellaneous

6. During the time of second five year plan India, 5 steel plants in Jamshedpur, Durgapur, and Bhilai had been established, apart from a hydro-electric power project which was also undertaken and implemented. The production of coal increased during this period. Also, more railway lines were added in the north-east part of the country, during the Indian second five year plan.

7. During the term of the 2nd five year plan, Atomic Energy Commission came into being. The Commission was established in the year 1957. During the same period, Tata Institute of Fundamental Research was born. The institute conducted several programs to search for talented individuals. These individuals would eventually be absorbed into programs related to nuclear power.

3rd Five Year Plan:(1961-66)
1. To make a more determined effort to develop the nation, carrying forward the legacy set by the previous two five year plans.

2. The aim of which is to increase the quality of life of the citizens through effective use of the country's resources.
3. 3rd five year plan laid considerable stress on the agricultural sector. However, with the short lived Sino Indian War of 1962 India diverted its attention to the safety of the country. Again, during the period 1965 to 1966, owing to Green Revolution, once again agriculture attracted attention.
4. Due to the Chino Indian War, India witnessed increase in price of products. The resulting inflation was cost push in nature. Many dams were constructed during this period.
5. The following were the focused areas.,

• 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

6. Various organizations such as the Panchayat and Zila Parishads were set up at the block and district level in order to increase rural development. In India, the third five year plan have also laid emphasis on soil conservation, irrigation, afforestation, and dry farming. Many fertilizer and cement plants were built during the period of the third five year plan India.
Three Annual Plans:

Due to external war situations (with China in 1962 and with Pakistan in 1965), the government could not continue with regular five year plans. So, the 4th five year plan could not be framed but instead, 3 separate Annual plans were made in 1966-67, 1967-68 and 1968-69. The main focus was to concentrate on yearly short plans and executions. So, there is no specific goals and aims. But the themes of previous plans were involved and continued as goals and aims with a proper planning continuation.

4th Five Year Plan:(1969-1974)

1. The 4th five year plan of India also served as a stepping stone for the economic growth of the nation

2. India had to reform and restructure its expenditure agenda, following the attack on India in the year 1962 and for the second time in the year 1965. India had hardly recuperated when it was struck by drought. India also had a stint of recession.

3. Due to recession, famine and drought, India did not pay much heed to long term goals. Instead, it responded to the need of the hour. It started taking measures to overcome the crisis.

4. Food grains production increased to bring about self sufficiency in production. With this attempt, gradually a gap was created between the people of the rural areas and those of the urban areas.

5. The need for foreign reserves was felt. This facilitated growth in exports. Import substitution drew considerable attention. All these activities widened the industrial platform.

5th Five Year Plan:(1974-1979)
1. The 5th Five Year Plan commenced on 1974 and extended till 1979. Objective of the Fifth Year Plan The objective of the 5th Five Year Plan was to increase the level of employment, reduce poverty and to attain self sufficiency in agriculture.

2.This time was International Turmoil was happening in world economy. The international economy was in a turmoil, which had a great impact on the economy of both, developed and developing countries of the world.

3. The main changes were perceived in sectors such as food, oil, and fertilizers where prices sky-rocketed. As a result of this, attaining self-reliance in food and energy became a top priority. During this period, the Indian economy was affected by several inflationary pressures.

4. Food grain production was above 118 million tons due to the improvement of infrastructural facilities like the functioning of the power plants and the rise in the supply of coal, steel, and fertilizers.

5. In 1974-75, Indian exports crossed 18%, and the large earnings from these exports have further increased the Indian foreign exchange reserves.

6. Prices in the energy and food sector skyrocketed and as a consequence inflation became inevitable. Therefore, the priority in the fifth five year plan was given to the food and energy sectors .

7. The Following were the focused areas.,

Reducing the discrepancy between the economic development at the regional, national, international level. It emphasized on putting the economic growth at par with each other.

Improving the agricultural condition by implementing land reform measures.

Improving the scope of self-employment through a well integrated program.

Reducing the rate of unemployment both in the urban and the rural sectors.

Encouraging growth of the small scale industries.

Enhancing the import substitution in the spheres including chemicals, paper, mineral and equipment industries.

Applying policies pertaining to finance and credit in the industrial sector.

Stressed on the importance of a labour intensive production technology in India.

6th Five Year Plan:(1980-1985)

1. prioritized speedy industrial development, with special emphasis on the information technology sector.

2. One of the major hindrances in the way of further development in this period was the boom in the Indian population. However, several successful programs on improvement of public health and epidemic control were also undertaken to reduce infant mortality and increase life expectancy.

3. The transport and communication system also improved under this Plan. The National Highways were all built during this time .

4. Apart from the construction of new highways, the condition of the roads were meliorated. This helped in the betterment of the traffic system in India. During this time the Indian currency was devalued and this led to a dramatic increase in the number of foreign travelers.

5. The following were the focusing areas.,

• 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 and needy with an emphasis to reduce the discrepancies in income and wealth accumulation
• to initiate Family Planning Programs in order to check the growing population trends
• to increase the growth rate of the economy
• to concentrate on the promotion of efficient use of resources
• to improve productivity level
• to initiate modernization for achieving economic and technological self-reliance

7th Five Year Plan:(1985 - 1990)
1. This five year plan was to upgrade the industrial sector and enable India to establish itself as one of the developed countries of the world.

2. This Plan was released under the National Development Council of India.

3. The main aim was to generate more scope of employment for the people of India, to produce more in terms of food which would lead to an overall increase in productivity.

4. It strong base on which it could built the superstructure of industrial development for the betterment of India's economic position.

5. strove to bring about a self-sustained economy in the country with valuable contributions from voluntary agencies and the general populace.

6. Special care was taken to spread education among girls, enhance telecommunication within the country.

7. The following were the focus points.,

Reducing poverty in India

Assuring the essentials of food, shelter and clothing to the people

Striving to achieve independence as per the Indian economy is concerned

Introduction and application of modern technology

Justice meted out to people from various social stratas

Improving the position of the weak in the Indian society Help the small as well as the large farmers to increase their productivity.

8th Five Year Plan:(1992-1997)
1. Attaining objectives like modernization of the industrial sector, rise in the employment level, poverty reduction, and self-reliance on domestic resources.

2. There was great political instability in India which hindered the implementation of any five years plan for the following two years after the Seventh Five Year Plan. This period is characterized by extreme FOREX reserve crisis and introduction of liberalization and privatization in Indian economy.

3. Agriculture was the greatest contributor to Indian GDP growth rate. Industries also made use of agricultural produce as inputs in their production process.

4. Following areas were focused.,to check the increasing population growth by creating mass awareness programs

• to encourage growth and diversification of agriculture
• to achieve self-reliance in food and produce surpluses for increase in exports
• to strengthen the infrastructural facilities like energy, power, irrigation
• to increase the technical capacities for developed science and technology
• to modernize Indian economy and build up a competitive efficiency in order to participate in the global developments.
• to prioritize the specific sectors which requires immediate investment
• to generate full scale employment
• to promote social welfare measures like improved healthcare, sanitation, communication and provision for extensive education facilities at all level.

9th Five Year Plan:(1997-2002)

1. Attaining objectives like speedy industrialization, human development, full-scale employment, poverty reduction, and self-reliance on domestic resources.

2. As a result in the Ninth Five Year Plan India, the emphasis was on human development, increase in the growth rate and adoption of a full scale employment scheme for all.

3. Public and Private relationship was given most important towards developmental growth.

4. Following areas were focused.,

• 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
• Industrialization at a rapid pace
• Reduction in poverty level
• Gaining self-sufficiency on local resources
• 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.

10th Five Year Plan:(2002-2007)
1. Aims to transform the country into the fastest growing economy of the world and targets an annual economic growth of 10%

2. This GDP growth of 7% is much higher than the world's average GDP growth rate.

3. 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.

4. The 7% growth in the Indian GDP is considered to be considerably higher that the average growth rate of GDP in the world.

5. Following areas were focused.,
i. All main rivers should be cleaned up between 2007 and 2012
ii. Reducing the poverty ratio by at least five percentage points, by 2007 .

* According to the Plan, it is mandatory that all infants complete at least five years in schools by 2007.
* By 2007, there should be a decrease in gender discriminations in the spheres of wage rate and literacy, by a minimum of 50%.
* 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
* The rate of literacy must be increased by at least 75%, within the tenure of the Tenth Five Year Plan.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.
* Setting up state-of-the-art infrastructure
* Capacity building in industry
* Corporate transparency