ECONOMIC PLANNING IN INDIA - Prospects & Retrospect”
Subject: Project study on “Economic Planning in India – Retrospect & Prospects”
This is regarding the project done by our group for Economic Environment of Business. In this project study we have tried to go through and take reference from various books, articles and websites.
The project study has been done to critically analyze the various facets of Economic planning in India and also for the purpose of evaluation of our group for internal assessment, by the authorization of our faculty members Prof. Megha Chandok. We are indebted to her for helping us with our report preparation and in future also we will be privileged to take assistance from her.
We would like to acknowledge the help and support of Prof. Meghna Chandok without whose support this project would not have seen the light of the day. We are grateful to her for not only guiding us through this project but also providing us unflinching support and endless resources in making our endeavor a success. We are also extremely thankful to all the members of the group for their support to finish the project.
1st Five-Year Plan (1951-1956)
The 1st five year plan was presented by Jawaharlal Nehru, who was the Prime Minister during that period. It was formulated for the execution of various plans between 1951 & 1956. The Planning Commission was responsible for working out the plan.
Objectives of the 1st five year plan (1951 to 1961):
The primary aim of the 1st five year plan was to improve living standards of the people of India. This could be done by making judicious use of India's natural resources. The total outlay of the 1st five year plan was worth Rs.2,069 crore. This amount was assigned to different sectors which included:
1. Industrial sector
2. Energy, Irrigation
3. Transport, Communications
4. Land rehabilitation
5. Social services
6. Development of agriculture and community
7. Miscellaneous issues: The target set for the growth in the gross domestic product was 2.1 percent 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.
Some important events that took place during the tenure of the 1st five year plan:
1. The following Irrigation projects were started during that period:
2. Mettur Dam
3. Hirakud Dam
4. Bhakra Dam.
5. The government had taken steps to rehabilitate the landless workers, whose main occupation was agriculture. These workers were also granted fund for experimenting and undergoing training in agricultural know how in various cooperative institutions. Soil conservation, was also given considerable importance.
6. The Indian government also made considerable effort in improving posts and telegraphs, railway services, road tracks, civil aviation.
7. Sufficient fund was also allocated for the industrial sector. In addition measures were taken for the growth of the small scale industries.
2nd Five-Year Plan (1956-1961)
With India's five year plans the country has attained a more or less stable economic setup down the years. The 1st five year plan ended in the year 1956. The 2nd five year plan was effective from 1956 to 1961.
Objectives of the 2nd five year plan (1956 to 1961):
Industries got more importance in the 2nd five year plan. The focus was mainly on heavy industries. The Indian government boosted manufacturing of industrial goods in the country. This was done primarily to develop the public sector.
The 2nd year five year plan functioned on the basis of Mahalanobis model. The Mahalanobis model was propounded by the famous...