DEVOLOPMENT PROCESS AND SOCIAL MOVEMENTS IN

CONTEMPORARY INDIA
ASSIGNMENT (SEMESTER 5)
SUBMITTED TO – DR.MANEESHA ROY

SUBMITTED BY-SHUBHANGNI BHOLA

SECTION- 3B

ROLL NUMBER-212902

Q 1) Critically assess or analyse India’s planning process as a post colonial state,

tracing its trajectory marking out the highs and lows of the planning process and
implementation

Ans) India as an independent nation was born in challenging times. The country had to face
many difficulties in the aftermath of the partition of 1947 like displacement of large masses,
refugee issues and most important, the issue of the country’s planned economic development.
Development is a comprehensive term. It is not confined to one single definition; rather it has
many definitions and interpretations. For example, the meaning of development for an
industrialist will be different from that for an Adivasi.

The period around India’s independence coincided with the Cold War era when the entire
world got divided into two camps – one led by the USA (Western Alliance) and the other led by
the USSR (Eastern Alliance).Therefore, India had two types of models for development-the
liberal capitalist model and the socialist model. There were many debates and discussions over
what model India should adopt for its planned socio-economic development. The nationalist
leaders played an important role in these debates. They were clear that the economic policies
of the government of free India would be different from those of the colonial British
government. The primary concerns at that time were economic growth, poverty alleviation,
modernization, self- reliance and social equity and justice.

The National Planning Committee was established under the chairmanship of Jawaharlal Nehru
at the end of 1938 and published several papers on economic development. In 1944, a group of
eight big industrialists drafted a joint proposal ‘BOMBAY PLAN’ for establishing a planned
economy for Independent India.It focused on the state implementing measures in the industrial
sector and other economic investments. Thus, planning was the most evident choice for the
country after Independence. After India became independent, the Planning Commission came
into being in 1950. The Prime Minister was its Chairperson. It became the central machinery for
deciding what path and planning strategy India would adopt for its development. Hence, the
planning commission was instructed to construct a six-year development plan for Colombo plan
(1951 to 1957) as required by its member countries (south and Southeast Asia). The Indian
government decided to bring out a blueprint for a five-year plan which would begin in April
1951. The draft plan was not completed till July 1951. The final draft plan was initiated in
December 1952. At the same time, there were two main bodies at the national level- Planning
Commission and the National Development Council. The national development Council
provided aid to planning commission for formulating the plans for economic planning and
development.

In 1951, first five-year plan was introduced under Jawahar Lal Nehru. The main goals were
improving people’s standard of living through proper allocation of resources, increased
production and productivity and providing equal employment opportunities. The duration of
the first five-year plan was 1951 to 1956. It was constructed on the Harrod Domar model.
During the beginning of this plan, the country faced huge migration from Pakistan and their
rehabilitation, shortage of food due to partition and a major part of irrigated area became part
of newly formed Pakistan and inflation as a result of the disequilibrium caused due to Second
World War and the partition of the country. The planning strategy for the first five-year plan of
the government was to achieve food security and self- sufficiency in the shortest span of time,
and to control inflation. The plan, therefore, aimed at rapid growth of irrigation in order to
improve the output of food grains and raw materials like jute and cotton. The strategy helped
to boost agriculture production, especially in food grains and also helped in controlling
inflation. This plan gave the highest priority to the agrarian sector. The aim here was also to
rebuild the economy affected by war and partition. By the end of this plan, imports of food
grains became negligible and the general price level declined by 13% and food prices also fell.
The target was 2.1% but the achieved target of growth was 3.6%. The strategy was a success
leading to greater yields in the last two years of the plan. The objectives of refugee
rehabilitation, food sufficiency and price control were met.

For the second five-year plan (1956 to 1961), it was regarded that a forward approach should
be adopted in the development of basic and heavy industries for a rapid advance in the future.
PC Mahalanobolis was the father of the second five-year plan. This plan was designed in a
stable environment where agriculture could be given a low priority. The plan emphasized on
rapid industrialization, particularly in small and large sectors. The basic element of the plan was
to develop an economy with a strong industrial base in terms of expansion of iron and steel,
coal, nonferrous metals, cement and heavy chemicals and other industries of basic importance.
The target set was 4.5% but the achieved level of growth was 4.3%.Due to the foreign exchange
shortage, development targets were neglected and price rose by 30% as compared to previous
plan. Therefore, second plan was partially successful. After the second plan, it was clear that
without a strong developed agricultural sector, a faster rate of economic development would
be impossible.

In the third five-year plan (1961 to 1966), the agricultural and industrial sectors were given
equal attention simultaneously. The main strategy for the plan was to develop agriculture on a
larger scale and diversify the Indian rural economy. It also laid equal stress on the development
of industries, both basic and heavy, such as steel, fuel, power and others needed for rapid
economic development. The third plan also focused on self-reliance and self-sufficiency.
However, the plan was not successful since the target growth rate was 5.6% and the received
target was 2.8%. Three major factors Led to the failure of the third five-year plan-(a) the
Chinese invasion of India in 1962, (b) armed conflict with Pakistan in 1965 and (c) bad
monsoons in 1965-1966, leading to serious draughts which reduced food grains production by
20% in a year. The failure of the third plan led to the postponement of the fourth five-year plan.

The country marked three annual plans (1966-67 and 1968-69) as the “Plan Holiday”. It was
when the economy recovered from the recession witnessed during 1966-67, that the
government launched the Fourth Plan (1969-1974). The two main objectives of the fourth plan
were (a) Growth with stability, and (b) Progressive Achievement of Self-Reliance.

To achieve the first objective of growth with stability, initiatives had to be taken to stabilize the
prices of food grains and the price level in general. For this purpose, the Plan adopted the
Intensive Agricultural Development Programme (IADP) in 1967 emphasizing the use of high-
yielding variety seeds with adequate fertilizers in areas of assured irrigation. This was intended
to bring a new increase in agricultural production to stabilize prices of food grains and
agricultural raw materials.

To achieve the objective of self-reliance, the finance sector was given more importance. The
foreign aid for debt charges and interest payments was set to be reduced to half by the end of
the Fourth Plan. The main focus was on agriculture's rate of expansion to allow other industries
to advance. The plan's first two years saw new records of production. Some of the key goals
included family planning programmes .The planning strategy of this plan is seen as a major
failure as a result of the influx of migrants from Bangladesh during the India and Pakistan war in
1971. Actual growth was 3.3 % while the target was 5.7 %.

D.P. Dhar drafted the final draft of the fifth five year plan in the midst of an economic crisis
resulting from increasing oil prices and the government's failure to regulate wholesale wheat
trade. The two key objectives of the Fifth Plan were (a) the Removal of poverty (Garibi Hatao)
and (b) attainment of self-reliance. The main elements of the plan were to achieve 5.5% overall
GDP growth, a national minimum needs programme covering elementary education, clean
drinking water, health care facilities in rural areas, nutrition, housing facilities for landless
labour,etc. Actual growth was 4.8 % and the target was 4.4 %. As a result of the declaration of
emergency in June 1975, the government decided to implement the Prime Minister's 20- Point
Plan. When the Janta Party attained power in 1978, the five year plans were given a low
priority, and the Plan was canceled.

There were two sub- parts for the sixth five year plan- Janta Government proposed a planning
strategy but could not fulfill the goals as it collapsed within two years. When Congress came
into power in 1980, it initiated a planning strategy focusing on eliminating poverty by creating
inclusive conditions for economic growth. The beginning of economic liberalization was evident
in the Sixth Five-Year Plan (1980-1985). Ration shops were shut and price limits were removed
resulting in rise in food prices and the standards of living. Nehruvian socialism became an idea
of the past. The Shivaraman Committee recommended establishing the National Bank for
Agriculture and Rural Development (NABARD) in 1982. Unlike China's one-child policy, India did
not follow this policy. Increasing national income, rapid modernization, poverty alleviation,
employment facilities and population control were part of the plan. The Plan was successful as
the achieved growth rate was 5.7 % while the set target was 5.2 %.

The seventh five year plan (1985-1990) centrally emphasized on policies that would accelerate
food grain production, generate equal employment opportunities and increase overall
productivity. Thus the focus of the Plan was on work, food security and productivity. The plan
was a huge success as the growth rose by 6% instead of the target level of 5%. Agricultural
production grew at an average rate of 3.9% and industrial production grew by 8.6 %. Hence, all
the targets of the plan were achieved.

The eighth plan was postponed by two years because of political uncertainty in the country.
The target was 5.6% but the achieved growth was 6.8%. This plan focused on the
universalization of elementary education and eradication of illiteracy for people of the age
group 15-35.It also aimed for provisions of clean drinking water and sanitation and
diversification of agriculture to achieve self-sufficiency and strengthen the social and economic
infrastructure to support the country’s sustainable economic growth.

The Ninth Plan ranged from 1997 till 2002. The plan objectives were agricultural and rural
development for generating employment opportunities and poverty eradication, food security
especially for vulnerable section, clean drinking water, social infrastructure, sustainable
development through people’s participation, women empowerment and socially disadvantaged
groups (SC, ST, OBC, minorities) as agents of change and development, development of
institutions like PRIs, cooperatives, and self help groups. Target was 6.5 but the actual growth
was 5.4.
The Tenth Plan (2002-2007) aimed at access to basic social services of health, education,
sanitation and drinking water, and expansion of social and economic opportunities for
everyone. Significant allocation of resources to the social sector and improvement in
governance for effective use of resources. It claimed to reduce poverty to 15 % by 2007 and to
5 % by 2012. Gender gap to be reduced to 50 % by 2007, Population growth to be slowed by
16.2 %, Literacy rate to be raised to 75 % by 2007.

The Eleventh Plan (2007-2012) aimed toward faster and more Inclusive growth. By the end of
the Tenth Plan, India became one of the world's fastest-growing economies. Savings and
investment rates rose, the industrial sector gained significance in the global market and
encouraged business outsourcing. The Eleventh Plan began with a growth rate of 9.3% in the
first year, but due to the global financial crisis, growth decelerated to 6.7% in 2008-09. In 2009-
10 and 2010- 11, the economy recovered significantly, with growth rates of 8.6 % and 9.3%
respectively. However, global recession in 2011 caused by the European debt crisis, along with
internal factors such as rigid monetary policy and several restrictions, resulted in a 6.2 % growth
rate in 2011-12. As a result, during the Eleventh Plan, the GDP growth was 8%, which was lower
than the target but higher than the Tenth Plan's growth.. During the 11th Plan, the agriculture,
industry, and service sectors were expected to grow by 3.7 %, 7.2 %, and 9.7 %, as compared to
growth targets of 4%, 10-11 %, and 9- 11 %.

The Twelfth Five Year Plan (2012-17) began when the world economy was facing a second
financial crisis, caused by the European sovereign debt issues, which affected the Eleventh Plan.
All the countries, including India, were affected by the crisis. In 2011- 12, India’s growth
reduced to 6.2%. The Twelfth Plan emphasized restoring rapid economic growth while
ensuring that it is both inclusive and sustainable. The Twelfth Plan is two-fold. The immediate
challenge was to stop the current situation of growth by rebuilding investment. In the course of
this plan, due to many internal and external factors, the planning commission was abolished
and replaced by NITI Aayog which became the main policy think tank for economic
development.

CRITICAL ANALYSIS OF FIVE YEAR PLANS-

The first five-year plan was successful as the target growth was 2.1% and the achieved growth
rate was 3.6%.The second plan achieved a partial success due to the shortages of foreign
exchange for development of the industrial sector. The actual growth achieved was 4.3% as
against the target of 4.5%. The third plan was not successful as the growth rate achieved was
2.8% as against the target of 5.6 %.Although the fourth plan aimed at a growth rate of 5.7%, yet
it could achieve only 3.3 %. The fifth plan failed due to high levels of inflation. The sixth plan
faced a severe famine occurred in the fifth year i.e., 1984-85. Therefore, the agricultural
production declined drastically. However, the economic growth was 5.7% as against the target
of 5.2%.The seventh plan recorded a growth rate of 6% as against the target of 5%.The eighth
plan achieved a growth of 6.8% as against the target of 5.6%.The ninth plan aimed at a GDP
growth of 7%. Due to economy’s poor performance during 1997-98, the target was reset at
6.5%. Yet, the target was not achieved and the economy grew at a rate of 5.4%.The tenth plan
targeted at 8% growth rate. However, it was not successful in poverty reduction, generation of
employment opportunities and development of the agricultural sector. The eleventh plan had set
a target of growth rate of 9%. The achieved growth rate was 9.3% during the first year but it saw
a drastic fall to 6.7% in 2008-09 due to a global financial crisis. The twelfth five year plan
achieved a growth rate of 8%.

CONCLUSION-
The Five-Year Plans were discontinued by the Narendra Modi-led NDA government in 2015.
Hence, the twelfth five-year plan is considered to be the last five-year plan of India. These five
year plans were replaced by a three- year action plan that would be part of the seven year
strategy and a 15 year visionary document. The Niti Aayog has replaced the Planning
Commission under the Modi Cabinet in 2015 and launched the three year action plans from April
1, 2017, onwards.

REFERENCES
1) Planning commission report
2) DU SOL Notes
3) NCERT class 11 th