1. Planning Process in India and the 11th 5 year plan

2. Some Important Facts about Economic Planning In India
Planning Commission was established in 1950
National Development Council

3. Objectives of Planning in India
The planning commission take the task to make an assessment of the material and the capital resources and the most effective utilisation of these resources on a priority basis.
The fundamental objectives are
To accelerate the pace of economic growth
To provide social justice to the general masses

4. Objectives of Planning in India
Attain higher rate of economic growth
Reduction of economic inequality
Achieving full employment
Attaining economic self reliance
Modernisation of various sectors
Redressing imbalances in the economy

5. Planning Phases 1951 to 1955 Preparatory Phase for Development
1056 to mid 1960s Rapid Industrialization
1960s to 1970s Focus on Agriculture Development
1980s Initiating Liberalisation
1991 onwards Liberalisation

6. Economic Backdrop for 11th Plan
STRENGTHS
The economy is in a state of take-off and large investments are underway as the macro economic fundamentals are sound. Indian economy is getting integrated with the global economy.
The Indian economy is in a much stronger position now than it was a few years ago. The growth performance of the Tenth Plan averaged at 7.2%.
Domestic savings rate have been rising and have reached 29.1 percent in
Fiscal deficit is reducing.
Foreign exchange reserves are at the comfortable level.

7. Economic Backdrop for 11th Plan
WEAKNESSES
Agriculture has lost growth momentum
Low growth of organised sector jobs despite high economic growth
Slow growth of decline in the poverty rate
Malnutrition continue to be a major concern
Many people lack access to basic services, such as health, education, clean drinking water and sanitation facilities
Continuing discrimination against women

8. Vision for the 11th Plan “Towards Faster and More Inclusive Growth”
Aims to put the economy on a sustainable growth trajectory with a growth rate 10% by the end of the plan period. – Strategy of Rapid Economic Growth
To provide an opportunity to restructure policies, to achieve a new vision based on faster, more broad based, and inclusive growth. – Strategy of Inclusive Growth

9. Strategy of Rapid Economic Growth
1. To ensure sufficient rise in the income of the mass of our population to bring about general improvement in living conditions.
2. To generate the resources needed to provide basic services to all.

10. Strategy of Inclusive Growth
THE LOGIC
Providing basic facilities to the masses has a direct impact on the welfare of people in short run.
In the long run, improved welfare will determine the improved economic opportunities for the future .
Better health and education are the necessary pre-conditions for sustained long term growth.

11. Strategy of Inclusive Growth
Government interventions at different levels are required to ensure the provisions of essential services.
Policies to ensure that the entrepreneurship cab flourish at all levels, not just at the top. i.e. More emphasis on MSME gowth

12. Strategy to Promote Private Sector
To remove policy induced constraints and excessive transaction costs.
Improve competitive environment
Encourage new entrants to enter the market
Remaining quantitative controls o be replaced by the fiscal measures.
Continued commitment to the development an social roles of banking in order to ensure that the benefits are widespread

13. Socio-Economic Targets of the 11th Plan

14. Income and Poverty
Accelerate GDP growth from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by
Increase agricultural GDP growth rate to 4% per year to ensure a broader spread of benefits
Create 70 million new work opportunities.
Reduce educated unemployment to below 5%.
Raise real wage rate of unskilled workers by 20 percent.
Reduce the headcount ratio of consumption poverty by 10 percentage points.

15. Education
Reduce dropout rates of children from elementary school from 52.2% in to 20% by
Develop minimum standards of educational attainment in elementary school, and by regular testing monitor effectiveness of education to ensure quality
Increase literacy rate for persons of age 7 years or above to 85%
Lower gender gap in literacy to 10 percentage point
Increase the percentage of each cohort going to higher education from the present 10% to 15% by the end of the plan

16. Health
Reduce infant mortality rate to 28 and maternal mortality ratioto 1 per 1000 live births
Reduce Total fertility rate to 2.1
Provide clean drinking water for all by 2009 and ensure that there are no slip-backs
Reduce malnutrition among children of age group 0-3 to half its present level
Reduce anaemia among women and girls by 50% by the end of the plan

17. Women and Children
Raise the sex ratio for age group 0-6 to 935 by and to 950 by
Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are women and girl children
Ensure that all children enjoy a safe childhood, without any compulsion to work

18. Infrastructure
Ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power.
Ensure all-weather road connection to all habitation with population 1000 and above (500 in hilly and tribal areas) by 2009, and ensure coverage of all significant habitation by 2015
Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012
Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by

19. Environment Increase forest and tree cover by 5 percentage points.
Attain WHO standards of air quality in all major cities by
Treat all urban waste water by to clean river waters.
Increase energy efficiency by 20 percentage points by

20. Policies for Faster and More Inclusive Growth: Areas Identified by the Approach Paper

21. Investment Requirements
To increase the domestic investment rate from 27.8 per cent in the 10th plan to 37 per cent in the 11th plan and 39 percent at the end of the plan in order to achieve and average growth rate of 9 per cent
Private investment in agriculture, small and medium enterprises and in the corporate sector is expected to b about 78 %
22% will come from public investment focused on critical infrastructure sector
Steps to be taken to improve the investment climate –mainly the responsibility of state govt.
Ensure financial inclusion of MSMEs by supporting innovations in the finance systems
Micro finance, venture capital funds, private equity funds

22. Public Investment
Investment through budgetary resources as well as public sector investments
Finance from budgetary provisions should be more revenue expenditure (FRBM). Therefore increase in the tax revenue as a proportion of GDP and fall in non-planned expenditure

23. Other Policies Policies towards agriculture
Doubling the agricultural growth to 4 percent is essential for inclusive growth.
Promoting Access to Health and Education
Developing Infrastructure
Rural Infrastructure
Special Focus on Weaker Sections.