5 YEAR PLAN WITH SPECIAL REFERENCE TO 11TH AND 12TH PLAN

GROUP 3
MANVI AGARWAL SHRUTI JINDAL SHANKY SHARMA ABDUR REHMAN HEMA SEHGAL PRATEEK RATHOR SHREEYANSH BHASKAR (142) (146) (180) (157) (143) (149) (175)

FLOW OF PRESENTATION

Introduction to five year plans Eleventh five year plan- objectives FRBM Act Industry Services Schemes Twelfth five-year plan

A PLAN
A Plan is a deliberate attempt to spell out how the resources of a country should be put to use. It has some general and specific goals, which are to be achieved within a specific period of time. The general goals of a Plan are growth, modernization, full employment, self-reliance and equity. But all Plans may not give equal importance to all of them. Each Plan can have some specific goals like improvement of agriculture. For example our first five-year plan was geared to improving the state of agriculture and the second to improving Industry.

Planning commission of India

The Planning Commission was set up in March, 1950 by a Resolution of the Government of India. The economy of India is based on planning through its five-year plans, developed, executed and monitored by the Planning Commission . With the Prime Minister as the ex officia Chairman, the commission has a nominated Deputy Chairman, who has rank of a Cabinet minister. Currently The eleventh plan completed its term in March 2012 and the twelfth plan is currently underway And Prime minister Mr Manmohan Singh is the chairman and Mr. Montek Singh Ahluwaliya is the Deputy Chairman of the Commission.

OBJECTIVE OF PLANNING COMMISSION

AS OUTLINED BY THE GOVERNMENT'S 1950 RESOLUTION:

To make an assessment of the material, capital and human resources of the country, including technical personnel, and investigate the possibilities of augmenting those resources which are found to be deficient in relation to the nation's requirement. To formulate a plan for the most effective and balanced utilization of country's resources. To define the stages, on the basis of priority, in which the plan should be carried out and propose the allocation of resources for the due completion of each stage. To indicate the factors that tend to retard economic development. To make necessary recommendations from time to time regarding those things which are deemed necessary for facilitating the execution of these functions. Such recommendations can be related to the prevailing economic conditions, current policies, measures or development programmes .

First plan (1951-1956)

1. The first Indian Prime Minister, Pt. Jawaharlal Nehru presented the first five-year plan to the Parliament of India on December 8, 1951. 2. The first plan sought to get the country's economy out of the cycle of poverty. 3. The plan addressed, mainly, the agrarian sector, including investments in dams and irrigation. Agricultural sector was hit hardest by partition and needed urgent attention. 4. The total plan budget of 206.8 billion INR (23.6 billion USD in the 1950 exchange rate) was allocated to seven broad areas: irrigation and energy (27.2 percent), agriculture and community development (17.4 percent), transport and communications (24 percent), industry (8.4 percent), social services (16.64 percent), land rehabilitation (4.1 percent), and other (2.5 percent).

FIRST PLAN (1951-1956)

4. The target growth rate was 2.1 percent annual gross domestic product (GDP) growth; the achieved growth rate was 3.6 percent. 5. During the first five-year plan the net domestic product went up by 15 percent. 6. The monsoon was good and there were relatively high crop yields, boosting exchange reserves and the per capita income, which increased by 8 percent. 7. Many irrigation projects were initiated during this period, including the Bhakra Nangal Dam and Hirakund Dam. 8. At the end of the plan period in 1956, five Indian Institutes of Technology (IITs) were started, University Grant Commission was set up , Contracts were signed to start five steel plants.

Second plan (1956-1961)

1. The second five-year plan focused on industry, especially heavy industry. 2. Domestic production of industrial products was encouraged, particularly in the development of the public sector. 3. The plan followed the Mahalanobis model, an economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953. 4. It used the existing art techniques of operation and research as well as the novel applications of statistical models developed at the Indian Statiatical Institute. 5. The plan assumed a closed economy in which the main trading activity would be centered on importing capital goods.

6. Hydroelectric power projects and five steel mills at Bhilai, Durgapur, and Rourkela were established. 7. Coal production was increased. 8. More railway lines were added in the north east. 9. The Atomic Energy Commission was formed in 1957 with Homi J. Bhabha as the first chairman. 10. The Tata Institute of Fundamental Research was established as a research institute. 11. In 1957 a talent search and scholarship program was begun to find talented young students to train for work in nuclear power.

Third plan (1961-1966)

1. The third plan again stressed on agriculture and improving production of rice. 2. The Sino-Indian war led to inflation and the priority was shifted to price stabilization. 3. Many cement and fertilizer plants were also built. 4. Punjab began producing an abundance of wheat due high investment in this sector and use of high yielding variety of wheat called lerma rojo . 5. Panchayat elections were started and the states were given more development responsibilities. 6. State electricity boards and state secondary education boards were formed.

Fourth plan (1969-1974)

1. The Indira Gandhi government nationalized 14 major Indian banks and the Green Revolution in India advanced agriculture. 2. In addition, the situation in East Pakistan (now independent Bangladesh) was becoming dire as the Indo-Pakistani War of 1971 and Bangladesh Liberation War took place. Funds earmarked for the industrial development had to be used for the war effort. 3. India also performed the Smiling Buddha underground nuclear test in 1974, partially in response to the United States deployment of the Seventh Fleet in the Bay of Bengal to warn India against attacking West Pakistan and widening the war.

Fifth plan (1974-1979)

1. Stress was laid on employment, poverty alleviation, and justice. 2. The plan also focused on self-reliance in agricultural production and defense. 3. Electricity Supply Act was enacted in 1975, which enabled the Central Government to enter into power generation and transmission 4. In 1978 the newly elected Morarji Desai government terminated this plan 1 year before its schedule

Sixth plan (1980-1985)

1. It aimed for rapid industrial development, especially in the area of information technology. 2. The Indian national highway system was introduced for the first time and many roads were widened to accommodate the increasing traffic. 3. Tourism also expanded. 4. The sixth plan also marked the beginning of economic liberalization. Price controls were eliminated and ration shops were closed. This led to an increase in food prices and an increased cost of living. 5. Family planning also was expanded in order to prevent overpopulation. More prosperous areas of India adopted family planning more rapidly than less prosperous areas, which continued to have a high birth rate.

Seventh plan (1985-1990) 1. The plan lay stress on improving the productivity level of industries by up gradation of technology. 2. The thrust areas of the 7th Five year plan were: Social Justice Removal of oppression of the weak Using modern technology Agricultural development Anti-poverty programs Full supply of food, clothing, and shelter Increasing productivity of small and large scale farmers Making India an Independent Economy

Period between 1989-91

1. 1989-91 was a period of political instability in India and hence no five year plan was implemented. Between 1990 and 1992, there were only Annual Plans. 2. In 1991, India faced a crisis in Foreign Exchange (Forex) reserves, left with reserves of only about $1 billion (US). Thus, under pressure, the country took the risk of reforming the socialist economy. 3. Late P.V. Narasimha Rao was the twelfth Prime Minister of the Republic of India and head of Congress Party, and led one of the most important administrations in India's modern history overseeing a major economic transformation 4. At that time Dr. Manmohan Singh launched India's free market reforms that brought the nearly bankrupt nation back from the edge. It was the beginning of privatization and liberalization in India.

Eighth plan (1992-1997)

1. 2. 3. Modernization of industries was a major highlight of the Eighth Plan. Under this plan, the gradual opening of the Indian economy was undertaken to correct the deficit and foreign debt. Meanwhile India became a member of the World Trade Organization on 1 January 1995.This plan can be termed as Rao and Manmohan model of Economic development. The major objectives included, containing population growth, poverty reduction, employment generation, strengthening the infrastructure, Institutional building, Human Resource development, Involvement of Panchayat raj, Nagarapalikas, N.G.OSand Decentralisation and peoples participation. Energy was given prority with 26.6% of the outlay. An average annual growth rate of 6.7% against the target 5.6% was achieved.

4.

5. 6.

Ninth Plan (1997 - 2002)

1. Ninth Five Year Plan of India runs had the main aim of attaining objectives like speedy industrialization, human development, full-scale employment, poverty reduction, and self-reliance on domestic resources. 2. Ninth Five Year Plan was formulated amidst the backdrop of India's Golden jubilee of Independence. 3. The main objectives of the Ninth Five Year Plan India are: to prioritize agricultural sector and emphasize on the rural development to generate adequate employment opportunities and promote poverty reduction to stabilize the prices in order to accelerate the growth rate of the economy to ensure food and nutritional security

Tenth plan (2002-2007)

1. The main objectives of the 10th Five-Year Plan were: Reduction of poverty ratio by 5 percentage points by 2007; Providing gainful and high-quality employment at least to the addition to the labour force; All children in India in school by 2003; all children to complete 5 years of schooling by 2007; Reduction in gender gaps in literacy and wage rates by at least 50% by 2007; Increase in Literacy Rates to 75 per cent within the Tenth Plan period (2002 to 2007); Reduction in the decadal rate of population growth between 2001 and 2011 to 16.2%;

Tenth plan (2002-2007)

Reduction of Infant mortality rate (IMR) to 45 per 1000 live births by 2007 and to 28 by 2012; Reduction of Maternal Mortality Ratio (MMR) to 2 per 1000 live births by 2007 and to 1 by 2012; Increase in forest and tree cover to 25 per cent by 2007 and 33 per cent by 2012;

All villages to have sustained access to potable drinking water within the Plan period;

Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012; 2. Economic Growth further accelerated during this period and crosses over 8% by 2006.

ELeventh plan (2007-2012)

The total size of the Eleventh Plan is Rs. 69,788.00 crores at current prices as against the Tenth Plan approved outlay of Rs. 33,724.96 crores.

The basic objective of eleventh 5 year plan were spelt out as To achieve an overall growth rate of 7.6%. This is envisaged to be achieved through 5% growth in agriculture and allied sectors, 10% growth in industry and 8% growth in service sector. To reduce poverty levels from 38% to 25% To achieve the literacy rate of 84% by the end of the Plan and reduce gender gap in literacy to 14%. To achieve reduction in drop out rate from 46.8% in 2003-04 to 20% by 2011-12 and eliminate gender disparity in

ELeventh plan (2007-2012)

To bring down population growth rate to 1.62% by 2012. To improve the sex ratio to 950 females per 1000 males. To reduce malnutrition to 30% and anemia to 30%. To provide sustainable access to safe potable drinking water to all independent habitations. To empower women through their socio-economic development and increased participation in decision making on matters that directly affect them. To strengthen social, economic and political empowerment of weaker sections of the society through welfare of SCs/STs, OBCs, minorities and poor.

ELeventh plan (2007-2012)

FRBM ACT AND PLAN FINANCING

The Fiscal Reforms and Budget Management Act (FRBMA) enacted in 2003, is an important institutional mechanism to ensure fiscal prudence and support for macro economic balance.

According to the Rules framed under the Act, revenue deficit is to be eliminated by 31 March 2009, and fiscal deficit is to be reduced to no more than 3% of estimated GDP by March 2009.
The process of fiscal consolidation under FRBMA has yielded rich dividends in terms of creating fiscal space for increased spending on infrastructure and social sectors. FRBMA provides the basic structure around which many fiscal measures have been implemented. Some of the important among these include: reducing peak rates of customs duties, rectifying anomalies like inverted duty structure, rationalizing excise duties, relying on voluntary tax compliance, introduction of State-level VAT, increasing productivity of expenditure through an outcome budget framework,etc. The success in fiscal consolidation in the Tenth Plan has provided a good foundation to build the Eleventh Plan.

IMPACT OF FRBM ON CENTERS RESOURCES

The projections assume that FRBMA will ef3fectively constrain the fiscal deficit to the levels indicated, leading to a reduction in debt financing for funding of GBS for the Eleventh Plan. Accordingly, the Centres net borrowings, which stood at 3.47% of GDP in 200607, are projected to decline to 3% in 200809 and remain at this level during the Eleventh Plan. FRBMA not only prescribes the required reduction in fiscal deficit, but also a reduction in revenue deficit by no less than 0.5% of GDP every year and the elimination of such deficit by 200809. The imposition of a zero revenue deficit condition has an impact on total revenue expenditure given revenue receipts. This, in turn, has implications for the composition of Plan expenditure in terms of the revenue component of the Plan.

IMPACT OF FRBM ON STATES RESOURCES

The FRBM legislations in the States prescribe that they should achieve a fiscal deficit of 3% of GDP by the end of 200809. Therefore, the gross fiscal deficit of all the States, which stood at 3.73% of GDP in 200607 has been projected to decline to 3% by 200809 and to remain at this level in the remaining years of the Eleventh Plan. This inevitably limits the scope for mobilizing borrowed resources and the States, therefore, have to look at improving revenue realization and controlling non-Plan expenditure.

INDUSTRY

The Eleventh Plans thrust on accelerated and inclusive growth requires rapid growth in the manufacturing sector with generation of quality employment. The Eleventh Plan had envisaged the manufacturing and general industrial sector growing at an average rate of 1011 per cent, which was about 2 per cent more than that achieved in the Tenth Plan. Manufacturing grew at 9 per cent in 200708, the first year of the Tenth Plan, but slipped to 2.6 per cent in 200809 on account of the adverse effects of the global economic and financial crisis. In the first eleven months of 200910 there was a strong recovery with manufacturing output touching 10 per cent.

Nevertheless, manufacturing output growth during the Plan period will still be far short of the double digit target set out in the Eleventh Plan.

NEW SCHEMES

ILDP
The Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, Govt. of India has approved Indian Leather Development Programme (ILDP) for the leather sector for implementation during the 11th Five Year Plan period 2007-2012.
The thrust of the ILDP scheme is on technology up gradation, modernization, capacity building, addressing environmental concerns, human resource development etc of the leather sector. Attracting investments into the leather sector is also one of the priority areas of ILDP.

Scheme for enhancement of competitiveness in capital goods sector

Setting up of National Institute of Pharmaceutical Education and Research (NIPER) like institutes for pharmaceutical sector

MICRO AND SMALL ENTERPRISE (MSE)

The Plan looks at the MSE sector as an engine for sustained and inclusive economic growth and employment.
MSE generate most of the employment in industry since they are less capital-intensive, entrepreneurial, and dispersed. The Eleventh Plan approach to the MSE sector marks a shift from the welfare approach to that of empowerment. The strategy is two-pronged it focuses on livelihood and social security. This is not just a rights issue but also makes economic common senseartisans and entrepreneurs can be most productive only when they are physically and mentally fit. The Eleventh Plan considers the MSE sector as an important segment of industry which is unorganized and hence needs support and access to all schemes of industry with special enabling provisions.

SCHEMES BY THE MINISTRY OF SMALL, MEDIUM, AND MICRO ENTERPRISES

The Prime Ministers Employment Generation Programme (PMEGP) through which it is expected that additional self-employment opportunities of around 37 lakh will be generated during the Eleventh Plan.
The Micro and Small Enterprises Cluster Development Programme (MSE-CDP)- which is to be undertaken in around 400 clusters in the country. The Programme envisages interventions for capacity building, skill development, technology up gradation, market support, setting up of common facilities centres, and so on, on a cluster basis in labourintensive industries. The National Manufacturing Competitiveness Programme is also being implemented through the ministry for developing the competitiveness of Indian MSMEs. The major components are related to quality improvement technology, up gradation, marketing and information, and communication technology.

AUTOMOBILE SECTOR

It is envisaged that by 2012, the opportunity landscape for the Indian auto industry would encompass manufacture of vehicles and components for domestic sales, manufacture for exports (both vehicles and components) and export of services in areas such as design, engineering, and back office operations.
It is estimated that the total turnover of the automotive industry in India would be of the order of US$ 75.3 billion in 2012 (a substantial increase from the size of US$ 34 billion in 2005-06).

NATIONAL AUTOMOTIVE TESTING AND R&D INFRASTRUCTURE PROJECT ( NATRIP)

An ambitious project on setting up world-class automotive testing and R&D infrastructure in the country to deepen manufacturing, encourage localized R&D, boost exports, converge Indias unparalleled strengths in IT and electronics with automotive engineering sectors to firmly place India in USD 6 trillion global automotive business.

STEEL INDUSTRY

The National Steel Policy 2005 has projected consumption to grow at 7% based on GDP growth of 7%7.5% and production capacity of 110 million tonnes by 201920. The estimates have been revised upward by the Working Group. The Eleventh Five Year Plan Working Group on the steel industry has estimated that the capacity that will actually come up by the terminal year will be 80 million tonnes per annum of crude steel. If steel production is to increase to the projected levels by the end of the Eleventh Five Year Plan, there would be a large requirement of raw materials and other inputs. Increased movement of input and output from the steel industry will be considerably facilitated by the investment envisaged in the Eleventh Five Year Plan in road, rail, and ports

SERVICES
IT AND IT-ENABLED SERVICES
This sector has increased its contribution to India's GDP from 1.2% in FY1998 to 7.5% in FY2012 the ITBPO sector in India aggregated revenues of US$100 billion in FY2012 it accounted for 26 percent of India's exports.

CONSTRUCTION
Construction contributed roughly 8 per cent of GDP in 2011-12 it offered employment to around 33 million, more than any sector aside from agriculture.

SERVICES
TOURISM

Tourism is a multi- sectoral activity characterized by multiple services provided by a range of suppliers. It is contributing towards overall socio-economic improvement and accelerated growth in the economy. expected to grow by 4.3% per annum between 200817

FINANCIAL SERVICES

The financial sector as a whole is estimated to employ between 3.5 million to 4.0 million people, including direct employees and agency forces To support the GDP growth aspiration of 9%10%, the financial sector would need to grow by 25%30% annually over the next five years.

PROGRAMME REFORMS, AND NEW INITIATIVES IN THE ELEVENTH PLAN

Abolishment of the extended tax holidays for the IT units registered with Software Technology Parks of India (STPI). Global Trade Development and Promotion of Global Free Trade in Services Construction Law Taxation

CONTD

During 11th Plan, Ministry of Tourism was sanctioned a Plan outlay of Rs 5156 cr. Against this outlay, allocation during the first four years of the Plan period was Rs 4003 cr.
Provision of tax holiday to the T&T industry may be considered to encourage investments from non-tourism sectors into the tourism sector Positioning and Maintaining Tourism as a National Priority

Enhancing and Maintaining the Competitiveness of India as a Tourist Destination

The financial services sector in the country has been displaying a varying growth rate in the recent past. The annual growth rates since 200001 is :-

AGRICULTURE

Agriculture remains the predominant sector in terms of employment and livelihood. Indias agriculture sector has an impressive long-term record of taking the country out of serious food shortages despite rapid population increase.

GDP from agriculture has more than quadrupled, from Rs 108374 crore in 195051 to Rs 485937 crore but its share in GDP has declined from over half at Independence to less than one-fifth currently. Growth target of 4% per annum in agricultural GDP is a key element of the 11th Plan strategy for inclusive growth

THE WAY AHEAD

The strategy to accelerate agricultural growth to 4% per annum in the Eleventh Plan requires action in the following broad areas:

Bringing technology to the farmers. Irrigation i.e more irrigation in rain fed areas Diversifying, while also protecting food security concerns.

IRRIGATION & WATERSHED

Plan emphasizes expansion of irrigation where possible and also improvement of existing irrigation systems. A major expansion in the Accelerated Irrigation Benefit Programme (AIBP)

More emphasis must be placed on Participatory Irrigation Management (PIM)

The National Rainfed Area Authority (NRAA) was constituted as an expert body to bring technical focus to problems of rainfed agriculture and to advise on design and convergence of various watershed development schemes.

FOOD SECURITY

The Central Government has launched the National Food Security Mission. It aims at increasing cereal and pulses production by 20 million tonnes. This programme concentrates particularly on increasing seed replacement and the replacement of older varieties by newer ones. Rashtriya Krishi Vikas Yojana (RKVY), has been introduced which provides additional financial resource to state governments to finance agriculture development programmes

SCHEMES FOCUSED IN 11TH FIVE YEAR PLAN

Rural Development National Rural Employment Guarantee Scheme (NREGS) job guarantee scheme provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work at the statutory minimum wage of Rs.120 per day Sampoorna Grameen Raojgar Yojana (SGRY) providing gainful employment for the rural poor aims to provide employment and food to people in rural areas who lived below the poverty line.

 Integrated

Wasteland Development Programme (IWDP)

To improve the productivity of wastelands thereby improving the living standards of poor people who own these lands

Drought Prone Area Programme (DPAP) aims at mitigating the adverse effects of drought on the production of crops and livestock and productivity of land, water and human resources. It strives to encourage restoration of ecological balance and seeks to improve the economic and social conditions of the poor and the disadvantaged sections of the rural community.

RURAL HOUSING

Mukhya Mantri Awas Yojana

has been started in Madhya Pradesh with a view to providing dwellings to a large number of houseless families. Financial assistance to 33 thousand 739 families has been made available for constructing their own houses

Bharat Nirman

India plan to create basic rural infrastructure It comprises projects on irrigation, roads (Pradhan Mantri Gram Sadak Yojana), housing (Indira Awaas Yojana), water supply, electrification (Rajiv Gandhi Grameen Vidyutikaran Yojana) and telecommunication connectivity.

Energy

Rajeev Gandhi Grameen Vidyuitikaran Yojana (RGGVY).

aimed at building rural electricity infrastructure and household electrification towards the National Common Minimum Programme goal of access to electricity for all.

Education

Sarva Shiksha Abhiyan

(Education for All Movement) is a programme by the Government of India aimed at the universalization of elementary education Open new schools in areas without them and to expand existing school infrastructures and maintenance. Address inadequate teacher numbers and provide training a development for existing teachers. Provide quality elementary education including life skills with a special focus on the education of girls and of children with special needs, as well as computer education. It provides for vocational and skill development as well as educational development of adolescent girls and women in rural areas

Its goals of 2011 were to do the following:

Mahila Samakhya (MS)

Mid-Day Meal Scheme (MDMS)

enhance enrolment, retention, and participation of children in primary schools, simultaneously improving their nutritional status. revised and universalized in September 2004 and central assistance was provided at the rate of Re. 1.00 per child per school day for converting food grains into hot cooked meals for children The scheme was further revised in June 2006 to enhance the minimum cooking cost to Rs 2.00 per child per school day to provide 450 calories and 12 grams of protein.

HEALTH

National Rural Health Mission

Indian health program for improving health care delivery across rural India The scheme proposes a number of new mechanism for healthcare delivery including training local residents as Accredited Social Health Activists (ASHA), and the Janani Surakshay Yojana (motherhood protection program).

JANANI SURAKSHA YOJANA (JSY)

The scheme has the dual objectives of reducing maternal and infant mortality by promoting institutional deliveries
To meet health needs of the urban poor, particularly the slum dwellers by making available to them essential primary health care services

National Urban Health Mission (NUHM)

Water Supply

Narmada based Water Supply Yojana (sujalam safalam yojna ) - to provide drinking water to 10 scarce district .

Women and Child development

CM Kanyadaan Yojana Bal Sanjivani and Bal Shakti programme :

focused attention on severely nourished and malnourished children through nutritional and health counselling, and treatment

Ladli Laxmi Yojana Adiwasi Kshetron Mein Vishesh Poshan Aahar Yojna

to provide nutritional food three times a day to severely malnourished children registered in Anganwadi centres in identified malnourished clusters

TRANSPORT

Pradhan Mantri Gramin Sadak Yojana

nationwide plan in India to provide good allweather road connectivity to unconnected villages. The goal was to provide roads to all villages

(1) with a population of 1000 persons and above, (2) with a population of 500 persons and above (3) in hill states, tribal and desert area with a population of 500 persons and above (4) in hill states, tribal and desert area villages with a population of 250 persons and above .

THE 12TH FIVE YEAR PLAN

The Union Cabinet on 4 October 2012 approved the 12th five-year plan with its aim to renew Indian economy and use the funds from government in improving the facilities of education, sanitation and health. This plan has seen a three-fold increase in the budget constraints when compared to that of the 11th five-year plan. The plan would infuse a huge fund of Rs 47,70,000 crore and this will help to accomplish the economic growth to an average level of 8.2 percent. 12th five-year plan is guided by the policy guidelines and principles to revive the following Indian economy, which registered a growth rate of meager 5.5 percent in the first quarter of the financial year 2012-13.

Sectored Growth rate comparison of the last 3 5 year plans

AGRICULTURE SECTOR
Key findings for 12th 5 year plan in the agriculture sector : 1.The average growth of about 2% in the Tenth plan has increased to 3% in the Eleventh plan but remain short of the 4% plan target. 2. Overall Investment in agriculture stands at 21% of agri-GDP whereas in 2002-03 is was just 10% 3. Achievement of the target of 4% growth is technically feasible but requires concerted action on several fronts with the states taking responsibility for holistic planning of agriculture based on a farming system centred on the prevailing agro-climatic conditions.

12TH FIVE YEAR PLANS APPROACH FOR THE AGRICULTURE SECTOR

On the basis of restructuring, that created Central Agricultural and Infrastructural Institutes, a new scheme, by juxtaposition of 21 old schemes; and merged some schemes in the RKVY, and created 7 National Mission schemes, and scrapped certain schemes, the following 10 schemes are proposed for inclusion in the 12th Plan. 1.Central Agriculture Infrastructure & Establishment Schme (CAI&ES) 2. National Agriculture Infrastructure and Information Development Scheme (NAIDS) or RKVY (Infra and Info) 3. Rashtriya Krishi Vikas Yojana (RKVY) 4. National Mission on Seeds and Planting Material 5. National Food Security Mission 6. National Oilseeds and Oil-palm Mission 7. National Horticulture Mission 8. National Water Efficiency and Productivity Mission 9. National Mission on Farm Mechanization and Energy 10. National Farmers Income Security Scheme

KEY RECOMMENDATIONS

National mission for sustainable agriculture focuses on enhancing productivity and resilience of agriculture so as to reduce vulnerability to extreme weathers, long dry spells, flooding and variable moisture availability.

Feminisation of agriculture : recognise women as farmers which would enable them to access rural credit
Agriculture plans will include strategies for post production and marketing

MANUFACTURING SECTOR
Goals of National Manufacturing Policy according to the 12th Plan

Increase manufacturing sector growth to 12-14% over the medium term to make it the engine of growth for the economy. The 2% to 4 % differential over the medium term growth rate of the overall economy will enable manufacturing to contribute at least 25% of the National GDP by 2022. Increase the rate of job creation in manufacturing to create 100 million additional jobs by 2022. Creation of appropriate skill sets among the rural migrant and urban poor to make growth inclusive. Increase domestic value addition and technological depth in manufacturing. Enhance global competitiveness of Indian manufacturing through appropriate policy support. Ensure sustainability of growth, particularly with regard to the environment including energy efficiency, optimal utilization of natural resources and restoration of damaged/ degraded eco-systems.

INDUSTRIES THAT WILL BE GIVEN SPECIAL ATTENTION

Employment intensive industries (sectors such as Textiles, Food Processing Industries etc.) Capital Goods (Electrical equipment, Transport Mining and Earth moving equipment etc.) Industries with strategic significance (Aerospace, Shipping, Equipment) Industries where India enjoys a competitive advantage (Such as Pharmaceuticals, Auto) Small and Medium Enterprises Manufacturing-Technology sectors for Energy Security (Solar Energy for example)

EDUCATION SECTOR
Some key points in the 12th plan for the education sector : 1. Shift from SSA(Sarva Siksha Abhiyan) to RTE(Right to Education). 2. Mahila Samakhya which has been successful till now in empowering rural women and educating them, the 12th plan will continue to pour in funds for the MS project. 3. Since a lot of thrust is being given to education sector centre has increased the funding of this sector from Rs 6000 crores to Rs 75266.46 Crores which is 12.5 times more than the amount allocated in the 11th Plan. 4. To expand the higher education sector in all its modes of delivery to increase the Gross Enrolment Ratio (GER) from 15% in 2011-12 to 30% by 2020.

THE FOLLOWING KEY POLICY AND EXECUTION INITIATIVES WOULD BE FOLLOWED IN ORDER TO ENHANCE QUALITY OF HIGHER EDUCATION IN INDIA:
Outcome based research financing Liberal research grants Incubation Centers Ex-post-facto grants for outstanding research and IPR and patent creation Collaboration with R&D in industry and setting up of research parks Lab classroom linkages. Joint appointment with institutions like CSIR, ICAR etc Inter-disciplinary research Centers in frontier areas Out of turn promotions to outstanding researchers Investment on R&D to be enhanced to 1.5% from 0.8%. Industry academia collaboration in research and innovation. IITs and IIMs to be encouraged to devote more resources and energies on R&D. Inviting projects on R&D from abroad. Innovation Universities. Composite grants for research projects. PPP in research and innovation. Implementation of MM Sharma Committee recommendations. Rs. 500 crores to be spent on research in basic sciences every year.

XII Plan envisages a radical shift in the entire governance paradigm in the higher education sphere:

HEALTH SECTOR
Some key recommendations for the health sector in the 12th Plan are : 1. Increase in total public expenditure as a % of GDP. 2. Making resource allocation responsive to local needs as expressed by communities and as assessed by public health studies. 3. User fees needs to be rationalized in both inpatient care and diagnostics. Senior citizens, BPL, new born babies should be given exemptions in diagnostics. 4. Quality of care provided should be standardized and every state should have its own quality assurance mechanism. 5. Health centres should be ISO certified, currently there are 100 such centres and its number needs to be increased to 500.

PROPOSED BUDGET FOR THE 12TH 5 YEAR PLAN

FINAL WORD

India can achieve 8.2% growth rate in the 12th Five Year Plan (2012-17) as envisaged by the Planning Commission, provided steps are taken to address issues like inflation and fiscal consolidation, according to a report by ADB(Asian Development Bank). The 12th Five Year Plan Approach Paper's projection of average 8.2% is achievable, if the issues like reforms, fiscal consolidation plan, investment pipeline addressed," ADB's Managing Director General Rajat Nag Since a lot of proposals will require huge investments from the private parties,(for eg - of the $1 trillion investment required in the infrastructure nearly half the amount will come from the private sector) government needs to relax policies and make necessary reforms which makes it easier for the private sector to make investments in India.

REFERENCES

Economic Environment of Business- 6th edition by Dr. H.L. Ahuja Eleventh Five Year Plan 2007-12 Volume III- agriculture, rural development, industry, services, and physical infrastructure Approach and Salient features of the Eleventh Five Year Plan 200712 Mid-term appraisal of the eleventh five-year plan Faster, Sustainable and More Inclusive Growth- An Approach to the Twelfth Five Year Plan (2012-17) www. planningcommission.nic.in

THANK YOU