FYP 1947-2017

5 year plans (1st)

1951-1956
• Focus : Agriculture, price stability and
infrastructure.
• It was based on Harrod Domer model( Growth
rate of the economy depends upon
investment rate and productivity of capital in a
positive manner)
• Infrastructure in first plan: 5 IITs, dams.
 5 year plans (2nd)
1956-1961
• Target growth rate- 4.5% actual – 4.27%
• Focus: rapid industrialisation
• Also known as mahalanobis plan( advocated
planning shift from agriculture to industries.)
• Emphasis on heavy and basic industry.
• Also advocated import substitution, export
pessimism and overvalue exchanges.
 5 year plans (3nd)
1961-1966
• Target growth rate- 5.6% actual – 2.84%
• Focus: mix of agriculture and industry.
• Economic shocks: wars with pakistan 1965 and
china 1962, severe drought 1965.
 5 year plans (4th)
1969-1974
• Target growth rate- 5.7% actual – 3.3%
• Focus: self sufficiency in food and self reliance
• Objective to improve domestic food production
• Aimed at saying no to foreign aid
• Oil shock of 1973 made remittances a major
source of forex reserves.
• The economy entered a recovery stage from
the economic shocks in the recent years
 5 year plans (5th)
1974-79
• Target growth rate- 4.4% actual – 4.8%
• Focus: “Gareebi Hatao”, removal of poverty
and attainment of seld reliance.
• It was launched and drafted by DP Dhar
• This plan was terminated in 1978 due to the
collapse of government caused by the ripples
from the emergency of 1975.
 5 year plans (6th)
1980-85
• Target growth rate- 5.2% actual – 5.4%
• Focus: boosting economy’s competitiveness and
poverty eradication.
• Stressed on modernisation of technology
• removal of price controls, initiation of fiscal
reforms, a revamp of the public sector,
reductions in import duties, and de-licensing of
the domestic industry, or in other words ending
the licence Raj.
 5 year plans (7th)
1985-90
• Target growth rate- 5.0% actual – 6.10%
• Focus: productivity and work ie employement
generation
• Rajiv gandhi propagated the modernisation of
technology by ushering in the information
technology and telecom revolutions in the
country.
• For the first time the private sector was given
priority over public sector
 5 year plans (8th)
1992-97
• Target growth rate- 5.6% actual – 6.8%
• Focus: “plan with a human face” focused more on human
resource development
• Launch of LPG reforms followed by indicative planning where
targets were set to be achieved by different sectors. NEP ( New
Economic Policy)
• The country, for the first time, had to sell 20 tonnes of gold to
investment bank UBS on 30 May that year to secure a $240
million loan. It pledged gold three more times after that sale,
shipping 46.8 million tonnes of the yellow metal to secure $400
million in loans from Bank of England and Bank of Japan. All this
gold was repurchased by December that year. 
 5 year plans (9th)
1997-2002
• Target growth rate- 6.5% actual – 5.4%
• Focus: Growth with justice and equity
• Stressed upon: quality of life, generation of
productive employment, regional balance and
self reliance.
 5 year plans (10th)
2002-2007
• Target growth rate- 8% actual – 7.7%
• Focus:aimed at doubling the per capita income of the country in
the next 10 years
• Monitorable targets were set for a few key indicators of
development and growth.
• The targets included reduction in gender gaps in literacy and wage
rate, reduction in Infant & maternal mortality rates, improvement
in literacy, access to potable drinking water cleaning of major
polluted rivers, etc. Governance was considered as factor of
development & agriculture was declared as prime moving force of
the economy.
• Greater involvement of the states by panchayati raj
 5 year plans (11th)
2007-2012
• Target growth rate- 8.1% actual – 7.9%
• Faster and more inclusive growth
 Niti Ayoge
• 2015, niti ayoge was established after
removing the planning commission.
• Planning Commission was an extra
constitutional body, charged with the
responsibility of formulating 5-year plans.
• Niti Ayog is a bottom up, whereas planning
commission was a top down body
• Niti Ayog is a policy formulation body.