Tnpsc: Five-year plan model in Indian economy

Economic Planning in India

Economic planning is a strategy by which limited resources are used skillfully to achieve the desired goals.

The concept of economic planning or a Five-year plan in India is derived from the former USSR or Currently Russia.

Five-year plan in India is derived from the former USSR
Five-year plan in India is derived from the former USSR By Maria Ilyinichna Ulyanova – WWII database: Vladmir Lenin and Josef Stalin in Gorki, Library of Congress,LC-USZ62-111092, Public Domain, https://commons.wikimedia.org/w/index.php?curid=6903456

So far, India launched twelve five-year plans.

The government of India decided to stop the launching of five-year plans and it was replaced by NITI Aayog.

First Five Year Plan (1951-1956)

The first-year plan is based on the Harrod-Domar Model. The first-year plan focused on the agricultural development of the country.

The first plan achieved more than the target planned. India achieved a GDP growth rate of 3.6%.

Second Five Year Plan (1956-1961)

P.C.Mahalanobis Model
P.C.Mahalanobis By Picture from ISI Kolkota website. [1], Fair use, https://en.wikipedia.org/w/index.php?curid=359927

The second five-year plan is based on the P.C.Mahalanobis Model.

The second five-year model focused on Industrial development. The second five-year plant is also a successful model as it achieved a growth rate of 4.1%.

Third Five Year Plan (1961-1966)

The third five-year plan is called the Gadgil Yojana.

The third five-year plan’s target was to make economic independence. As a result of the Indo-China war, this plan could not achieve the growth target of 5.6%.

Plan Holiday (1966-1969)

India-Pakistan war
India-Pakistan war By Abhinayrathore at English Wikipedia – This picture is of my maternal grandfather Brig. Hari Singh Deora A.V.S.M (Ati Vishisht Sewa Medal), 18th Cavalry (Indian Army). This picture was taken after Indian Army destroyed over 100 Patton and Sherman Tanks of Pakistani Army during the 1965 Indo-Pak War. The place was later named as w:Patton Nagar. For more information, contact me through www.AbhinayRathore.com, Public Domain, https://commons.wikimedia.org/w/index.php?curid=23877811

The reason for the planned holiday was the India-Pakistan war and the failure of the third five-year plan.

During the Plan Holiday from the period 1966-1969, Annual plans were made and equal priority was given to agriculture and its allied sectors and also to the Industrial sector.

Fourth Five Year Plan (1969-1974)

The fourth Five-year plan has two objectives one is growth with stability and another one is the progressive achievement of self-reliance.

The fourth five-year plan failed and achieved growth was only 3.3% against the target of 5.7%.

Fifth Five Year Plan (1974-1979)

In the fifth five-year plan, the top priority was given to agriculture, the next one to the industries, and the mining sector.

This plan was successful, that achieved a growth of 4.8% against the target of 4.4%. The fifth five-year plan was prepared and launched by D.P.Dhar and this plan was stopped in 1978.

Rolling Plan

The rolling plan was started with an annual plan for 1978-79 and as a continuation of the terminated fifth-year plan.

Sixth Five Year Plan (1980-1985)

Garibi Hatao Desh Bachao (“Remove poverty rescue the country”) was the theme and slogan of Indira Gandhi’s 1971 election campaign By Ritva Bäckman – http://www.finna.fi/Cover/Show?id=musketti.M012%3AHK10000%3A3352, CC BY 4.0, https://commons.wikimedia.org/w/index.php?curid=74658287

The basic objective of the sixth five-year plan was poverty eradication and technological self-reliance. The motto of the sixth five-year plan was ‘Garibi-Hatao’.

This plan is based on investment Yojana. The target of this was 5.2% but it achieved a 5.7% growth. It was a successful plan.

Seventh Five Year Plan (1985-1990)

The Objective of the seventh five-year plan included the establishment of a self-sufficient economy and opportunities for productive employment.

For the first time, the private sector got priority over the Public sector. The target growth was 5% and the achieved growth was 6%.

Annual Plans

The eighth five-year plan did not take place due to political instability at the centre. So two annual programmes are formed in 1990-91 & 1991-92.

Eighth Five Year Plan (1992-1997)

In the Eight five-year plan, the priority is provided to human resources development such as education, employment, and public health.

During the eighth five-year plan, the New Economic Policy of India was introduced. This plan was a success as it gave 6.8% growth and the target growth was 5.6%.

Ninth Five Year Plan (1997-2002)

The main objective of the Ninth five-year plan was “Growth with Justice and Equality”.

This plan failed to achieve the growth target of 7%. The growth achieved was only 5.6%.

Tenth Five Year Plan (2002-2007)

The objective of the tenth five-year plan was to double the per capita income of India in the next 10 years.

Also, it aimed to reduce the poverty ratio to 15% by 2012. The target growth rate was 8.0% but the achieved growth rate was only 7.2%

Eleventh Five Year Plan (2007-2012)

The tenth five-year plan theme was “Faster and More Inclusive Growth”. The targeted growth rate was 8.1% but the achieved growth rate was only 7.9%.

Twelfth Five Year Plan (2012-2017)

The theme of the Twelfth Five-year plan is “Faster, More Inclusive and Sustainable Growth“. The growth rate target set was 8%.

FAQ

1. Garibi hatao in which year plan?

Garibi Hatao is 5th Five-year plan. It was the part election campaign slogan for 1971, by Indira Gandhi.

2. Which five-year plan is known as Gadgil Yojana?

3rd Five Year Plan is called Gadgil Yojana.

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* * All the Notes in this blog, are referred from Tamil Nadu State Board Books and Samacheer Kalvi Books. Kindly check with the original Tamil Nadu state board books and Ncert Books.
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