PT.

JAWAHARLAL GULZARI LAL LAL BAHADUR MORARJI DESAI

INDIRA GANDHI
NEHRU (Aug. 15, 1947 NANDAA (May 27, 1964 SHASTRI ( June 9, 1964 (March 24, 1977 to July
(Jan. 14 to Oct. 31,1984)
to May 27, 1964) to June 9, 1964) to January 11, 1966) 28, 1979)

CHARAN SINGH RAJIV GANDHI P. V. NARASIMHA RAO

V.P. SINGH CHANDRA SHEKHAR
(July 28, 1979 to Jan. 14, (Oct. 31,1984 till Dec. (June 21, 1991 to May
(Dec. 2,1989 till Nov. (Nov. 10,1990 till June
1980) 1,1989) 10, 1996 )
10, 1990) 21, 1991)

H D DEVE GOWDA I. K. GUJRAL A. B. VAJPAYEE DR. MANMOHAN

A. B. VAJPAYEE
(June 1, 1996 to April 21, (April 21, 1997 Nov. 28. (March 19, 1998 Till May SINGH
(May 16 to June 1, 1996)
1997) 1997) 13, 2004) (May 22, 2004 Till Date)
 Six Decades of
Development of Indian
Economy
Presented By:-
Rahul Jagetiya(78)
Nimesh Momaya(91)
Prashant Rajani(102)
 Planning Process in India
 The planning process in India has both a hierarchic and
interactive character since we operate within the framework
of a federal democratic political structure. The Planning
Commission in India was set up on March 1950.

 The plan, as it is formulated, has three distinctive

components:-
• A long term perspective plan.
• A five year plan.
• Annual plan.
 Why Planning Commission?

 The Planning Commission in India was set up on March

1950 to promote a rapid rise in the standard of living of
the people by utilizing the resources of the country,
increasing production and offering employment
opportunities to all.

 Make periodic assessment of all resources in the

country.

 Formulates plans for the most efficient an judicious

utilization of resources.
Structure

Chairman

Deputy
Chairman

Secretary

Member
 Objectives of Planning
Commission

 Standard of living.
 Increasing production.
 Employment.
 Augmenting deficient resources.
 Utilization of resources.
 Determining priorities.
 Functions of the Planning Commission

 To make an assessment of the resources of the country

and to see which resources are deficient.

 To formulate plans for the most effective and balanced

utilization of country's resources.

 To determine the machinery, that would be necessary

for the successful implementation of each stage of plan.

 Periodical assessment of the progress of the plan.

 To indicate the factors which are hampering
economic development.

 With the changing times, the Planning

commission is preparing itself for long term
vision for the future.

 The commission is seeing to maximize the

output with minimum resources.
 Why five year plans?
 When India gained independence, its economy was
groveling in dust. The British had left the Indian
economy crippled and the fathers of development
formulated 5 years plan to develop the Indian
economy. The five years plan in India is framed,
executed and monitored by the Planning Commission
of India.
 First five year plan
(1951-1956)
First chairman of the Planning commission was Pandit
Jawaharlal Nehru.

India faced three formidable problems:-

• Severe food shortage.
• Mounting Inflation.
• And the influx of refugees.
 Objectives

Development of Agriculture.

Control Inflation.

Standard of Living.

Land Rehabilitation.
 Major Events
 Dam.
 Hirakud:- One of the largest dams in the world. Its total
length is 25.8 km. The construction was completed in
1953.
 Bhakra:- One of the highest gravity dams in the world.
The construction began in the year 1955 and the dam
was completed in the year 1963.

 Taxation Enquiry Commission.

 State Bank of India (1955)

 Second Five Year Plan
(1956-1961)

 This plan was headed by Pandit Jawarahlal Nehru.

 The Mahalanobis model.

 Importance given to Industry sector.

 Development of public sector.

 Mahalanobis Model

Assumptions:-
 Economy is closed.
 The economy consists of two sectors: consumption
goods and capital goods.
 Capital goods are non- shiftable.
 Full capacity production.
 Investment is determined by supply of capital goods.
 No changes in prices.
 Capital is the only scarce factor.
 Major Events

 Hydro-electric Power.

 Steel Mills.

 Atomic energy commission.

 Tata institutes of fundamental research.

 Coal production was increased.

 More railway lines were added in the north east.

 Wealth Tax (1957).

 Gift Tax (1958).

 Third Five Year Plan
(1961-1966)

Chairman of planning commission was Pandit

Jawarahlal Nehru.

Top Priority to Agriculture.

Increasing national income by 5% p.a.

Minimization of Unemployment.
 Major Events

 Sino Indian War (1962).

 Shifted the focus towards the Defense Industry.

 Stress on the agricultural sector.

 Many cement and fertilizers plants were also built.

 India-Pakistan War(1965-66).

 The war led to inflation and the priority was shifted to

price stabilization.
 4th Five Year Plan
(1969 to 1974)
 The 4th Five Year Plan commenced on 1969 and extended till 1974.

 This plan was headed by Indira Gandhi.

 Green Revolution in India.

 Stepping stone for the economic growth.

 Two objectives were:

 Growth with stability

 Self Reliance
 Major Events
 Recession

 Foreign reserves
 Industrial development
 Indo-Pakistani War
 Socio economic structure
 5th Five Year Plan
(1974 to 1979)

 The 5th Five Year Plan commenced on 1974 and extended till 1979.

 This plan was headed by Morarji Desai.

 In this plan stress was led on employment, poverty & justice.

 The objective of the 5th Five Year Plan was to increase the level of
employment, reduce poverty and to attain self sufficiency in
agriculture.

 It emphasized on putting the economic growth at par with each

other.
 Major Events
 Establishment of Regional Rural Banks

 Indirect Taxation Committee

 Industrial Policy Statement

 Contents of the 5th Five Year Plan
(1974 to 1979)
 Improvingthe agricultural condition by implementing land
reform measures.

 Improving the scope of self-employment through a well

integrated program.

 Reducing the rate of unemployment both in the urban and the

rural sectors.

 Encouraging growth of the small scale industries.

 Enhancing the import substitution in the spheres including

chemicals, paper, mineral and equipment industries.
 6th Five Year Plan
(1980 to 1985)

 The 6th Five Year Plan commenced on 1980 and extended

till 1985.

 This plan was headed by Indira Gandhi.

 Price controls were eliminated and ration shops were closed.

 This was the end of Nehruvian Plan

 Thesixth five year plan had improved the tourism industry in

India and on the other hand it aimed at development in the
Information Technology sector.
 Major Events
 Establishment of NABARD
 Economic liberalization
 Transport and Communication System
 Measures Against Population Explosion
 7th Five Year Plan Of India
(1985 to 1989)

 The7th Five Year Plan commenced on 1985 and extended till

1989.

 This plan was headed by Rajiv Gandhi.

 ThisFive Year Plan was the come back vehicle of the Indian
National Congress Party into power.

 Theprimary aim of the these plan was to upgrade the industrial

sector and enable India to establish itself as one of the
developed countries of the world.
 Objectives
 Social Justice
 Economic productivity
 Generating employment opportunities
 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
 Major Events

 Environment Protection act Enacted.

 Reduced License Raj.
 Telecommunication.

 Establishment of National Housing Bank

 8th Five Year Plan Of India
(1992-1997)

 Health & Education.

 Full Employment.

 Elimination of poverty.

 Containment of population growth.

 Events
 Economic liberalization.

 SEBI Act 1992.

 Insurance sector.

 Foreign Investment up to 51%.

 National Stock Exchange.

 Agricultural Activities During this
Period
 Agriculture happens to be the largest contributor
to the GDP of India. In fact two third of the
work force was dependent on agriculture.
Industries also made use of agricultural produce
as inputs in their production process.

 Production of food increased from 51m –

176.22m.
 Ninth five year plan
(1997-2002)
 Industrialization at a rapid pace.

 Reduction in poverty level.

 Gaining self-sufficiency on local resources.

 To create a liberal market for increase in

private investments.
 Events
 Modified EXIM Policy April 1998.

 Telecom regulatory Authority of India.

 Nuclear Test.

 Sarva Shiksha Abhiyan.

 Pradhan Mantri Gram Sadak Yojana.

 National Highway Development Project.

 Tenth Five Year Plan
(2002-2007)
 Back ground of developments in 1990’s.

 GDP growth in the post reforms period improved

to an average of 6.1% from average of 5.7%in 1980’s.

 Percentage of population in poverty continued to

decline.

 Population growth decelerated below 2% for first

time in four decades.
 Sector such as such as software , service and
IT services have emerged as a new sources .

 Literacy increased from 52% to 65% in 2001.

Weakness observed in Economy
 Growth in 90s has generated less employment than
expected.

 The infant mortalitaty rate has stagnated at 70 per

1000.

 60% of rural and 20% of urban do not have power ,

water connection and sanitary facilities.

 Population in cities is on increase.

 Objective
 Attain 8% GDP growth per year.
 Reduction of poverty ratio by 5 percentage
points by 2007.
 Providing gainful and high-quality
employment.
 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.
 The 10th Five year Plan of India in a nutshell
 Increasing the mobility of all the
available financial resources of India, and
optimizing them as well.

 Setting up of a state-of-the-art infrastructure for all

the existing industries in India.

 Encourage the initiative of capacity building within

the Indian industrial sector.

 Creating a friendly,
pleasant investment environment in India.
 Encouraging sufficient transparency in the
corporate sectors of India

 Introduction of reforms in the industrial

sectors, which are more investor-friendly in
nature
 Events
 Monsoon failure.
 Agricultural insurance company on India Ltd.
 Foreign Exchange Reserves cross US$ 100
billion.
 Kasturba Gandhi Balika Vidyalaya Scheme.
 Indo-US Nuclear Agreement.
 Eleventh five year plan
(2007-2012)
 To restructure policies to achieve a new vision
based on faster, more broad-based and
inclusive growth.

 The plan has the main objective of putting

economy on sustainable growth rate of 9% by
the end of this plan.
10
9
8
7
6
5 Target
Growth Rate
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11