economic planning of india

8/9/2019 Economic Planning of India

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Economic planning of India


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Why are the five year plansmade?

Increase in National Income Full Employment

Reduction in Inequalities of Income and Wealth Social Justice

Other Objectives


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Five Year's Plan in a

nutshell


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1st ( - )five year plan 1951 56 It was presented by Jawaharlal Nehru in 1951, at the end of partition of the

country.

It gave importance to agriculture, irrigation.

Resolve the food crisis and ease the raw material problem especially in jute andcotton.

Rehabilitation of refugees, rapid agricultural growth and control of inflation.

Maximum output from agriculture= more industrial growth

Agriculture production increased .

National income went up by 18%, per capita income by 11% and per capitaconsumption by 9%.


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( - )2nd five year plan 1956 61 Started in prosperity.

Programs for agriculture and covering foodneeds were formulated.

Target 25% increase in national income.

Rapid industrialization with emphasis on thedevelopment of basic and heavy industries.

Target could not be achieved due to shortageof foreign exchange and rising prices.


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( - )3rd five year plan 1961 66

Realizing that the agriculture was a destabilizing

factor in the economy so agriculture was givendue importance.

The plan aimed to increase national income by30% and agriculture production by 30%.

Establishment of a self reliant and self generatingeconomy both in agriculture and industry.


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4th ( - )five year plan 1969 74

GDP growth and capital accumulation alone didnthelped.

Importance was given to provide employment andeducation.

Resources to agriculture were increased to 23.3% andfamily planning was given due weightage

Achievements were below targets.

Agriculture growth was just at 2.8% and Industry toogrew at 3.9%.

First 2 years were a success, but failed the rest due to

monsoon failure, power shortage, and inflation.


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5th five year plan( - )1974 79

Removal of poverty, checking inflation due toinflationary pressure during the fourth plan.

Nutritional requirement, health, and familyplanning were made important.

Target was to achieve 5.5%increase innational income.

The fifth plan was discontinued by the newJanata government in the fourth year itself.


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6thfive year plan( - )1980 85

Aim to provide employment opportunities tothe marginalized section of the society

Achieve more production targets andincreased employment.

Focus on agriculture and infrastructure.

The plan achieved a growth of 6% p.a.


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Starting three years saw severe drought conditions,despite which the food grain production rose by3.2%

Special programs like Jawahar Rozgar Yojana wereintroduced.

Sectors like welfare, education, health, familyplanning, employment etc got more emphasis.

More focus on increasing production by increasingemployment.


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It faced the devaluation of rupees.

Target was to increase growth rate to 5.6% in GDP.

More emphasis on infrastructure.

Employment, health, drinking water were allottedmore resources.

Decrease in the poverty level was another area offocus.


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Gains didnt percolated to the weaker sectionsof the society.

Plans were made to increase rural incomes.

Improve the living standards of labors andfarmers.

Aimed at quality of life, generation ofproductive employment, and self reliance.


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10th ( - )five year plan 2002 2007 Moved from Rs. 4.67 cr. to Rs.6413 cr.

Planning commission financed Rs.2430 cr. Against arequest of Rs.4545 cr.

Target was a growth rate of 8%, and implementing all thepolicies formulated in the past.

The Tenth Five Year Plan proposes schooling to becompulsory for children, by the year 2003.

All main rivers should be cleaned up between 2007 and2012

Reducing the poverty ratio by at least five percentagepoints, by 2007

Making provision for useful and lucrative employments tothe population, which are of the best qualities


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.Contd By 2007, there should be a decrease in gender

discriminations in the spheres of wage rate and

literacy, by a minimum of 50%

Taking up of extensive afforestation measures, byplanting more trees and enhance the forest and

tree areas to 25% by 2007 and 33% by 2012

Ensuring persistent availability of pure drinking waterin the rural areas of India, even in the remote parts

According to the Plan, it is mandatory that all infantscomplete at least five years in schools by 2007.


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CONTD

The rate of literacy must beincreased by at least 75%.

The alarming rate at which

the Indian population isgrowing must be checkedand fixed to 16.2%,between a time frame of2001 and 2011

Renovating the nation, sothat India moves at pace

with other fast growingeconomies.


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-Achievements during Tenth Five Year Plan

Fiscal Management- The average growth rate in own tax revenue is likely to be more

than 14%.

Average increase in salary expenditure has been less than 7%,whereas during Ninth plan period it was around 13%

The average increase in interest payment is around 6% whereas

during Ninth Plan period it was 18%.

Agriculture- "Krishi Yojna - Aapke Dwar" launched in all Panchayat Samities in

2005-06 for a transparent delivery of extension services.

For efficient use of water "Amulya Neer Yojna" launched to

popularize water saving devices.

Industry- (SEZs) are being developed with a view to provide infrastructure

and hassle free environment.

Rural Development and Self-Employment Training Institute

(RUDSETI) are being established at 5 places in the state.


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..Contd Roads-

Rural connectivity rose from 45% in 2002 to 65% in

2006. Mukhya Mantri Sarak Yojana launched on 7th

October, 2005 for improvement and up gradationof State Highway.

Education- Access of one primary school within the radius of

one km and upper primary school within 3 km.

Free text books to all girls and boys of class 1 to 12

studying in Government and aided schools exceptboys of general category whose parents areincome tax payers.

Hot cooked mid day meals for all children in primaryschools.

Free bus passes to girls, studying in rural areas.


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11th ( - )five year plan 2007 2012

Vision for the Eleventh Plan-

To maximize the use of vast untapped potential andnatural endowments of the State, thereby ensuringfood and nutritional security and better farm incomes,through environmentally sustainable agronomicpractices.

Public investments to be made for industrial growth.

Increase crop productivity.

Maintain soil health.

laboratories would have to be refurbished


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Six Plan schemes during the XI Plan

i. National Laboratories

i.ii. National S&T Human Resource Development

iii. Intellectual Property & Technology Management,

iv. R&D Management Support

v. New Millennium Indian Technology Leadership

Initiative and

vi. Setting up of a Translational Research Institute


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The Eleventh Plan will focus on

Improving animal feed

Promoting clean milkproduction

Expanding the cooperativesnetwork to cover morefarmers

Conducting milk productionand demand surveys

Creating adequate plant

capacity

A Plan outlay of Rs. 17580

Crore has been envisaged forthe six plan schemes during


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Objectives of the 11thplan Income & Poverty-(a)Accelerate GDP growth from 8% to 10% and then

maintain at 10% in the 12th Plan.(b)Create 70 million new work opportunities.

(c)Reduce educated unemployment to below 5%.

Education (a)Increase literacy rate for persons of age 7 years or

above to 85%

(b)Lower gender gap in literacy to 10 percentage point

Health (a)Provide clean drinking water for all by 2009

(b)Reduce anemia among women and girls by 50% by theend of the plan


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Women and Children

(a)Ensure that at least 33 percent of the direct and indirectbeneficiaries of all government schemes are women and girl

children(b)Ensure that all children enjoy a safe childhood, without any

compulsion to work

Infrastructure-

(a)Ensure electricity connection to all villages(b)Connect every village by telephone by November 2007 and

provide broadband connectivity to all villages by 2012

Environment

(a)Attain WHO standards of air quality in all major cities by2011-12.

(b)Treat all urban waste water by 2011-12 to clean riverwaters.


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distribution of allocations underdifferent schemes


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& -Achievements Initiatives during Tenth Five Year Plan Industry-

(a)Raising the rate of growth of the manufacturing sector to 12% p.a.

(b)Special emphasis for preservation and sustenance of traditional art

forms and the artisans.(b)Create investor friendly climate and conducive environment by reducing

the cost of doing business.

Roads-

(a)The National Highway and State Highway together account for only14.5% of network but carry 85% of traffic. 92% of the roads are singlelane, 3% intermediate lane and 5% double lane.

(b)There are 39753 inhabited villages in the State (2001 census). Out ofthese, 24010 villages were connected by roads at the end of March,2006.

Education-

(a)Education is the most critical element in empowering people with skillsand knowledge and giving them access to productive employment infuture and hence needs special attention.


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economic planning of india

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