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FIVE YEAR PLANS. FIVE YEAR PLANS OVERVIEW Strategy of a planned approach to economic development. Planning commission is responsible for the formulation.

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Presentation on theme: "FIVE YEAR PLANS. FIVE YEAR PLANS OVERVIEW Strategy of a planned approach to economic development. Planning commission is responsible for the formulation."— Presentation transcript:

1 FIVE YEAR PLANS

2 FIVE YEAR PLANS OVERVIEW Strategy of a planned approach to economic development. Planning commission is responsible for the formulation of five year plans Objective: growth, employment, self-reliance and social justice Continual watch on trends and adjustments Systematic observation of technical, economic and social data

3 Planning Commission Functions: To estimate the physical, capital and human resources To prepare plans for making effective & balanced utilization of HR To determine various stages of planning & to propose the allocation of resources on the priority basis To evaluate the economic progress and to suggest remedial measures

4 Assessment First Five Year Plan ( ) Proposed Plan Outlay: Rs.2069 Crores. Situation: Influx of refugees, food shortage, disequilibrium in the economy and mounting inflation Objectives To reconstruct the damaged economy after World War and partition To check the inflationary trends To solve food crisis and to improve the availability of raw materials, especially Jute and Cotton To rehabilitate refugees

5 First Five Year Plan Cond.. To increase the production capacity and to lessen the economic disparities Plan was a success as the plan objectives and targets were filled Achieved growth was more than the target Total allocation – Rs.2069 Crores Actual expenditure – Rs.1960 Crores NDP increased by 15% and per capita income by 8%

6 Second Five Year Plan Period: Proposed plan outlay: Rs.7900 Crores Situation: Low industrial output Objectives: Rapid industrialisation and development of heavy and basic industries Plan could not be implemented fully because of acute shortage of foreign exchange.

7 Third Five Year Plan Period: Proposed Plan Outlay: Rs Crores Situation: Rate of growth of agriculture was the main limiting factor in Indias economic development Objective: Top priority to agriculture with equal emphasis on development of basic industries Objective changed to defence development because of indo-china and indo-pak wars.

8 Fourth Five Year Plan Original draft outline of the plan was abandoned because of pressure on economy by two years of drought, devaluation of the rupee and the inflationary pressure Three annual plans also called Plan Holiday were implemented for the years

9 Fourth Five Year Plan Period: Proposed Plan Outlay: Rs Crores Situation: large scale poverty and unemployment Objective: Growth with stability and progressive achievement of self-reliance Aimed at 5.5% growth and provision of national minimum for weaker sections of the community- Garibi Hatao

10 Fifth Five Year Plan Period: Proposed Plan Outlay: Rs Crores Situation: high inflation, hike in oil prices and failure of Government take-over of the wholesale trade in wheat. Objective: Removal of poverty and attainment of self-reliance Terminated by Janata party in 1978

11 Sixth Five year Plan Two sixth plans. One by the Janata Party during the period Focus on enlargement of employment potential in agriculture and allied activities and encouragement to small industry The plan was rejected when Congress party came into power. The objective changed to removal of poverty by expanding economy.

12 Sixth Five Year Plan Period: Proposed Plan Outlay: Rs Crores High levels of poverty and inflation Impact: Indian economy made good progress and most of the targets fixed were realised. Aimed at a growth rate of 5.2 and achieved a growth rate of 5.7

13 Seventh Five Year Plan Period: Proposed Plan Outlay: Rs Crores Situation: Reasonable growth rate of economy Objectives: Accelerate food grains production, increase employment opportunities and raise productivity Achieved a growth rate of 6%

14 Eighth Five Year Plan Period: Proposed Plan Outlay: Rs Crores Situation: balance of payment crisis, rising debt, budget deficits, mounting inflation and recession in industry Objective: Economic reforms, accelerate growth and improve quality of life in common man Achieved an impressive growth rate of 6.8%

15 SECTORAL OUTLAYS DURING THE PL ANS (IN CRORES) PLANAGRICULTURE AND I RRIGATION POWERINDUSTRYTRANSPORT AND COMMUNICATIONSOCIAL SERVICESTOTAL FIRST PLAN600 (31)260 (13)120 (6)520 (27)460 (22)1960 SECOND PLAN950 (20)440 (10)1080(24)1300 (28)830 (18)4600 THIRD PLAN1750 (21)1250 (15)1970 (23)2120 (25)1490 (17)8580 FOURTH PLAN3810 (24)2450 (15)3630 (23)3240 (20)2770 (18)15900 FIFTH PLAN ( ) ACTUALS 8740 (22)7400 (19)9580 (26)6870 (18)6840 (17)39430 SIXTH PLAN26130 (24)30750 (28)16950 (16)17680 (16)17780 (16) SEVENTH PLAN48100 (22)61690 (28)29220 (13)41000 (19)38720 (18) EIGHTH PLAN (21) (27)47890 (10) (21) (22)485460

16 PATTERN OF FINANCING THE FIVE YE AR PLANS IN INDIA RESOURCES FOR THE PUBLIC SECTOR DOMESTIC BUDGETARY SOURCES FOREIGN ASSISTANCE DEFICIT FINANCING RESOURCES FOR THE PRIVATE SECTOR SAVINGS OF INDIVIDUALS & COMPANY PUBLIC SECTOR FINANCIAL INSTITUIONS FUND RAISING THROUGH SHARES AND DEBENTURES FOREIGN FUNDS-EQUITY CAPITAL, FOREIGN COLLABORATION

17 ACHIEVEMENTS OF FIVE YEAR PL ANS INCREASE IN NATIONAL AND PER CAPITA INCOME PROGRESS IN AGRICULTURE PROGRESS IN INDUSTRY DEVELOPMENT OF ECONOMIC INFRASTRUCTURE DIVERSIFICATION OF EXPORTS AND IMPORT SUBSTITUTION DEVELOPMENT OF SCIENCE AND TECHNOLOGY DEVELOPMENT OF HUGE EDUCATIONAL SYSTEM

18 FAILURES OF FIVE YEAR PLANS FAILURE TO ELIMINATE POVERTY FAILURE TO PROVIDE EMPLOYMENT TO ALL ABLE BODIED PERSONS FAILURE TO REDUCE INEQUALITIES OF INCOME AND WEALTH FAILURE TO CHECK GROWTH OF BLACK MONEY FAILURE TO REDUCE CONCENTRATION OF ECONOMIC POWER FAILURE TO IMPLEMENT LAND REFORMS

19 CONCLUSION THE PHILOSOPHICAL FOUNDATIONS OF THE PLANNING POLICIES AND STRATEGY WERE SOUND BUT THERE WAS CRISIS OF IMPLEMENTATION DUE TO THE EXISTENCE OF A GAP BETWEEN THEORY AND PRACTICE OF SOCIALIST PLANNING


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