Welfare Economics

Topics: Five-year plans of India, Economic growth, Five-year plan Pages: 9 (2739 words) Published: September 9, 2010

Assignment on Five Year Plans in INDIA
Submitted to:
Prof. Bhabani mohapatra


The economy of India is based in part on planning through its five-year plans, developed, executed and monitored by the Planning Commission. With the Prime Minister as the ex officio Chairman, the commission has a nominated Deputy Chairman, who has rank of a Cabinet minister. Montek Singh Ahluwalia is currently the Deputy Chairman of the Commission. The tenth plan completed its term in March 2007 and the eleventh plan is currently underway.

The Planning Commission in India was set up on March 1950 to promote a rapid rise in the standard of living of the people by utilizing the resources of the country, increasing production and offering employment opportunities to all.

The Planning Commission has to make periodic assessment of all resources in the country, boost up insufficient resources and formulate plans for the most efficient and judicious utilization of resources.

Following are the functions of the Planning Commission of India: * To make an assessment of the resources of the country and to see which resources are deficient. * To formulate plans for the most effective and balanced utilization of country's resources. * To indicate the factors which are hampering economic development. * To determine the machinery, that would be necessary for the successful implementation of each stage of plan. * Periodical assessment of the progress of the plan.

* With the changing times, the Planning commission is preparing itself for long term vision for the future. The commission is seeing to maximize the output with minimum resources. * From being a centralized planning system, the Indian economy is slowly progressing towards indicative planning wherein the Planning Commission has set the goal of constructing a long term strategic vision for the future. * It sets sectoral targets and provides the catalyst to the economy to grow in the right direction. * The Planning Commission plays an integrative role in the development of a holistic approach to the formulation of policies in critical areas of human and economic development.

First five year plan (1951-1956)
The first Indian Prime Minister, Jawaharlal Nehru presented the first five-year plan to the Parliament of India on 8 December 1951. The first plan sought to get the country's economy out of the cycle of poverty. The plan addressed, mainly, the agrarian sector, including investments in dams and irrigation. The agricultural sector was hit hardest by the partition of India and needed urgent attention.[2] The total planned budget of 206.8 billion INR (23.6 billion USD in the 1950 exchange rate) was allocated to seven broad areas: irrigation and energy (27.2 percent), agriculture and community development (17.4 percent), transport and communications (24 percent), industry (8.4 percent), social services (16.64 percent), land rehabilitation (4.1 percent), and for other sectors and services (2.5 percent).[3] The target growth rate was 2.1 percent annual gross domestic product (GDP) growth; the achieved growth rate was 3.6 percent. During the first five-year plan the net domestic product went up by 15 percent. The monsoon was good and there were relatively high crop yields, boosting exchange reserves and the per capita income, which increased by 8 percent. National income increased more than the per capita income due to rapid population growth. Many irrigation projects were initiated during this period, including the Bhakra Dam and Hirakud Dam. The World Health...
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