Changes in the structure of

economy
SECTORS OF INDIAN ECONOMY
Primary sector: exploitation of natural resources agriculture
sector, forestry, fishing, mining, quarrying.
Secondary sector: industrial acctivities like manufactring,
construction, elictricity, gas, water supply.
Tertiary sector: services like trade, hotels, transport,
communication, financing, insurance, real, estate, community,
social, personal services.
Quaternary sector: all intellectual activities related to any
business.
Quinary sector: all strategic activities i.e. related to long term
planning.
 RATE OF GROWTH OF GDP
YEAR RATE OF GROWTH OF GDP AT
FACTOR COST
2004-05 7.5
2005-06 9.5
2006-07 9.7
2007-08 9.2
2008-09 6.7
2009-10 7.2
 CHANGES IN SECTORAL SHARE IN GDP
SECTORS 2005- 2006- 2007- 2008- 2009-
06 07 08 09 10

PRIMARY 4.7 4.3 4.6 1.6 -0.2

SECONDARY 10.2 13.2 10.1 4.1 8.2

TRADE, HOTEL.. 12.1 11.7 10.7 7.6 8.3

FINANCING, INSUR.
12.8 14.5 13.2 10.1 9.9
COMMUNITY, SOCIAL
SERVICES 7.6 2.6 6.7 13.9 8.2

9.5 9.7 9.2 6.7 7.2

GDP AT FACTOR COST
 AVERAGE ANNUAL GROWTH RATES OF
NATIONAL INCOME
FIRST PLAN ( 1951-56) 4.4
SECOND PLAN (56-61) 4
THIRD PLAN (61-66) 2.6
ANNUAL PLAN (66-69) 3.9
FOURTH PLAN (69-74) 3.1
FIFTH PLAN (74-79) 4.9
AANUAL PLAN (79-80) -6.0
SIXTH PLAN (80-85) 5.4
SEVENTH PLAN (85-89) 5.5
ANNUAL PLAN (89-92) 3.1
EIGHTH PLAN (92-97) 6.7
NINTH PLAN (97-2002) 5.3
TENTH PLAN (2002-2007) 7.8
FIVE YEAR PLANS
ANNUAL PLANS (1989-91)
Political instability
Crisis in foreign reserves, left with
reserves of only about $ 1 billion.
Economic reforms initiated under
P.V.Narashima Rao and Dr. Manmohan
Singh.i.e., privatization and
liberalization of India.
FIRST FIVE YEAR PLAN
Presented by first prime minister on 8 th December 1951,
known as repair plan.
Major focus was on agrarian sector including
investments in dams and irrigation.(27 percent of total
budget).
High crop yield, boosting exchange reserves and per
capita income, irrigation projects initiated.
WHO addresed childrens health & reduced infant
mortality…
At the end of the plan 5 IIT’s were started as major
technical institutions. UGC was setup to take care of
higher education in India.
Contracts were signed to start 5 steel plants.
Target growth was 2.1 and achieved was 3.6 percent.
SECOND FIVE YEAR PLAN
Based on Mahalanobis model: optimal allocation of
investment between productive sectors to maximise
long run economic growth.
Focused on heavy industry, particularly for the
development of public sector. Like atomic energy,
hydroelectric power projects, steel plants.
Atomic energy commission was formed in 1958 with
Homi J. Bhabha.
Growth rate expected at 4.5, only 4.2 percent was
achieved due to wrong assessment of food situation
& fast growth of industrialization, led to various
problems like food shortage, price rise, foreign
exchange problem, unemployment.
THIRD FIVE YEAR PLAN
EIGHTH FIVE YEAR PLAN (92-97)
Controlling population growth, poverty reduction, employment
generation, strengthening infrastructure, institutional building,
tourism management, HR mgt, involvement of panchayat raj,
nagarpalikas, NGO, decentralisation.
Energy sector was given priority (26.6 )
Opening of Indian economy to improve deficit and foreign
debt.
India became a member of WTO on Jan 1, 1995.
Agribusiness was encouraged.
Quantitative restrictions were removed.
Expected annual growth was 6.5 and achieved was 5.6
percent.
NINTH FIVE YEAR PLAN (1997-2002)
Formulated on the backdrop of India’s golden jubilee of
independence.
Increase in oil prices.
East Asian crisis in 1997-98.
Speedy industrialization, human development, full scale
employment, poverty reduction, self reliance on domestic
resources, population control.
Stabilization of prices, food and nutritional security, provide basic
infrastructure facilities to all.
Encourage social issues like women empowerment, conservation
of certain benefits for the special groups of the society.
To create liberal market for increase in private investments.
TENTH FIVE YEAR PLAN (02-07):
Reduction of poverty ratio by 5 percentage points by
2007.
providing gainful and high quality employment.
all children to complete 5 years of schooling by 2007.
Reduction in gender gaps in literacy and wage rates
by at least 50 percent by 2007.
Increase in literacy rates to 75 percent within the
tenth plan period.
Aimed at 8 percent growth rate, it actually achieved
7.6 percent per annum.
ELEVENTH FIVE YEAR PLAN
Aims at putting the economy on a
sustainable growth rate of approx 10
percent per annum.
It was designed to reduce the poverty
and focus on bridging the various
divides that continue to fragment our
society.
OBJECTIVES OF ELEVENTH FIVE YEAR
PLAN

INCOME AND POVERTY

Accelerate GDP growth from 8 to 10 percent
to double the PCI by 2016-17.
Increase agricultural GDP growth rate to 4
percent.
Create 70 million new work opportunities.
Reduce educated unemployment to below 5
percent.
Raise real wage rate of unskilled workers by
20 percent.
EDUCATION
Reduce dropout rates of children from
elementary school
Increase literacy rate for persons of age
7 years or above to 85 percent.
Lower gender gap in literacy to 10
percentage points.
HEALTH:
Reduce infant mortality rate to 28 percent
and maternal mortality to 1 per 1000 live
birth.
Reduce total fertility rate to 2.1 percent.
Provide clean drinking water to all.
Reduce malnutrition among age group of 0-3.
Reduce anaemia among women and girls by
50 percent at the end of this plan.
WOMEN & CHILDREN :
Raise the sex ratio for age group of 0-6 to
935 by 2011-12.
Ensure that at least 33 percent of the direct
and undirect benefeciaries of all government
schemes are women and girls.
Ensure that all children enjoy a safe chilhood,
without any compulsion to work.
INFRASTRUCTURE:
Ensure electricity connection to all
villages and BPL households by 2009
and round the clock power.
Connection to all habitation by 2015.
Connect every village by telephone.
Provide homestead sites to all by 2012.
ENVIRONMENT:
Increase forest and tree cover by 5
percentage points.
Attain WHO standards of air quality in
all major cities by 20011-12.
Treat all urban waste water by 2011-
12 to clean river waters.