Lecture No.

- 02
Planning in India
Economics
By- Prathmesh Sir
1. Economic Planning in India

2.

3.

4
.
Objectives of Economic Planning

Economic Economic
Development Stability

Increased Levels Regional

of Employment Development

Self Sufficiency Social Justice

 Planning in India
▪ The first blue print of Indian economic planning
was given by Mokshagundam Visvesvaraya in
1934.

▪ in his book the planned Economy of India.

▪ Shift from agriculture to industry.

▪ Targeted to Double the national income in 10

years.
 Congress Plan (1938)
▪ Haripura Adhivashan 1938 congress first time officially demanded for
planning in India .

▪ Subhash Chandra Bose –president

▪ National Planning Committee was set up in oct

1938

▪ 15 members

▪ Chairman – J. L. Nehru
 Bombay plan (1944-45)
➢ Presented by 8 capitalists led by Jehangir Ratanji Dadabhoy TATA

➢ Plan was in support of heavy Industrialization & agriculture

➢ Title was “ A Plan for Economic Development for India “

➢ Also called BIRLA – TATA plan

 Meaning of Economic Planning
▪ J. R. D. Tata
▪ Ghanshyam Das Birla
▪ Ardeshir Dalal
▪ Lala Shri Ram
▪ Kasturbhai Lalbhai
▪ Ardeshir Darabshaw Shroff
▪ Sir Purshottamdas Thakurdas
▪ John Mathai
 The Gandhian plan or Gandhi Yojana (1944)
➢ Formulated by Sriman Narayan Agrawal in 1944 base was made by M.K
Gandhi

➢ Opposite of Bombay Plan

➢ Against Heavy Industrialization

➢ Emphasis on village development and Agriculture

➢ Promoting Cottage and village industry

 Peoples Plan (1945)
▪ Formulated by M.N ROY

▪ Based on Marxist Socialism

▪ Advocated the need of basic necessity

for people

▪ Gave importance to Agriculture and

Industrialization Both
 Sarvodaya Yojana (1950)
▪ Formulated by Jayaprakash Narayana
▪ Based on sarvodaya concept of vinoba bave
▪ Similar to Gandhian plan
▪ Cottage industry
▪ Self reliance
▪ Agriculture
▪ It also suggested the freedom from foreign
technology and stressed upon land reforms and
decentralized participatory planning.
 Planning Commission
▪ Established – 15 march 1950

▪ Pandit Nehru was the first Chairman of

the Planning Commission.

▪ Chairman – Prime Minister

▪ Total 8 full-time members

▪ Five-year Plan
 National Development Council (NDP)
▪ Establish- 6 August 1952
▪ MEMBERS
▪ Indian Prime Minister
▪ All the Union Cabinet Ministers
▪ Chief Ministers of all States or their substitutes
▪ Representatives of the union territories and
▪ The members of the NITI Aayog (erstwhile planning commission
 Niti Aayog
▪ National Institute For Transforming India
▪ Also Known as THINK TANK
▪ Established – 1 jan 2015
▪ emphasis on ‘Bottom –Up’ approach
▪ Team India Hub - acts as interface between
States and Centre.
▪ Knowledge and Innovation Hub -builds the
think-tank acumen of NITI Aayog.
 Niti Aayog
▪ 3-year action agenda
▪ 7-year medium-term strategy paper
▪ 15-year vision document
 Members
▪ Chairperson: Prime Minister
▪ Vice-Chairperson: To be appointed by Prime-Minister
▪ Governing Council: Chief Ministers of all states and Lt. Governors of
Union Territories.
▪ Regional Council: To address specific regional issues, Comprising Chief
Ministers and Lt. Governors Chaired by Prime Minister or his nominee.
▪ Adhoc Membership: 2 member in ex-officio capacity from leading
Research institutions on rotational basis.
 Members
▪ Ex-Officio membership: Maximum four from Union council of ministers
to be nominated by Prime minister.
▪ Chief Executive Officer: Appointed by Prime-minister for a fixed tenure,
in rank of Secretary to Government of India.
▪ Special Invitees: Experts, Specialists with domain knowledge
nominated by Prime-minister.
 First Five Year Plan
➢ 1951 – 1956
➢ Based on Harrod-domar Model
➢ Main issue – Large scale food Import

Objectives:
➢ food self-sufficiency
➢ Agriculture Development
➢ Rehabitation of refugee
➢ Target – 2.1% GR
 Achievements
➢ Five Indian Institutes of Technology
(IITs) were started

➢ UGC for Higher education

➢ Bhakra Dam and Hirakund Dam

➢ Target Achieved – 3.6 % GR

➢ Monsoon was very Good
 Second Five Year Plan
▪ 1956 – 1961

▪ Based on PC Mahalanobis MODEL (USSR industrialization)

▪ FOUNDER OF Central Statistics ORGANIZATION - NATIONAL STATISTICS
DAY 29 JUN
▪ Emphasis on the heavy industries
▪ Shift from agriculture to industry

▪ Industrial policy Resolution 1956 ( first was in 1948)

▪ Target – 4.6
 Second Five year plan Achievements
➢ Bhilai Steel plant – RUSSIA

➢ Durgapur Steel plant - Britain

➢ Rourkela Steel Plant - west Germany

➢ Atomic Energy Commission was formed in 1957 with Homi J. Bhabha as

the first chairman.

➢ Tata Institute of Fundamental Research was established as a research

institute.
 Second Five year plan Achievements
➢ LIC- 1956

➢ First TV Broadcast

➢ Target achieved – 4.27 % GR

➢ small and cottage industries remained sluggish during this plan
➢ imports increased
 Third Five Year Plan (1961-1966)
▪ 1961-1966
▪ S.Chakravarty and Prof. Saddy made it
▪ This plan is also called ‘Gadgil Yojna’
▪ Target – Self reliance
▪ Agriculture + industry
▪ The main target of this plan was to make the economy independent
▪ Targeted growth Rate - 5.6%
▪ Achieved – 2.8%
 Reasons of failure
➢ Indo- China War 1962

➢ Indo –Pak War 1965

➢ Drought 1964-64

➢ Agriculture Growth becomes Negative

➢ Oil crises 1963-64

➢ Lost 2 P.M
 Plan Holiday (1966-1969)
1. April 1, 1966, to March 31, 1967

2. April 1, 1967, to March 31, 1968

3. April 1, 1968, to March 31, 1969.

 Green Revolution
▪ Norman Borlaug and William Gaud

▪ Father of GR - Dr. Norman Borlaug

▪ Father of Green Revolution In India -M.S.

Swaminathan

▪ High Yielding Varieties (HYVs) of wheat

 Fourth Five Year Plan (1969-1974)
▪ 1969-1974
▪ Objectives:
• Growth With Stability
• Progressive Achievement Of self reliance
• Establishment of Social Order
• Growth With Justice
▪ Target Growth – 5.7%
▪ Target Achieved – 3.6% (Approx.)
▪ Population explosion, increased unemployment, poverty, and a
shackling economy
 Reasons of Failure
▪ Indo-Pak War 1971

▪ Bangladeshi Refugee

▪ The Oil crises of 1974

▪ Drought 1972-73
✓ 14 Private Bank Nationalized – 19 July 1969

✓ Operation Flood

✓ White Revolution – Dr Verghese Kurien

 Fifth Five year plan (1974-1979)
▪ 1974-1979
▪ Plan Prepaid by D.D Dhar (Dhar Yojana )
▪ Objectives:
1. Poverty Eradication
2. Attainment of self reliance
▪ Slogan of “GARIBI HATAO”
▪ Indira Gandhi government also launched twenty point program
▪ Target growth – 4.4%
 Events and Achivements
▪ Pokhran-I (Smiling Buddha) – 18 MAY 1974

▪ Head- DR. Raja Ramanna

▪ Establishment of Regional Ruler Bank- 1975

▪ Family Planning
▪ National Emergency 1975
▪ Emergency revoked 1977
 Rolling Plan (1978-1980)
▪ New Pm – Morarji Desai
▪ Started a New plan Called Rolling Plan
▪ The meaning of the Rolling Plan was that now, every
year the performance of the plan will be assessed
and a new plan will be made next year based upon
this assessment.
▪ Also Called Gunnar Myrdal plan
 Sixth Five Year Plan (1980-1985)
▪ 1980-1985
▪ Objectives
1. Increase National Income
2. Remove poverty
3. Decrease unemployment
4. Modernization of technology
▪ Target – 5.2%
▪ Achieved – 5.7%
 Achievements
▪ Special attention was paid to the removal of poverty through rural
development schemes
• Integrated Rural Development Programme (IRDP)
• National Rural Employment Programme (NREP)
• Rural Landless Employment Guarantee Programme (RLEGP)
▪ 15 April 1980 – 6 more banks Nationalized
▪ 12 July 1982 – NABARD
▪ National Bank for Agriculture and Rural Development
 Seventh five year plan (1985-1990)
▪ 1985-1990
▪ Objectives
▪ Speedy development
▪ Modernization
▪ Computerization
▪ Dr. Manmohan Singh was Deputy chairman of
planning commission
▪ Target – 5.0%
▪ Achieved -6.0%
 Annual Plans ( 1990-1992)
▪ Excessive external borrowing
▪ Financial Circes
▪ The Foreign exchange reserves were left a just one
billion Dollars in January 1991, which was sufficient to
finance three weeks’ worth of imports
▪ Kept Reserve Gold with IMF
▪ New Economic Policy 1991
▪ LPG reforms
 Annual Plans ( 1990-1992)

The Eighth Plan couldn't be implemented because of the rapid changes

in the political arena at the Centre.

Two consecutive annual plans were launched.

Fiscal years 1990-91 and 1991-92 were treated as two separate plans.

The agenda for these plans was the maximization of employment and
social transformation.
 Eight plan ( 1992-1997)
▪ 1992-1997
▪ Objective
▪ Creation of Employment
▪ Improve Primary Health Facility
▪ New Economic Policy was Implemented
▪ Focus More to Private Sector
▪ Pradhan Mantri Rozgar Yojna
▪ Target growth – 5.6%
▪ Archived – 6.8%
 Ninth Plan (1997-2002)
▪ 1997-2002
▪ objectives
▪ “Growth with Social Justice and Equality”
▪ Improving the quality of the life
▪ Generation of Productive employment
▪ Creation of regional balances
▪ Self-reliance
▪ Target Growth -6.5%
▪ Actual Growth – 5.4%
 Tenth Plan (2002 - 2007)
▪ 2002-2007
▪ Objectives
▪ ‘Monitorable Targets’
▪ This plan aimed to double the Per Capita Income of India in the next 10
years.
▪ Reducing School Dropout Rate
▪ Target – 8.1%
▪ Achieved -7.7%
 Eleventh Plan (2007-2012)
➢ 2007-2012
➢ Objectives
➢ “Rapid and more inclusive growth”.
➢ Financial Inclusion

➢ Aadhar Card (UDI)

➢ Target Growth – 9%
➢ Actual Growth – 8%
 Twelfth Plan (2012-2017)
▪ 2012-2017
▪ Objective
▪ “Faster, More Inclusive and Sustainable Growth
▪ Rising Agriculture output
▪ Remove Poverty
▪ Swachh Bharat Abhiyan
▪ Target Growth – 8%
Twelfth Plan (2012-2017)

The Draft Approach Paper indicated 14 key areas to be focussed on by

the Twelfth Five-Year Plan. Some of these were energy transport,
natural resources, rural transformation, health, transport, education
and skill development.
Questio
n
The Prime Minister of India is the _________ OF NITI Aayog.

A Chief Executive Officer

B Vice-Chairperson

C Chairperson
D Chief Vigilance Officer
Questio
n
NITI Aayog was constituted on

A 1 January 2015

B 30 January 2015

C 1 January 2016
D 30 January 2016
Questio
n
The chief architect of the Sarvodaya Plan was

A Subhash Chandra Bose

B Mahatma Gandhi

C Jayaprakash Narayan
D JL Nehru
JAI HIND !