Five Year Plan in India
The Indian economy operated on the premise of planning from 1947 to 2017. The Five-Year Plans were developed, executed, and monitored by the Planning Commission (1951-2014) and the NITI Aayog (2015-2017).
It is headed by the prime minister as chairman ex officio, with a deputy chairman nominated by a cabinet minister.
In May 2014, Montek Singh Ahluwalia resigned as deputy chairman of the commission. March 2017 marked the end of the Twelfth Plan’s tenure.
In 1969, the Gadgil formula was adopted in place of the schematic pattern that prior to the Fourth Plan determined how state resources were allocated. State plans have been allocated central assistance based on revised versions of the formula since then.
NITI Aayog is the acronym for National Institution for Transforming India. It has been announced by the ruling government of Narendra Modi in 2014 that the Planning Commission will be dissolved, and replaced by a think tank.
The current government has, however, discontinued the Five-Year Plan, replacing it with a new system. Let’s have a look back at all the Five Year Plans the country has experienced to date.
Year |
First Five Year Plan in India |
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1951-1956 |
Concept |
Assessment |
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The Plan was based on the Harrod-Domar model with a few modifications. It focused primarily on agricultural development. |
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Year |
Second Five Year Plan in India |
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1956-1961 |
Concept |
Assessment |
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This plan was based on the PC Mahalanobis Model made in the year 1953. The emphasis was on industrial development. In 1957, India was hit by a payment crisis after this plan was criticized by many experts. |
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Year |
Third Five Year Plan in India |
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1961-1966 |
Concept |
Assessment |
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This plan is also called ‘Gadgil Yojna’, after the Deputy Chairman of Planning Commission DR Gadgil. The main target of this plan was to make the economy independent. The stress was laid on agriculture and the improvement in the production of wheat. During the execution of this plan, India was engaged in two wars: (1) the Sino-India war of 1962 and (2) the Indo-Pakistani war of 1965. These wars exposed the weakness in our economy and shifted the focus to the defence industry, the Indian Army, and the stabilization of the price (India witnessed inflation). The plan was a flop due to wars and drought. |
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Note: After the first Five-year Plan was launched in 1951, two more were launched until 1965, when the Indo-Pakistan Conflict led to a break in the plans.
In 1969, after three Annual Plans between 1966 and 1969, the fourth Five-year Plan was started after two successive droughts, devaluation of the currency, a general rise in prices, and erosion of resources disrupted the planning process.
Year |
Plan Holidays |
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1966-1969 |
Concept |
Objectives |
Assessment |
Year |
Fourth First Five Year Plan in India |
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1969-1974 |
Concept |
Assessment |
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Under Indira Gandhi’s leadership, it ran from 1969 to 1974. Growth with stability and progress towards self-reliance were the two main objectives of the plan. The Green Revolution was started at the same time as the nationalization of 14 major Indian banks. In 1971, the Indo-Pakistani War and the Bangladesh Liberation War took place. Implementation of the Family Planning Program was among the major targets of the Plan, but it only achieved a growth rate of 3.3% against a target of 5.7%. |
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Year |
Fifth Five Year Plan in India |
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1974-1978 |
Concept |
Assessment |
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Garibi Hatao was the focus of this plan as well as employment, justice, agricultural production, and defence. There were a number of changes made to the Electricity Supply Act in 1975, such as the Twenty-Point Program, the Minimum Needs Programme, and the Indian National Highway System. The overall result of this plan was a 4.8% increase over the target of 4.4%. This plan was terminated in 1978 by the newly elected Moraji Desai government. |
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Year |
Rolling Plan |
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1978-1980 |
Concept |
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The Rolling Plan came into effect from 1978 to 1990 following the end of the fifth Five Year Plan. Congress rejected the Rolling Plan in 1980, and a new Five Year Plan was introduced. Under the Rolling plan, three plans were outlined: (1) for the current year’s budget; (2) for a fixed number of years- 3, 4, or 5; (3) an outlook for long-term goals- 10, 15 or 20 years. The plan has several advantages, such as the fact that the targets could be amended and the projects, allocations, etc. could be varied according to the country’s economy. If the targets could be changed each year, it would be difficult to achieve the targets, resulting in economic destabilization. |
Year |
Sixth Five Year Plan in India |
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1980-1985 |
Concept |
Assessment |
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Economic liberalization by eliminating poverty and achieving technological self-reliance was the basic objective of this plan. According to the report, it was based on the investment Yojna, the changing of infrastructure, and a trend towards growth. |
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Year |
Seventh Five Year Plan in India |
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1985-1990 |
Concept |
Assessment |
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In this plan, there is a focus on establishing a self-sufficient economy, creating opportunities for productive employment, and upgrading technology. Its goal was to increase food grain production, increase employment opportunities, and raise productivity by focusing on ‘food, work, and productivity’.The private sector gained priority over the public sector for the first time. |
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Year |
Annual Plan |
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1990-1992 |
Concept |
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A rapidly changing political situation at the Centre prevented the implementation of the Eighth Plan in 1990, and the years 1990-91 and 1991-92 were treated as Annual Plans. A structural adjustment policy was initiated in 1992, resulting in the launch of the Eighth Plan. |
Year |
Eighth Five Year Plan in India |
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1992-1997 |
Concept |
Assessment |
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The development of human resources, i.e. employment, education, and public health, was given highest priority in this plan. A New Economic Policy was launched by the Narasimha Rao Government during this period. The eight plan period was characterized by rapid economic growth (highest annual growth so far, 6.8%), a high level of agricultural and allied sector growth, a rise in exports and imports, and a decrease in current account deficit. |
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Year |
Ninth Five Year Plan in India |
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1997-2002 |
Concept |
Assessment |
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This plan was created under the leadership of Atal Bihari Vajpayee. This plan focused on “Growth with Social Justice and Equality”. It was launched during the 50th anniversary of India’s independence. The growth rate of this plan was 5.6% instead of the target of 6.5%. |
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Year |
Tenth Five Year Plan in India |
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2002-2007 |
Concept |
Assessment |
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Under the leadership of Atal Bihari Vajpayee and Manmohan Singh this plan was formed. The plan aimed to double India’s per capita income within 10 years. It also aimed to reduce the poverty rate to 15% by 2012. |
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Year |
Eleventh Five Year Plan in India |
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2007-2012 |
Concept |
Assessment |
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This plan was formulated under the leadership of Manmohan Singh. It was drafted by C Rangarajan. Following the UPA’s return to power on the platform of helping the Aam Aadmi (common man), the conference’s theme was “rapid and more inclusive growth.” By the end of the Tenth Plan, India was one of the fastest-growing economies. Foreign investors were keen to invest in India due to the rise in savings and investments. India had responded well to competition in the global economy , as well as the increase in savings and investments. In reality, many groups – especially SCs, STs, & minorities – did not perceive the growth to be sufficiently inclusive, as data on poverty, malnutrition, mortality, current daily employment, etc. illustrates. |
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Year |
Twelve Five Year Plan in India |
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2012-2017 |
Concept |
Assessment |
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During the last year of the Eleventh Plan, the global economy went through a second financial crisis precipitated by the Eurozone sovereign debt crisis. All countries were affected, including India. The economy was estimated to have grown by only 5 percent in the first year of the Twelfth Plan, when growth slowed down to 6.2 percent in 2011-12. To ensure inclusive and sustainable growth, the Twelfth Plan highlights the importance of bringing the economy back to rapid growth. The subtitle of the Twelfth Plan reflects the broad vision and aspirations that it seeks to fulfill: ‘Faster, Sustainable, and More Inclusive Growth’. To achieve inclusiveness, we must reduce poverty, promote gender equality and regional balance, reduce inequality, empower women etc. On the other hand, to achieve sustainability, we must ensure the health of people by improving education, skill development, nutrition, and information technology, and improve the infrastructure such as electricity, roads, and transportation, etc. |
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Long Term Objectives of Five Year Plan in India
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Short Term Objectives of Five Year Plan in India
India’s five-year plans have included several short-term objectives in addition to these long-term objectives. The First Plan (1951-56), for example, emphasized agricultural development, inflation control, and refugee rehabilitation.
During the Second Plan (1956-61), the intention was to stimulate rapid industrial growth, particularly heavy industry and basic industry. During the Third Plan (1961-66), the emphasis shifted to defence rather than basic industries.
Test Your Knowledge
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कोण प्राथमिक शिक्षण सक्तीचे झाले पाहिजे याचा आग्रह धरतात.
Ans: २४ जुलै १९१७ रोजी शाहू महाराजांनी प्राथमिक शिक्षण मोफत व सक्तीचे करण्यासाठी कायदा केला होता
अर्थशास्त्र हा ग्रंथ कोणी लिहिला
1) कौटिल्य आर्यचाणक्य.
2) चंद्रगुप्त मौर्य.
3) अमर्त्य सेन.
सत्यशोधक समाजाची स्थापना कोणी केली
1) महात्मा फुले
2) छत्रपती शाहू महाराज
3) विठ्ठल रामजी शिंदे
4) महर्षी कर्वे
Sanvidhan sabha ke adhyaksh kaun the (भारत की संविधान सभा के अध्यक्ष कौन थे ?)
1) सी. राजगोपालाचारी
2) डॉ. बी आर अम्बेडकर
3) जवाहरलाल नेहरू
4) डा. राजेंद्र प्रसाद.
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