Planning in India

Topics: Economics, Industry, Gross domestic product Pages: 24 (2650 words) Published: March 3, 2013
“Five Year Plans of India”


Members Of Planning Commission Of India
 Chairman
 Deputy Chairman  Member Secretary -


Dr. Manmohan Singh
(Prime Minister)
Shri Montek Singh Ahluwalia
Ms Sindhushree Kullar


Why to Plan ???
After independence, India was in dire conditions and needed to start acting soon
Some of the problems necessitated need for an immediate
Vicious circle of poverty
Foreign Trade
Need for Rapid industrialization
Population pressure

Development of Natural resources
Capital Deficiency & Market imperfections


First Five Year Plan
Introduced by the then PM Pt. J. Nehru between the period 1951-56 The one responsible -- Planning Commission

Improve living standards of the people in India which was possible by making judicious use of Natural Resources.
Total outlay of this plan -- A massive Rs.`2069 Cr
The segregation –
Industrial sector
Energy, irrigation
Transport, Communications
Land Rehabilitations
Social services
Development of Agri & community


Objectives: (cont…)

Importance was given to agri and irrigation; Power to decrease reliance on Food Grain, Imports & resolve Food crisis

A few things that happened …………
Mettur, Hirakud & Bhakra Dams were a few projects that were started Govt. decides to improve Railway Services, Road tracks & Civil Aviation, also decides to provide sufficient funds to the Industrial sector & to take measures for the growth of SSI’s.

The growth in GDP achieved by India was 3.6% p.a.
The target was ………………….
2.1% p.a.
SUCCESS !!!!!!!!

Second Five Year Plan
To increase the national income by 25%
To make the country more industrialized
Development of the public sector

To increase employment opportunities so that every citizen gets a job



Five steel mills at Bhilai, Durgapur, and Jamshedpur
Hydroelectric power projects
Production of coal increased
More Railway lines were added in the north east
Improved the living standards of the people
The large enterprises in seventeen industries were nationalized The Tata Institute of Fundamental Research – established in 1957 as a research institute
Atomic Energy Commission -- Homi J. Bhabha (Founder, 1958)


Third Five Year Plan
More stress to agriculture
Sufficient help
To increase the national income by 5% per annum
Making India self sufficient in food grains by increasing agricultural production Minimizing rate of unemployment
To establish equality among all the people of the country


The Panchayat Organization was formed

Many primary schools were started in rural areas
State electricity boards and state secondary education boards were formed State road transportation corporations were formed
Many cement and fertilizer plants were also built

Problems faced:
Sino-Indian War of 1962 exposed weaknesses in the economy and shifted the focus towards the Defense industry. In 1965-1966, India fought a war with Pakistan. The war led to inflation and the priority was shifted to price stabilization. GDP rate during this duration was lower at 2.7%. 9

Fourth Five Year Plan
(1969 to 1974)
At this time Indira Gandhi was the Prime Minister.
The Govt. nationalized 19 major Indian banks.

To reform and restructure its expenditure agenda (Defense became one major expense)
To facilitated growth in exports
To alter the socio economic structure of the society


Great advancement has been made with regard to India's national income Spending on war efforts reduced industrial spending
Tested the first nuclear weapon with Smiling Buddha in 1974 Considered as one of the emerging powers
Food grains production increased to bring about self sufficiency in production

Problems faced:
India was attacked in...
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