History – Planning

Commission
 Set up by a Resolution of the Govt. of India in March 1950.

 Objective:
 To promote a rapid rise in the standard of living of the people.

 Responsibilities:
 To make assessment of all resources of the country
 Augmenting deficient resources, formulating plans for the most effective and
balanced utilization of resources
 Determining priorities

 The first Five-year Plan was launched in 1951.

Visionary Leadership: Subhas Bose arriving at Bombay's Victoria Terminus railway station to inaugurate the All
India Industrial Planning Committee meeting.
Forerunner of the Planning Commission of India, the All India Industrial Planning Committee was set up in 1938 by
Bose as Congress president with Pandit Jawaharlal Nehru as its chairman. (HT Library)
 Functions Of
Planning
 Make an assessment - Material, Capital and Human Resources of the
country.

 Formulate a Plan - for the most effective and balanced

utilization of country's resources.

 Determination of priorities

 Indicate factors and Determine the conditions - Social, Economical

and political situation.

 Determine the Tools/Techniques.

 Monitoring at regular intervals - Progress in execution of each stage,

Recommend adjustments of policy and measures.
Organisatio
n
 Dr. Manmohan Singh, Chairman
 Sh. Montek Singh Ahluwalia, Dy. Chairman
 Shri V. Narayanasamy, Minister of State
 Members
 Shri B. K. Chaturvedi
 Saumitra Chaudhuri
 Dr. Syeda Hameed
 Dr. Narender Jadhav
 Prof. Abhijit Sen
 Dr. Mihir Shah
 Dr. K. Kasturirangan
 Sh. Arun Maira
 Ms. Sudha Pillai, Member Secretary
 Senior Officials
 Grievance Officers
Division
s
 CONTROLLER OF ACCOUNTS

 FINANCIAL RESOURCE

 PERSPECTIVE PLANNING

 PROJECT APPRAISAL MANAGEMENT

 PROGRAMME OUTCOME RESPONSE MONITORING

 PROGRAMME EVALUATION ORGANISATION

 SOCIO ECONOMIC RESEARCH

 WOMEN AND CHILD DEVELOPMENT

 Components Of
Planning
National Plans
oLong term Perspective Plans
oFive year Plans
oAnnual Plans

State Plans
 Perspective
Plan
 Purpose :
 To indicate the desired directions of economic activities.
 To serve as pointers in formulating the operational targets that go into
five year plans.

 The perspective plan formulated along two principal lines:

 The part that deals with the overall strategy; also indicates the magnitude and type of resource
mobilization that will be called for as well as with the question of external financing that may
be necessary.

 The other and more detailed part dealing with projected developments in a number of key
sectors of the economy which have significant backward and forward linkages. Once, key
sectors are laid, the perspective plan also tries to indicate a certain time phasing of activities that
will be called for if these objectives are to be realized.
 Annual
Plan
It is the important operational instrument of the five year plans.

It provides an occasion for stocktaking

It also assesses progress of the plan from year to year.

 Five Year
Plan
The documented plan based on recommendations by a large number
of working groups which deal with the major sector of economic
activities.

It lays down broad strategies, objectives, growth rate, sectoral

targets, etc.

Because of our federal nature, every five year plan has:

 A central component
 A state component (social services, agriculture, irrigation, infrastructural
activities such as power, roads etc.)
 Process of five year
plans
 A draft plan is presented for an approval to the National Development
Council, which consist of the planning commission and the chief ministers
of the states.

 The council can make changes to the draft plan.

 After the council's approval, it is presented to the cabinet and subsequently

to parliament, whose approval makes the plan an operating document for
central and state government.

 Chairman, works under the overall guidance of the NDC.

 Deputy chairman and members provide advice and guidance to the subject
divisions for the formulation of five year plans, annual plans, state plans,
monitoring plan progress.
First Five Year Plan(1951-
55)
Objectives:
To correct the disequilibrium in the Indian economy caused by the second
world war and the partition of the country.
To achieve self sufficiency in food grains production and to improve
availability of raw materials
To control inflationary tendencies
To attempt to provide for an all round balanced development which would
ensure a rising, national income and a steady improvement in living standards
over a period of five years.
 Second Five Year
Plan(1956-60)
Objectives:
To secure an increase in national income by about 25 percent over five
years.
To initiate rapid industrialization with special emphasis on basic and heavy
industries. To generate more employment opportunities
To reduce the growing inequalities in the distribution of income and wealth.
To increase the rate of investment from 7 percent of National income to 11
percent of National income by 1960-61.
Third Five Year Plan(1961-
65)
Objectives:
 To secure a growth in National Income of over 5 percent per annum
To achieve self sufficiency in food grains and to increase
 agricultural production to meet the requirements for industrial
development and export promotion
To expand basic industries like steel, chemicals, fuel, and power and
 machine building capacity so that future industrial requirements can
be satisfied domestically.
To utilize manpower efficiently by generating more employment
 opportunities.

Indicator 1961 1962 1963 1964 1965

GDP growth (annual %) 3.87 3.13 6.28 7.44 21.51
GDP per capita (current 84.18 59.40 58.30 65.36 74.52
US$)
 Plan Holiday : 1966-69
1966 and 1968 : Famine
yearsdisrupted the planning process
Economic difficulties in
the mid 1960s.
 India faced two wars one with china in 1962 and then with Pakistan in
1965.
 There was negative impact on industrial and agriculture growth.
 Three annual plans guided development between FY 1966 and FY 1968
while plan policies and strategies were re-evaluated.

Indicator 1966 1967 1968 1969

GDP growth (annual %) -0.04 7.83 3.37 6.54
GDP per capita (current 120.73 90.81 96.95 100.30
US$)
Fourth Five Year Plan(1969-
73)
Objectives:
To attain a 5.5 percent growth in national income per annum
To bring about economic stability
To achieve self reliance
To achieve social justice and equality
To utilize Panchayati Raj institutions in local and regional planning.
To recognize the management of public enterprises.

Indicator 1969 1970 1971 1972 1973

GDP growth (annual %) 6.54 5.15 1.63 -0.55 3.32
GDP per capita (current 100.30 107.89 111.76 118.28 124.11
US$)
Fifth Five Year Plan(1974-
78)
Objectives:
To remove poverty and achieve self reliance
To achieve an adequate expansion of employment opportunities
particularly in rural areas.
To achieve development without stimulating further inflationary
pressures by introducing fiscal and monetary measures.

Indicator 1974 1975 1976 1977 1978

GDP growth (annual %) 1.18 9.15 1.66 7.26 5.71
GDP per capita (current 145.42 164.70 158.12 161.06 186.45
US$)
 Sixth Five Year
Plan(1980-84)
Objectives:
To remove widespread poverty particularly in rural areas to have an
appreciable step up in the rate of growth of the economy.
To strengthen the impulses of modernization for economic and
technological self reliance to provide basic needs of the people (drinking
water, elementary education, health, etc).
To reduce inequalities of income and wealth through redistribution in
ur of the poor.
favo

Indicator 1980 1981 1982 1983 1984

GDP growth (annual %) 6.74 6.00 3.47 7.30 3.82
GDP per capita (current 224.48 267.41 270.99 275.13 293.12
US$)
 Seventh Five Year
Plan(1985-89)
Objectives:
 To achieve growth, equity, social justice, self reliance and
improved efficiency and productivity
 To accelerate production of food grains To increase
 employment opportunities
 To lessen agricultural constraints on industrial development
 To initiate rapid expansion of scientific and technological
capabilities.

Indicator 1985 1986 1987 1988 1989

GDP growth (annual %) 5.23 4.77 3.96 9.64 5.95
GDP per capita (current 279.68 300.52 315.09 345.57 359.43
US$)
Eight Five Year Plan(1992-
96)
Objective:

 Managing the change and transition from a centrally

planned economy to a market led economy, without fearing
our socio-cultural fabric.

Indicator 1992 1993 1994 1995 1996

GDP growth (annual %) 5.48 4.77 6.65 7.57 7.56
GDP per capita (current 308.73 278.15 306.94 353.29 382.22
US$)
 Ninth Five Year Plan(1997-
2001)
Prepared under the United Front Govt. was released in Mar’98. The
same was modified and approved by the NDC in Feb’99, (2 yrs
after its implementation from Apr’97).

Objectives:
 The Ninth Plan was developed in the context of four important
dimensions of state policy, viz. Quality of life, generation of
productive employment, regional balance and self-reliance.
 The Ninth Plan focused on accelerated growth, recognizing a special
role for agriculture for its stronger poverty reducing and employment
generating effects, which will be carried out over a 15 year period.
The focus of the Ninth Plan was on: "Growth with Social Justice and
 Equality'
GDP gr
Indicator 1997 1998 1999 2000 2001
GDP per capita (current US$) 409.32 425.63 423.80 450.92 452.97
owth (annual 4.05 6.19 7.39 4.03 5.22
%)
Tenth Five Year Plan (2002-
06)
 Prepared with High Expectations:
 GDP growth in the post-reforms period improved to an average of
about 6.1 per cent in the Eighth and Ninth Plans from an average of
about 5.7 percent in the 1980s, making India one of the ten
fastest growing developing countries.
 The percentage of population in poverty continued to decline, even if
not as much as was targeted.
 Population growth decelerated below 2 per cent for the first time in
four decades.
 Literacy increased from 52 per cent in 1991 to 65 per cent in 2001 and
the improvement was evident in all States.

Objectives:
 To strengthen sectors such as software services and IT enabled services which were
emerging and creating confidence about India's potential.
Indicator 2002 2003 2004 2005 2006
GDP growth (annual %) 3.77 8.37 8.28 9.30 9.44
GDP per capita (current 462.82 483.66 563.19 667.68 764.85
US$)
Objectiv
e
 “Faster and More Inclusive Growth.”
 Growth rate of approximately 10% by the end of plan period.
 Growth of 4% in agriculture sector, faster employment creation.
 Reducing disparities across regions and ensuring access to basic
physical infrastructure and health and education services to all.

Indicator 2007 2008 2009 2010

GDP growth (annual %) 9.63 5.12 7.66 8.37
GDP per capita (current 855.27 1096.04 1065.13 1134.01
US$)