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    Exam Questions

    2 marks:

    1) Which sector accorded too priority in the

    Eleventh Plan? (2008)

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    A Plan is a deliberate attempt to spell out how theresources of a country should be put to use. It has some general and specific goals, which are to beachieved within a specific period of time.

    The general goals of a Plan are growth, modernization,full employment, self-reliance and equity. But all Plans maynot give equal importance to all of them.Each Plan can have some specific goals like improvementof agriculture. For example our first five-year plan wasgeared to improving the state of agriculture and the secondto improving Industry

    WHAT DO YOU MEAN BY PLAN? (2 marks)

    Introduction: PLAN

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    The Planning Commission was set up in March, 1950 bya Resolution of the Government of India.The economy of India is based on planning through its

    five-year plans, developed, executed and monitored bythe Planning Commission . With the Prime Minister as the ex officiaChairman, thecommission has a nominated Deputy Chairman, who hasrank of a Cabinet minister. Montek Singh Ahluvaliya iscurrently the Deputy Chairman of the Commission.The eleventh plan completed its term in March 2012 andthe twelfth plan is currently underwayWHO IS THE CURRENT DEPUTY CHAIRMAN OF THE

    PLANNING COMMISSION OF INDIA? (2 marks)

    Planning commission of india

    http://images.google.co.in/imgres?imgurl=http://www.agricultureinformation.com/mag/wp-content/uploads/2009/01/manmohan-singh.jpg&imgrefurl=http://www.agricultureinformation.com/mag/%3Fp%3D977&usg=__wjsbQp2fXjYR1A0dJJKzjxSTLC4=&h=350&w=350&sz=22&hl=en&start=13&um=1&tbnid=ntKgCsx6Z2OUwM:&tbnh=120&tbnw=120&prev=/images%3Fq%3Dmanmohan%2Bsingh%26hl%3Den%26um%3D1http://images.google.co.in/imgres?imgurl=http://im.in.com/connect/images/profile/b_profile3/Montek_Singh_Ahluwalia_300.jpg&imgrefurl=http://connect.in.com/montek-singh-ahluwalia/profile-201781.html&usg=__KZFIGoOWSxO-8Zvh5cAGbKV4QW4=&h=360&w=300&sz=20&hl=en&start=3&tbnid=nXnl-QjpAcJwqM:&tbnh=121&tbnw=101&prev=/images%3Fq%3Dmontek%2Bsingh%2Bahluwalia%26gbv%3D2%26hl%3Denhttp://images.google.co.in/imgres?imgurl=http://www.tribuneindia.com/2003/20030126/spectrum/gallery/images/jawaharlal%2520nehru.jpg&imgrefurl=http://www.tribuneindia.com/2003/20030126/spectrum/gallery/pages/jawaharlal%2520nehru.htm&usg=__EBylfmLUS1QjRlg37KVbcqsnc0Y=&h=353&w=300&sz=28&hl=en&start=3&um=1&tbnid=qoWkQnkMKQ5fxM:&tbnh=121&tbnw=103&prev=/images%3Fq%3Djawaharlal%2Bnehru%26hl%3Den%26um%3D1
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    The first Indian Prime Minister, Jawaharlal Nehru presented the

    first five-year plan to the Parliament of India on December 8,1951.

    1. The first plan sought to get the country's economy out of thecycle of poverty.

    2. The plan addressed, mainly, the agrarian sector, includinginvestments in dams and irrigation. Agricultural sector washit hardest by partition and needed urgent attention.

    3. The total plan budget of 206.8 billion INR (23.6 billion USD inthe 1950 exchange rate) was allocated to seven broadareas: irrigation and energy (27.2 percent), agriculture andcommunity development (17.4 percent), transport andcommunications (24 percent), industry (8.4 percent), socialservices (16.64 percent), land rehabilitation (4.1 percent),

    and other (2.5 percent).

    First plan (1951-1956)

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    4. The target growth rate was 2.1 percent annual grossdomestic product (GDP) growth; the achieved growth

    rate was 3.6 percent.5. During the first five-year plan the net domestic productwent up by 15 percent.

    6. The monsoon was good and there were relatively highcrop yields, boosting exchange reserves and the per

    capita income, which increased by 8 percent.7. National income increased more than the per capita

    income due to rapid population growth.8. Many irrigation projects were initiated during this

    period, including the Bhakra Dam and Hirakud Dam.9. The World Health Organization, with the Indian

    government, addressed children's health and reducedinfant mortality, indirectly contributing to populationgrowth.

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    10.At the end of the plan period in 1956, five Indian

    Institutes of Technology (IITs) were started as majortechnical institutions.

    11.University Grant Commission was set up to take care offunding and take measures to strengthen the higher

    education in the country.12.Contracts were signed to start five steel plants; howeverthese plants did not come into existence until the middleof the next five-year plan

    http://images.google.co.in/imgres?imgurl=http://nikhilraut.com/images/bhakra01.jpg&imgrefurl=http://nikhilraut.com/dams.aspx&usg=__D5CDIOm4Sp7oRYEgKcP4ibe8yrU=&h=322&w=365&sz=41&hl=en&start=2&um=1&tbnid=SObfxwHWnnQJgM:&tbnh=107&tbnw=121&prev=/images%3Fq%3Dbhakra%2Bdam%26hl%3Den%26um%3D1
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    1. The second five-year plan focused on industry,especially heavy industry.

    2. Domestic production of industrial products wasencouraged, particularly in the development of thepublic sector.

    3. The plan followed the Mahalanobis model, aneconomic development model developed by theIndian statistician Prasanta Chandra Mahalanobis in1953.

    4. It used the existing art techniques of operation andresearch as well as the novel applications of

    statistical models developed at the Indian StatiaticalInstitute.

    5. The plan assumed a closed economy in which themain trading activity would be centered on importing

    capital goods.

    Second plan (1956-1961)

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    6. Hydroelectric power projects and five steel mills atBhilai, Durgapur, and Rourkela were established.

    7. Coal production was increased.8. More railway lines were added in the north east.9. The Atomic Energy Commission was formed in 1957

    with Homi J. Bhabha as the first chairman.10.The Tata Institute of Fundamental Research was

    established as a research institute.11.In 1957 a talent search and scholarship program was

    begun to find talented young students to train for workin nuclear power.

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    1. The third plan stressed on agriculture and improvingproduction of rice.2. The Sino-Indian war led to inflation and the priority was

    shifted to price stabilization.3. The construction of dams continued.4. Many cement and fertilizer plants were also built.5. Punjab began producing an abundance of wheat.6. Many primary schools were started in rural areas.7. Panchayat elections were started and the states were

    given more development responsibilities.8. State electricity boards and state secondary education

    boards were formed.9. State road transportation corporations were formed and

    local road building became a state responsibility

    Third plan (1961-1966)

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    1. The Indira Gandhi government nationalized 14 major Indianbanks and the Green Revolution in India advancedagriculture.

    2. In addition, the situation in East Pakistan (now independentBangladesh) was becoming dire as the Indo-Pakistani Warof 1971 and Bangladesh Liberation War took place. Fundsearmarked for the industrial development had to be used forthe war effort.

    3. India also performed the Smiling Buddha undergroundnuclear test in 1974, partially in response to the UnitedStates deployment of the Seventh Fleet in the Bay of Bengalto warn India against attacking West Pakistan and widening

    the war.

    Fourth plan (1969-1974)

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    1. Stress was laid on employment, poverty alleviation, andjustice.

    2. The plan also focused on self-reliance in agriculturalproduction and defense.

    3. Electricity Supply Act was enacted in 1975, which enabledthe Central Government to enter into power generationand transmission

    4. In 1978 the newly elected Morarji Desai governmentrejected the plan

    Fifth plan (1974-1979)

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    1. When Rajiv Gandhi was elected as the prime minister, the

    young prime minister aimed for rapid industrialdevelopment, especially in the area of informationtechnology.

    2. The Indian national highway system was introduced forthe first time and many roads were widened toaccommodate the increasing traffic.

    3. Tourism also expanded.4. The sixth plan also marked the beginning of economic

    liberalization. Price controls were eliminated and ration

    shops were closed. This led to an increase in food pricesand an increased cost of living.

    5. Family planning also was expanded in order to preventoverpopulation. More prosperous areas of India adopted

    family planning more rapidly than less prosperous areas,which continued to have a high birth rate.

    Sixth plan (1980-1985)

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    1. The Seventh Plan marked the comeback of theCongress Party to power.

    2. The plan lay stress on improving the productivity level ofindustries by upgradation of technology.

    3. The thrust areas of the 7th Five year plan have been

    enlisted below: Social Justice Removal of oppression of the weak Using modern technology

    Agricultural development Anti-poverty programs Full supply of food, clothing, and shelter Increasing productivity of small and large scale

    farmers Making India an Independent Economy

    Seventh plan (1985-1989)

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    4. Based on a 15-year period of striving towards steady growth,the 7th Plan was focused on achieving the pre-requisites of

    self-sustaining growth by the year 2000.5. The Plan expected a growth in labor force of 39 million

    people and employment was expected to grow at the rate of4 percent per year.

    6. Some of the expected outcomes of the Seventh Five YearPlan India are given below: Balance of Payments (estimates): Export - Rs. 33

    thousand crore, Imports - (-)Rs.54 thousand crore, TradeBalance - (-)Rs.21 thousand crore

    Merchandise exports (estimates): Rs. 60,653 crore Merchandise imports (estimates): Rs. 95,437 crore Projections for Balance of Payments: Export - Rs.60.7

    thousand crore, Imports - (-) 95.4 thousand crore, Trade

    Balance- (-) Rs.34.7 thousand crore

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    1. 1989-91 was a period of political instability in India andhence no five year plan was implemented.

    2. In 1991, India faced a crisis in Foreign Exchange (Forex)reserves, left with reserves of only about $1 billion (US).Thus, under pressure, the country took the risk of reformingthe socialist economy.

    3. P.V. Narasimha Rao (28 June 1921 23 December 2004),

    also called Father of Indian Economic Reforms, was thetwelfth Prime Minister of the Republic of India and head ofCongress Party, and led one of the most importantadministrations in India's modern history overseeing a major

    economic transformation and several incidents affectingnational security.4. At that time Dr. Manmohan Singh launched India's free

    market reforms that brought the nearly bankrupt nation backfrom the edge. It was the beginning of privatization andliberalization in India.

    Period between 1989-91

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    1. Modernization of industries was a major highlight of the

    Eighth Plan.

    2. Under this plan, the gradual opening of the Indian economywas undertaken to correct the burgeoning deficit and foreigndebt.

    3. Meanwhile India became a member of the World TradeOrganization on 1 January 1995.This plan can be termed as

    Rao and Manmohan model of Economic development.4. The major objectives included, containing population growth,

    poverty reduction, employment generation, strengtheningthe infrastructure, Institutional building, Human Resource

    development, Involvement of Panchayat raj, Nagarapalikas,N.G.OSand Decentralisation and peoples participation.

    5. Energy was given prority with 26.6% of the outlay.6. An average annual growth rate of 6.7% against the target

    5.6% was achieved.

    Eighth plan (1992-1997)

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    1. Ninth Five Year Plan of India runs had the main aim of attainingobjectives like speedy industrialization, human development,full-scale employment, poverty reduction, and self-reliance ondomestic resources.

    2. Ninth Five Year Plan was formulated amidst the backdrop o

    India's Golden jubilee of Independence.3. The main objectives of the Ninth Five Year Plan India are:

    to prioritize agricultural sector and emphasize on the ruraldevelopment

    to generate adequate employment opportunities andpromote poverty reduction

    to stabilize the prices in order to accelerate the growth rateof the economy

    to ensure food and nutritional security

    Ninth Plan (1997 - 2002)

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    to provide for the basic infrastructural facilities like

    education for all, safe drinking water, primary health

    care, transport, energy to check the growing population increase to encourage social issues like women

    empowerment, conservation of certain benefits for the

    Special Groups of the society to create a liberal market for increase in private

    investments4. During the Ninth Plan period, the growth rate was

    5.35 per cent, a percentage point lower than thetarget GDP growth of 6.5 per cent

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    1. The main objectives of the 10th Five-Year Plan were:

    Reduction of poverty ratio by 5 percentage points by2007;

    Providing gainful and high-quality employment at

    least to the addition to the labour force; All children in India in school by 2003; all children to

    complete 5 years of schooling by 2007; Reduction in gender gaps in literacy and wage rates

    by at least 50% by 2007; Increase in Literacy Rates to 75 per cent within the

    Tenth Plan period (2002 to 2007); Reduction in the decadal rate of population growth

    between 2001 and 2011 to 16.2%;

    Tenth plan (2002-2007)

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    Reduction of Infant mortality rate (IMR) to 45per 1000 live births by 2007 and to 28 by2012;

    Reduction of Maternal Mortality Ratio (MMR)to 2 per 1000 live births by 2007 and to 1 by2012;

    Increase in forest and tree cover to 25 percent by 2007 and 33 per cent by 2012;

    All villages to have sustained access topotable drinking water within the Plan period;

    Cleaning of all major polluted rivers by 2007and other notified stretches by 2012;

    2. Economic Growth further accelerated during thisperiod and crosses over 8% by 2006.

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    The eleventh plan has the following objectives:1. Income & PovertyAccelerate GDP growth from 8% to 10% and then maintainat 10% in the 12th Plan in order to double per capita income

    by 2016-17Increase agricultural GDP growth rate to 4% per year toensure a broader spread of benefitsCreate 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 10percentage points.

    Eleventh plan (2007-2012)

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    2. EducationReduce dropout rates of children from elementary schoolfrom 52.2% in 2003-04 to 20% by 2011-12Develop minimum standards of educational attainment in

    elementary school, and by regular testing monitoreffectiveness of education to ensure qualityIncrease literacy rate for persons of age 7 years or aboveto 85%

    Lower gender gap in literacy to 10 percentage pointsIncrease the percentage of each cohort going to highereducation from the present 10% to 15% by the end of theplan

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    3. HealthReduce infant mortality rate to 28 and maternal mortalityratio to 1 per 1000 live births

    Reduce Total Fertility Rate to 2.1Provide clean drinking water for all by 2009 and ensurethat there are no slip-backsReduce malnutrition among children of age group 0-3 to

    half its present level Reduce anaemia among women and girls by 50% by theend of the plan

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    4. Women and ChildrenRaise the sex ratio for age group 0-6 to 935 by2011-12 and to 950 by 2016-17

    Ensure that at least 33 percent of the direct andindirect beneficiaries of all government schemes arewomen and girl childrenEnsure that all children enjoy a safe childhood,

    without any compulsion to work

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    5. InfrastructureEnsure electricity connection to all villages and BPLhouseholds by 2009 and round-the-clock power.

    Ensure all-weather road connection to all habitation withpopulation 1000 and above (500 in hilly and tribal areas) by2009, and ensure coverage of all significant habitation by2015

    Connect every village by telephone by November 2007and provide broadband connectivity to all villages by 2012 Provide homestead sites to all by 2012 and step up thepace of house construction for rural poor to cover all thepoor by 2016-17

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    6. EnvironmentIncrease forest and tree cover by 5 percentage points.

    Attain WHO standards of air quality in all major cities by2011-12.Treat all urban waste water by 2011-12 to clean riverwaters.

    Increase energy efficiency by 20 percentage points by2016-17.

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    Practice Questions

    2 marks:1) What is plan?

    2) Write the time period of ninth plan

    3) Write any 2 objectives of tenth plan20 marks:

    1) Write an essay on the eleventh plan

    2) Write a short description on all the five

    year plans in India