Summary of Five Year plans, Study notes of Economic policy

Download Summary of Five Year plans and more Study notes Economic policy in PDF only on Docsity! Summary: Five Year Plans in India Plan Notes First Plan (1951 - 56) It was based on Harrod-Domar Model. Community Development Program launched in 1952 Focus on agriculture, price stability, power and transport It was a successful plan primarily because of good harvests in the last two years of the plan Second Plan (1956 - 61) Target Growth: 4.5% Actual Growth: 4.27% Also called Mahalanobis Plan named after the well known economist Focus - rapid industrialization Advocated huge imports through foreign loans. Shifted basic emphasis from agriculture to industry far too soon. During this plan, prices increased by 30%, against a decline of 13% during the First Plan Third Plan (1961 - 66) |Target Growth: 5.6% Actual Growth: 2.84% At its conception, it was felt that Indian economy has entered a take-off stage. Therefore, its aim was to make India a 'self-reliant' and 'self-generating' economy. Based on the experience of first two plans, agriculture was given top priority to support the exports and industry. Complete failure in reaching the targets due to unforeseen events - Chinese aggression (1962), Indo-Pak war (1965), severe drought 1965-66 Three Annual Plans (1966-69) Plan holiday for 3years. Prevailing crisis in agriculture and serious food shortage necessitated the emphasis on agriculture during the Annual Plans During these plans a whole new agricultural strategy was implemented. It involving wide-spread distribution of high- yielding varieties of seeds, extensive use of fertilizers, exploitation of irrigation potential and soil conservation. During the Annual Plans, the economy absorbed the shocks generated during the Third Plan It paved the path for the planned growth ahead. Fourth Plan (1969 - 74) Target Growth: 5.7% Actual Growth: 3.30% Main emphasis was on growth rate of agriculture to enable other sectors to move forward First two years of the plan saw record production. The last three years did not measure up due to poor monsoon. Influx of Bangladeshi refugees before and after 1971 Indo-Pak war was an important issue Fifth Plan (1974-79) Target Growth: 4.4% Actual Growth: 3.8 The fifth plan was prepared and launched by D.D. Dhar. It proposed to achieve two main objectives: 'removal of poverty' (Garibi Hatao) and 'attainment of self reliance' Promotion of high rate of growth, better distribution of income and significant growth in the domestic rate of savings were seen as key instruments The plan was terminated in 1978 (instead of 1979) when Janta Party Govt. rose to power. Rolling Plan (1978 - 80) There were 2 Sixth Plans. Janta Govt. put forward a plan for 1978-1983. However, the government lasted for only 2 years. Congress Govt. returned to power in 1980 and launched a different plan. Sixth Plan (1980 - 85) Target Growth: 5.2% Actual Growth: 5.66% Focus - Increase in national income, modernization of technology, ensuring continuous decrease in poverty and unemployment, population control through family planning, etc. Seventh Plan (1985 - 90) Target Growth: 5.0% Actual Growth: 6.01% Focus - rapid growth in food-grains production, increased employment opportunities and productivity within the framework of basic tenants of planning. The plan was very successful, the economy recorded 6% growth rate against the targeted 5%. Eighth Plan (1992 - 97) The eighth plan was postponed by two years because of political uncertainty at the Centre Worsening Balance of Payment position and inflation during 1990-91 were the key issues during the launch of the plan. The plan undertook drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6% Some of the main economic outcomes during eighth plan period were rapid economic growth, high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit. Ninth Plan (1997- 2002) Target Growth: 6.5% Actual Growth: 5.35% It was developed in the context of four important dimensions: Quality of life, generation of productive employment, regional balance and self-reliance. Tenth Plan (2002 - 2007) Goals: To achieve 8% GDP growth rate Reduction of poverty ratio by 5 percentage points by 2007. Providing gainful high quality employment to the addition to the labour force over the tenth plan period. Universal access to primary education by 2007. Reduction in gender gaps in literacy and wage rates by atleast 50% by 2007. Reduction in decadal rate of population growth between 2001 and 2011 to 16.2%. Increase in literacy rate to 72% within the plan period and to 80% by 2012.