EIGHT

FIVE
YEAR
z

PLAN SUMITTED TO-

AR.NEETI KHANNA

(1992-97)
SUBMTTED BY-
HARSH SHARMA
SUMIT SINGH
SWECHHA TAK
TANVI AGARWAL
 INTRODUCTION
• THE EIGHTH FIVE YEAR PLAN WAS APPROVED BY THE NATIONAL ECONOMIC COUNCIL (NEC)
ON MAY 31, 1994.

• EIGHTH FIVE YEAR PLAN ARE :-

• INDIA RUNS THROUGH THE PERIOD FROM 1992 TO1997 WITH THE MAIN AIM OF ATTAINING
OBJECTIVES LIKE MODERNIZATION OF THE INDUSTRIAL SECTOR, RISE IN THE EMPLOYMENT
LEVEL, POVERTY REDUCTION, AND SELF-RELIANCE ON DOMESTIC RESOURCES.
• THE PRIMARY AIM OF THE PLAN IS TO ATTAIN A SUSTAINED ECONOMIC GROWTH IN AN
ENVIRONMENT OF MACROECONOMIC STABILITY, EQUITY AND JUSTICE.

SIZE:
ON 1992-93 PRICES, THE SIZE OF THE PLAN WAS RS. 1701 BILLION WHILE ITS SIZE GOES TO
RS. 2092 BILLION ON 1993-94 PRICES.
  

AIMS OF THE EIGHTH FYP

MODERNIZATION OF INDUSTRIES WAS A MAJOR HIGHLIGHT OF THE EIGHTH PLAN.
 ◦ CONTROLLING POPULATION GROWTH
 ◦ POVERTY REDUCTION ◦ EMPLOYMENT GENERATION
 ◦ STRENGTHENING THE INFRASTRUCTURE
 ◦ INSTITUTIONAL BUILDING (EMPOWERING OF PANCHAYATI RAJ THROUGH THE
74TH AMENDMENT ACT OF 1992)
 ◦ TOURISM MANAGEMENT
 ◦ HUMAN RESOURCE DEVELOPMENT
 ◦ DECENTRALIZATION
 ◦ ENERGY WAS GIVEN PRIORITY WITH 26.6% OF THE OUTLAY
 ◦ THE EIGHTH PLAN PROPOSED A GROWTH RATE OF 5.6% PER ANNUM ON AN
AVERAGE DURING THE PLAN PERIOD.’
MAJOR OBJECTIVES
A)   TO ATTAIN 7% P.A. GROWTH IN GDP ,MOBILITY SOURCES AND EFFICIENT USE OF EXISTING
RESOURCES;
(B)  TO ENCOURAGE PARTICIPATION OF ALL PEOPLE IN THE DEVELOPMENT PROCESS AND A
MORE EQUITABLE SHARING OF THE BENEFITS;
(C)   TO GENERATE ADDITIONAL EMPLOYMENT OPPORTUNITIES BY EXPANDING PRODUCTIVE
AVENUES THROUGH PRIVATE INITIATIVE AS WELL AS GOVERNMENT POLICIES AND
PROGRAMMES;
(D)  TO ALLEVIATE POVERTY THROUGH AN INTEGRATED APPROACH OF INCOME GENERATION,
WELL DISPERSED ACCESS TO SOCIAL AND COMMUNITY SERVICES, HUMAN RESOURCE
DEVELOPMENT, EXTENSION OF PHYSICAL INFRASTRUCTURE, POPULATION WELFARE AND
SPECIAL PROGRAMMES FOR TARGETED GROUPS AND AREAS;
(E)   TO ENSURE GREATER SELF-RELIANCE, PARTICULARLY IN FOOD, ENERGY, PUBLIC
FINANCE AND EXTERNAL BALANCE;
(F)     TO CONSERVE NATURAL RESOURCES AND ENSURING PROTECTION OF ENVIRONMENT;
(G)  TO PROMOTE GOOD GOVERNANCE; AND
(H)  TO ENSURE MACROECONOMIC STABILITY AND DISCIPLINE.

ACHIEVEMENTS
 RISE IN THE EMPLOYMENT LEVEL
POVERTY REDUCTION
SELF-RELIANCE ON DOMESTIC RESOURCES
SELF-SUFFICIENCY IN AGRICULTURAL PRODUCTION
GDP GROWTH PER ANNUM 5.6
 THE SITUATION OF THE NATION DURING THE EIGHTH FYP-
 ◦ 1989–91 WAS A PERIOD OF ECONOMIC & POLITICAL INSTABILITY IN INDIA AND
HENCE NO FIVE-YEAR PLAN WAS IMPLEMENTED.

 ◦ UNEMPLOYMENT AND UNDER EMPLOYMENT.

 ◦ INDIAN INTERVENTION IN THE SRI LANKAN CIVIL WAR

 ◦ RAJIV GANDHI ASSASSINATION

 ◦ DEMOLITION OF BABRI MASJID

 ◦ SOCIAL STIR CAUSED BY MANDAL COMMISSION

 ◦ INSURGENCY IN JAMMU AND KASHMIR

 ◦ IN 1991, INDIA FACED A CRISIS IN FOREIGN EXCHANGE (FOREX) RESERVES, LEFT

 WITH RESERVES OF ONLY ABOUT US$1 BILLION.
WHAT WAS THE EIGHTH FYP & WHY WAS IT SO SIGNIFICANT FOR MODERN INDIA
 ◦ MAGIC OF P.V NARASIMHA RAO (THE 10TH PM) LED ONE OF THE MOST IMPORTANT ADMINISTRATIONS
IN INDIA'S MODERN HISTORY, OVERSEEING A MAJOR ECONOMIC TRANSFORMATION AND SEVERAL
INCIDENTS AFFECTING NATIONAL SECURITY.

 ◦ AT THAT TIME DR. MANMOHAN SINGH (FORMER PRIME MINISTER OF INDIA) 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.

 ◦ TOGETHER IT WAS KNOWN AS THE “RAO AND MANMOHAN MODEL OF ECONOMIC DEVELOPMENT”

 ◦ INDIA BECAME A MEMBER OF THE WORLD TRADE ORGANIZATION ON 1 JANUARY 1995.

HOUSING
• MAIN FOCUS “SHELTER FOR ALL”
• PROVISION OF BASIC INFRASTRUCTURE FACILITIES IN RURAL AND URBAN AREAS EXTEND TO IMPROVE THE
OVERALL ENVIRONMENT OF HABITAT AND PROVIDE APPROPRIATE CONDITIONS FOR THE MAJORITY OF
THE HOUSEHOLDS TO HAVE ACCESS TO HOUSING
• REMOVAL OF LEGAL CONSTRAINTS TO INCREASE SUPPLY OF SERVICED LAND AS WELL AS RENTAL
HOUSING.
• ENCOURAGE USE O F LOW-COST BUILDING MATERIALS AND COST-EFFECTIVE TECHNOLOGIES.
• THE HOUSING POLICY SHOULD AIM AT INCREASING THE SUPPLY OF SERVICES, LAND AND LOWCOST
SHELTER, IMPROVING SLUMS AND CONSERVING EXISTING HOUSING STOCK.
 PROVISION OF BASIC INFRASTRUCTURE FACILITIES IN RURAL AND URBAN AREAS EXTEND TO IMPROVE THE
OVERALL ENVIRONMENT OF HABITAT AND PROVIDE APPROPRIATE CONDITIONS FOR THE MAJORITY OF
THE HOUSEHOLDS TO HAVE ACCESS TO HOUSING.
 EFFECTIVENESS OF EIGHTH FYP
 ◦ THE AVERAGE RATE OF GROWTH OF THE ECONOMY ROSE FROM 6 PER CENT PER ANNUM IN THE
SEVENTH PLAN (1985-90) TO 6.8 PERCENT IN THE EIGHTH PLAN (1992-97). GROWTH AVERAGED A HIGH
OF 7.5 PER CENT PER ANNUM IN THE LAST THREE YEARS OF THE EIGHTH PLAN (1994-95 TO 1996-97).

 ◦ THE AGRICULTURAL SECTOR REGISTERED AN ANNUAL GROWTH RATE OF ABOUT 3.9 PER CENT
DURING THE EIGHTH PLAN PERIOD.

 ◦ THE INDUSTRIAL PRODUCTION INCREASED AT THE RATE OF 8.6 PER CENT PER ANNUM.

 ◦ EMPLOYMENT GENERATION AND ANTIPOVERTY PROGRAMS HAVE STARTED SHOWING POSITIVE

RESULTS.
PERFORMANCE:
:
THE FORMAL APPROVAL OF THE EIGHTH PLAN IS ONE YEAR LATE. THE ECONOMIC GROWTH IN THE
FIRST YEAR OF THE PLAN 1993-98 WAS ONLY 4%. DUE TO CONSECUTIVE DAMAGE TO THE COTTON
CROP AND DECREASED WHEAT PRODUCTION, AND THE WORST POLITICAL CONDITIONS IN THE
COUNTRY, THE ACHIEVEMENT OF 7% GDP GROWTH IN THE NEXT FOUR YEARS BECOMES DIFFICULT. SEE
THE FOLLOWING
MASTERMINDS OF 8TH FYP
 ◦ P. V. NARASIMHA RAO, CHAIRMAN
 ◦ PRANAB MUKHERJEE, DEPUTY CHAIRMAN
 ◦ MANMOHAN SINGH, MEMBER
 ◦ SHARAD PAWAR, MEMBER
 ◦ BALRAM JAKHAR, MEMBER
 ◦ H.R. BHARDWAJ, MEMBER
 ◦ CHITRA NAIK, MEMBER
 ◦ D. SWAMINADHAN, MEMBER
 ◦ V. KRISHNAMURTHY, MEMBER
 ◦ C. RANGARAJAN, MEMBER
 ◦ J. S. BAJAJ, MEMBER
 ◦ JAYANT PATIL, MEMBER
 ◦ S. Z. QASIM, MEMBER
 ◦ N. K. SENGUPTA, SECRETARY