Sunday, 13 March 2016

Complete year wise Five-year Plans strategy in India

Dear MM Readers, we are giving you to increase your knowledge "Complete Information on Five-year Plans in India"
First Plan (1951-56):
The central objective of public policy in India, since independence, has been the promotion of rapid and balanced economic development. The First Plan was intended as a step in that direction. The First Plan was formulated with the following aims in view:

i. To restore the economy which had run down, resist the prevalent inflationary pressures, build up the transport system and ease the food and raw material position;
Plans in India

ii. To operate substantial development programmes which could lay down the foundation for future progress;
iii. To initiate measures of social justice on a wider scale; and
iv. To build up appropriate viable administrative and other organisations for development purposes.
The First Plan ended in March, 1956. It laid the foundations for a socialistic pattern of society a social and economic order based upon the values of freedom and democracy.
Second Plan (1956-61):
The Second Plan was considered more ambitious than the First Plan. It provided for about twice as much the development expenditure as given by the earlier plan. The aims of the Second Plan were formulated as follows:
i. An annual increase of 5 per cent in the national income;
ii. Provision of additional employment to about 10 million people;
iii. Rapid industrialisation with particular emphasis on the production of iron and steel, development of basic and key industries and on their co-ordination with a planned expansion of large scale consumer goods and, cottage and small-scale industries; and
iv. Reduction of inequalities in income and wealth and more even distribution of economic power.
Second Plan was based on the Nehru-Mahalanobis model of development. Basic strategy of this model can be summed up in following lines —
(a) Development through industrialisation.
(b) Industrialisation through basic and heavy industries.
(c) Development of basic and heavy industries through increasing role of the State (Public Sector). Thus, State was assigned a big role in the Nehru-Mahalanobis model of growth. This strategy was adopted in subsequent plans also.
Third Plan (1961-66):
The approach to the Third Five Year Plan was similar to that used in the Second Plan. The official plan document of the Third Plan does not bring out any explicit attempt to use models such as those prepared by Mahalanobis.
The Third Plan aimed to give a more precise context to the social objectives of the Constitution and largely contributed towards their realization. The aims of the Third Plan were as follows:
i. To secure 5 to 6 per cent annual increase in national income so as to sustain that rate of growth during the subsequent plan periods;
ii. To increase agricultural production, and achieve self sufficiency in foodgrains in order to meet the needs of industry, exports and the growing population;
iii. To expand basic and key industries like steel, fuel, power and chemical industries, and also to establish machine-building capacity so that the requirements for further industrialisation could be met within a period of 10 years or thereabouts largely from the country’s own resources;
iv. To utilise manpower resources of the country to the maximum extent and ensure a substantial expansion of employment opportunities; and
v. To establish progressively greater equality in opportunity and bring about a reduction in the disparities in income and wealth and a more even distribution of economic power.
The difficulties encountered in the implementation of the Third Plan and the inadequate rate of growth of the economy delayed the Fourth Plan by three years.
Fourth Plan (1969-74):
The Fourth Plan commenced in April, 1969. The Fourth Plan aimed at accelerating the tempo of development in conditions of stability and reduced uncertainties it proposed:
i. To step up the tempo of activity to an extent that would be compatible with maintaining stability and progress towards self-reliance;
ii. To pay special attention to certain fields of productive activity, particularly agriculture and related primary production which have been neglected;
iii. To chart the course of industrial activity so as to provide for future technological advancement and at the same time to bring about spatial distribution of industrial activity and enterprise;
iv. To help the very large number of small producers and increase immediate employment and future employment potential;
v. To even out supplies of foodgrains and to establish prices through buffer stocks;
vi. To use monopoly legislation and appropriate fiscal policy for reducing concentration of economic power; and
vii. To utilise Panchayati Raj institutions in local planning and in the gradual building up of an integrated cooperative structure for establishing social and economic democracy in the countryside.
Fifth Plan (1974-79):
To maintain continuity, the draft of the Fifth Plan was introduced and implemented through Annual Plans till September, 1976 when the National Development Council approved the Fifth Plan for 1974-79. The Fifth Plan retained the objectives of the Draft Plan. These were:
i. Removal of poverty; and
ii. Achievement of self-reliance. The Fifth Plan projected a target growth rate of five and a half per cent which was higher than the rate at which the economy had grown over the
Fourth Plan Achievement of this objective required a higher level of investment apart from higher levels of efficiency. Greater emphasis on self-reliance implied that a higher level of savings had to be generated domestically to respond to the required level of investment. The objectives of reduction of inequalities in incomes and especially in consumption levels of the poor required that the required savings must come from the more affluent sections of our society. 
Sixth Plan (1980-85):
The objectives of the Sixth Plan are given below:
i. Progressive reduction in the incidence of poverty and unemployment;
ii. A speedy development of indigenous sources of energy with proper emphasis on conservation and efficiency in energy use;
iii. Progressive reduction in regional inequalities in the pace of development and in the diffusion of technological benefits;
iv. Promoting policies for controlling the growth of population through voluntary acceptance of the small family norm;
v. Bringing about harmony between short and long term goals of development by promoting the protection and improvement of ecological and environmental assets; and
vi. Promoting the active involvement of all sections of the people in the process of development through education, communication and institutional strategies.
Seventh Plan (1985-90):
The Seventh Plan emphasised on policies and programmes aimed at rapid growth in food production, employment opportunities and productivity within the broad framework of basic planning tenets viz., growth, modernisation, self-reliance and social justice. The main objectives of the Seventh Plan as set out in the Approach Paper are given below:
i. To achieve growth, equity and social justice, self-reliance, improved efficiency and productivity;
ii. To accelerate the production of foodgrains;
iii. To increase employment opportunities;
iv. To initiate rapid expansion of scientific and technological capabilities; and
v. To undertake execution of programmes this will facilitate the improvement in the basic priorities viz., food, work and productivity.
Eighth Plan (1992-97):
The Eighth Plan which was to commence from 1990-91, could not keep the schedule on account of political changes in years 1990-91 and 1991-92. The Plan commenced on Apri11, 1992. The Plan gave priority to the following objectives:
i. Generating adequate employment to achieve near full employment by the turn of the century;
ii. Containing population growth through people’s active cooperation and an effective scheme of incentives and disincentives;
iii. Universalisation of elementary education and complete eradication of illiteracy among people in the age group 15 – 35 years;
iv. Provision of safe drinking water and primary health care accessible to all villages and to the entire population, and complete elimination of scavenging; and
v. Strengthening of infrastructure (energy, transport, communication, irrigation) in order to support growth process on a substantial basis.
Till the Seventh Plan, the State was assigned a gigantic role in the development process. But after 1991 development strategy changed. In the New Economic Policy introduced in India since 1991 market forces and private sector were assigned more importance.
Eighth Plan was also influenced by this New Economic Policy based on liberalisation, privatisation and globalisation. This new strategy of development is sometimes called Rao-Manmohan strategy of development.
Ninth Plan (1997-2002):
The Ninth Plan came into operation from April 1, 1997. Its objectives are given below:
i. Priority to agriculture and rural development with a view to generate adequate productive employment and eradication of poverty;
ii. Accelerating the growth rate of the economy with stable prices;
iii. Ensuring food and nutritional security for all, particularly the vulnerable sections of society;
iv. Providing the basic minimum amenities of safe drinking water, primary health care facilities, universal primary education, etc.;
v. Containing the growth rate of population;
vi. Ensuring environmental sustainability of the development process through social mobilisation and participation of people at all levels;
vii. Empowerment of women and socially disadvantaged groups such as Scheduled Castes, Scheduled Tribes and Other Backward Classes and Minorities as agents of socio-economic changes and development; and
viii. Promoting and developing people’s participatory institutions like Panchayati Raj institutions, Cooperatives and self-help groups.
Tenth Five Year Plan (2002-2007):
The Tenth Five Year Plan (2002-2007) aimed at an indicative target of 8% GDP growth for the plan period. Since economic growth was not the only objective, the plan aims at harnessing the benefits of growth to improve the quality of life of the people by setting the following key objectives:
i. Reduction in poverty ratio;
ii. Providing gainful high quality employment to the additional labour force over the tenth plan period;
iii. All children to be enrolled in schools and complete 5 years of schooling;
iv. Reduction of gender gaps in literacy and wage rates by at least 50%;
v. Reduction in decadal rate of population growth between 2001 and 2011 to 16.2%;
vi. Increase in literacy rate to 75% within the plan period;
vii. All villages to have sustained access to potable drinking water within the plan period;
viii. Cleaning of major polluted rivers and other notified stretches;
ix. Reduction in Infant Mortality Rate (1MR) and Maternal Mortality Rate (MMR);
x. Around Rs.800 billion of disinvestment over 5 years and increasing FDI inflows annually to at least $7.5 billion; and
Increase in forest and tree cover to 33%. Main Strategies Adopted:
1. Disinvestment of PSUs.
2. Reform in taxes, labour laws and administrative system.
3. Adoption of private partnership in physical and social infrastructure.
4. Power sector reforms and removing all bottlenecks in energy, transport and water infrastructures.
5. Controlling Union and State budget deficits.
6. Removing all legal bars to the growth of agricultural trade as well as agro, small-scale and cottage industries.
7. Confidence in FDI that it would contribute to growth of industries.
8. Making the economy competitive with that of the rest of world.
Eleventh Five Year Plan (2007-12):
The National Development Council approved the Eleventh Five Year Plan setting ‘a faster more broad based and inclusive’ growth at the average annual rate of 9 per cent. Plan points out, it requires a substantial increase in the allocation of public resources for plan programmes in critical areas’ including education, health, agriculture and infrastructure. The objectives of the eleventh plan are given below:
i. To accelerate GDP growth from 8 per cent to 9 per cent.
ii. To create 70 million new work opportunities.
iii. To reduce educated unemployment to below 5 per cent.
iv. To raise real wage rate o f unskilled workers by 20 per cent.
v. To reduce infant mortality rate to 28 and maternal mortality rate to I per 1000 live births.
Twelfth Five Year Plan (Fyp-12) 2012-17:
The FYP-12 will cover the period from 2012-17. The Plan is expected to be different than all the earlier plans. This is basically because of the differences in the economic environment in which the plan has to be operationalised.
Among these differences, the three more important are as follows: The first is the demographic shift with a rising proportion of young workers in the North, the opposite phenomenon of a rise in the old age dependency ratio in the South and a massive shift of population from rural to urban areas.
The second is the shift of the centre of gravity of the global economy to Asia, most particularly the rise of China. The third is the growing pressure to dematerialise growth, partly because of environmental concerns (e.g., global warming) and partly because of resources scarcities (e.g., of cheap oil).
In view of these it is important to spell out new priorities in the development plan, some of these can be identified as follows:
(i) Connecting slow growth regions and remote areas (e.g., the tribal belt, the Northeast, the Gangetic plan and Kashmir) to the fast-growing mainstream economy.
(ii) Providing top-quality vocational training to widen opportunities for younger workers.
(iii) Reconstructing the plethora of anti-poverty and affirmative action programmes as a structured social security system.
(iv) Moving Indian agriculture from a low-productivity-staple producing system to a rising productivity, commercially oriented sector.
(v) Reinventing the process and management of urbanisation.
(vi) Building much stronger economic links with China and Hast Asia.
(vii) Managing emerging stresses in the water economy.
(viii) Coping with the risks of climate change.
These eight areas do not constitute the sum of all development. But they are the areas where our present policies are grossly inadequate and need radical overhaul.
All the best.. shared by: MM Team

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