The Constitution came into force on 26 January 1950.

Subsequently, Planning Commission was set up on

15 March 1950 and the plan era started from 1 April 1951 with the launching of the First Five Year Plan
(1951-56).

Economic Planning In India – Five Year Plans

The term economic planning is used to describe the long term plans of the government of India to develop
and coordinate the economy with efficient utilization of resources. Economic planning in India started after
independence in the year 1950 when it was deemed necessary for economic growth and development of
the nation.

List of Five Year Plans in India- Download PDF Here

Long term objectives of Five Year Plans in India are:

 High Growth rate to improve the living standard of the residents of India.
 Economic stability for prosperity.
 Self-reliant economy.
 Social justice and reducing the inequalities.
 Modernization of the economy.
The idea of economic planning for five years was taken from the Soviet Union under the socialist influence
of first Prime Minister Pt. Jawahar Lal Nehru.
The first eight five year plans in India emphasised on growing the public sector with huge investments in
heavy and basic industries, but since the launch of Ninth five year plan in 1997, attention has shifted
towards making government a growth facilitator.
An overview of all Five Year Plans implemented in India is highlighted below:

List of Five Year Plans in India [1951-2017]

Five Years Assessment Objective

Year
Plans

First 1951- Targets and objectives Rehabilitation of refugees,

Five 1956 more or less achieved. rapid agricultural development
year With an active role of to achieve food self-
Plan the state in all sufficiency in the shortest
economic sectors. Five possible time and control of
Indian Institutes of inflation.
Technology (IITs) were
started as major
technical
institutions.

Second 1956- It could not be The Nehru-Mahalanobis model

Five 1961 implemented fully due was adopted.„Rapid
year to the shortage of industrialisation with
Plan foreign exchange. particular emphasis on the
Targets had to be development of basic and heavy
pruned. Yet, industries Industrial Policy
 Hydroelectric power of 1956 accepted the
projects and five establishment of a socialistic
steel mills at Bhilai, pattern of society as the goal
Durgapur, and Rourkela of economic policy.
were established.

Third 1961- Failure. Wars and „establishment of a self-

Five 1966 droughts. Yet, reliant and self-generating
year Panchayat elections economy‟
Plan were started.• State
electricity boards and
state secondary
education boards were
formed.

Plan 1966- A new agricultural crisis in agriculture and

Holidays 1969 strategy was serious food shortage required
– Annual implemented. It attention
Plans involved the
distribution of high-
yielding varieties of
seeds, extensive use
of fertilizers,
exploitation of
irrigation potential
and soil conservation
measures.

Fourth 1969- Was ambitious. „growth with stability‟ and

Five 1974 Failure. Achieved progressive achievement of
year growth of 3.5 percent self-reliance Garibi
Plan but was marred by HataoTarget: 5.5 pc
Inflation. The Indira
Gandhi government
nationalized 14 major
Indian banks and
the Green
Revolution in India
advanced agriculture.

Fifth 1974- High inflation. Was „removal of poverty and

Five 1979 terminated by the attainment of self-reliance‟
year Janta govt. Yet, the
Plan Indian national
highway system was
introduced for the
first time.

Sixth 1980- Most targets achieved. „direct attack on the problem

Five 1985 Growth: 5.5 pc.Family of poverty by creating
year planning was also conditions of an expanding
Plan expanded in order to economy‟
prevent
overpopulation.

Seventh 1985- With a growth rate of Emphasis on policies and

Five 1990 6 pc, this plan was programs that would accelerate
year proved successful in the growth in foodgrains
Plan spite of severe production, increase
drought conditions for employment opportunities and
the first three years raise productivity
consecutively. This
plan introduced
programs like Jawahar
Rozgar Yojana.

Annual 1989- It was the beginning No plan due to political

Plans 1991 of privatization and uncertainties
liberalization in
India.

Eighth 1992- Partly success. An Rapid economic growth, high

Five 1997 average annual growth growth of agriculture and
year rate of 6.78% against allied sector, and the
Plan the target 5.6% was manufacturing sector, growth
achieved. in exports and imports,
improvement in trade and
current account deficit. to
undertake an annual average
growth of 5.6%

Ninth 1997- It achieved a GDP Quality of life, generation of

Five 2002 growth rate of 5.4%, productive employment,
year lower than the target. regional balance and self-
Plan Yet, industrial growth reliance.Growth with social
was 4.5% which was justice and equality. growth
higher than targeted target 6.5%
3%. The service
industry had a growth
rate of 7.8%. An
average annual growth
rate of 6.7% was
reached.

Tenth 2002 It was successful in To achieve 8% GDP growth

Five –2007 reducing the poverty rate,Reduce poverty by 5
year ratio by 5%, points and increase the
Plan increasing forest literacy rate in the country.
cover to 25%,
increasing literacy
rates to 75 % and the
economic growth of the
 country over 8%.

Eleventh 2007- India has recorded an Rapid and inclusive

Five 2012 average annual growth.Empowerment through
year economic growth rate education and skill
Plan of 8%, farm sector development. Reduction of
grew at an average gender
rate of 3.7% as inequality.Environmental
against 4% targeted. sustainability.
The industry grew with To increase the growth rate in
an annual average agriculture, industry, and
growth of 7.2% against services to 4%,10% and 9%
10% targeted. resp. Provide clean drinking
water for all by 2009.

Twelfth 2012- Its growth rate target “faster, sustainable and more
Five 2017 was 8%. inclusive growth”. Raising
year agriculture output to 4
Plan percent. Manufacturing sector
growth to 10 %
The target of adding over
88,000 MW of power generation
capacity.