Five Year Plans

Five Year Plans

First Plan (1951-56) ·         It was based on Harrod-Domar Model.

·         Community Development Program was launched in 1952.

·         Emphasized on agriculture, price stability, power & transport.

·         It was more than a success because of good harvests in the last two tears.

Second Plan (1956-61) ·         Also called Mahalanobis Plan after its chief architect.

·         Its objective was rapid industrialization.

·         Advocated huge imports which led to emptying of funds leading to foreign loans. It shifted basic emphasis from agriculture to industry far too soon. During this plan, price level increased by 30% against a decline of 13% during the First Plan.

Third Plan (1961-66) ·         At its conception time, it was felt that Indian economy has entered a take-off stage. Therefore, its aim was to make India a ‘self-reliant’ and ‘self-generating’ economy.

·         Also it was realized from the experience of first two plans that agriculture should be given the top priority to suffice the requirements of export and industry.

·         Complete failure due to unforeseen misfortunes, viz. Chinese aggression (1962), Indo-Pak war (1965), severest drought in 100 years (1965-66).

Three Annual Plan (1966-69) ·         Plan holiday for 3 years. The prevailing crisis in agriculture and serious food shortage necessitated the emphasis on agriculture during the Annual Plans.

·         During these plans a whole new agriculture strategy involving wide-spread distribution of High-Yielding Varieties of seeds, the extensive use of fertilizers, exploitation of irrigation potential and soil conservation was put into action to tide-over the crisis in agricultural production.

·         During the Annual Plans, the economy basically absorbed the shocks given during the third Plan, making way for a planned growth.

Fourth Plan (1969-74) ·         Main emphasis on agriculture’s growth rate so that a chain reaction can start.

·         Fared well in the first two years with record production, last three years failure because of poor monsoon.

·         Had to tackle the influx of Bangladeshi refugees before and after 1971 indo-Pak war.

Fifth Plan (1974-79) ·         The fifth plan prepared and launched by D.D. Dhar proposed to achieve two main objectives viz, ‘removal of poverty’ (Garibi Hatao) and ‘attainment of self reliance’ , through promotion of high rate of growth, better distribution of income and a very significant growth in the domestic rate of savings.

·         The plan was terminated in 1978 (instead of 1979) when Janata Govt. came to power. 

Rolling Plan (1978-80) ·         There were 2 Sixth Plans. One by Janata Govt. (for 78-83) which was in operation for 2 years only and the other by the congress Govt when it returned to power in 1980.

·         The Janta Govt. Plans is also called Rolling Plans.

Sixth Plan (1980-85) ·         Objective : Increase in national income, modernization of technology, ensuring continuous decrease in poverty and unemployment, population control through family planning, etc.
Seventh Plan (1985-90) ·         The seventh plan emphasized policies and programs which aimed at rapid growth in food-grains production, increased employment opportunities and productivity within the framework of basic tenants of planning.

·         It was a great success, the economy recorded 6% growth rate against the targeted 5%.

Eighth Plan (1992-97) ·         The eighth plan was postponed by two years because of political upheavals at the Centre and it was launched after a worsening Balance of Payment position and inflation during 1990-91.

·         The plan undertook various drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6%.

·         Some of the main economic performances during eighth plan period were rapid economic growth, high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit.

Ninth Plan (1997-2002) ·         It was developed in the context of four important dimensions: Quality of life generation of productive employment, regional balance and self-reliance.
Tenth Plan (2002-2007) ·         Its objectives included achieving the growth rate of 8%, reduction of poverty ratio to 20% by 2007 and to 10% by 2012, universal access to primary education by 2007, increase in literacy rate to 72% within the plan period and to 80% by 2012.
Eleventh Plan (2007-2012) ·         Accelerate growth rate of GDP from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016-17.

·         Increase agricultural GDP growth rate of 4% per year to ensure a broader spread of benefits.

·         Increase literacy rate for persons of age 7 years or more to 85%.

·         Reduce infant mortality rate (MR) to 28 and maternal mortality ratio (MMR) to 1 per 1000 live births.

·         Raise the sex ratio for age group 0-6 to 935 by 2016-17.

Twelfth Plan (2012-2017) ·         Growth rate of GDP targeted at 8%

·         To achieve a growth of 4% in agriculture and 10% in manufacturing sector per year.

·         To reduce poverty by 10 percentage points by 2017.

·         To create 5 crore new job in the non-agriculture sectors.

·         To reduce infant mortality rate to 25 maternal mortality rate to 1 per 1000 live births and increase sex ratio in the 0-6 age group to 950.   


Plan Target Actual Plan Target Actual
First plan (1951-56) 2.9% 3.6% Seventh plan (1985-90) 5.0% 6.0%
Second plan (1956-61) 4.5% 4.3% Eighth plan (1992-97) 5.6% 6.8%
Third plan (1961-66) 5.6% 2.8% Ninth plan (1997-2002) 6.5% 5.4%
Fourth plan (1969-1974) 5.7% 3.3% Tenth plan (2002-2007) 8.0% 7.2%
Fifth plan (1974-79) 4.4% 4.8% Eleventh plan (2007-2012) 9.0% 8.6%
Sixth plan (1980-85) 5.2% 6.0% Twelfth plan (2012-2017) 8.0% _


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