FIRST FIVE YEAR PLAN (1951-1956)

Aditya Singh
Rahul Savalia
Saharsh Poddar
(ABM)
THE PLANNING COMMISSION
 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 official Chairman, the commission

has a nominated Deputy Chairman, who has rank of a Cabinet minister.

 Montek Singh Ahluwaliya is currently the Deputy Chairman of the

Commission. The tenth plan completed its term in March 2007 and the
eleventh plan is currently underway.
1ST FIVE YEAR PLAN
 The first Indian Prime Minister, Jawaharlal Nehru
presented the first five-year plan to the Parliament of India
on December 8, 1951.

 The first plan sought to get the country's economy out of

the cycle of poverty.

 The plan addressed, mainly, the agrarian sector, including

investments in dams and irrigation.
CONTD..

 The total plan budget of 206.8 billion INR 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).
PATTERN OF OUTLAY
Areas Rs. Crores % of Total

Agriculture and Community Development 361 17.50%

Irrigation 168 8.10%
Multi-purpose Irrigation and Power Projects 266 12.90%
Power 127 6.10%
Transport and Communications 497 24.00%
Industry 173 8.40%
Social Services 340 16.40%
Rehabilitation 85 4.10%
Others 52 2.50%
Total 2069 100.00%

Source - Planning commission website

ACHIEVEMENTS
 The target growth rate was 2.1 percent annual gross
domestic product (GDP) growth; the achieved growth rate
was 3.6 percent.

 During the first five-year plan the net domestic product

went up by 15 percent.

 The monsoon was good and there were relatively high crop
yields, boosting exchange reserves and the per capita
income, which increased by 8 percent.
CONTD..
 National income increased more than the per capita
income due to rapid population growth.

 Many irrigation projects were initiated during this period,

including the Bhakra Dam and Hirakud Dam.

 The World Health Organization, with the Indian

government, addressed children's health and reduced infant
mortality, indirectly contributing to population growth.
IMPORTANCE TO AGRI-SECTOR
 It gave importance to agriculture, irrigation and power
projects to decrease the countries reliance on food grain
imports, resolve the food crisis and ease the raw material
problem especially in jute and cotton.
 
 Nearly 45% of the resources were designated for
agriculture, while industry got a modest 4.9%.

 The focus was to maximize the output from agriculture,

which would then provide the impetus for industrial
growth.
THANK YOU