1. 1. in a Nutshell
2. 2. What is a Five Year Plan?
3. 3. Why to plan? Some problems which necessitates for an immediate plan are as follows: Poverty Low per capita income High rate of growth of population Low level of literacy Need for rapid industrialisation
4. 4. Objectives of Planning To increase per capita income and GDP Higher level of employment Growth with social justice Increasing industrial output Modernisation Self-reliance
5. 5. Stages in Planning Formulation Adoption Approval Execution Supervision
6. 6. Quick Glance First Five Year Plan started in 1951, by our first Prime Minister Pandit Jawaharlal Nehru The ongoing Five Year Plan is the Twelfth Five Year Plan
7. 7. First Five Year Plan (1951-1956) Led by Pandit Jawaharlal Nehru, on 8th December, 1951 Plan addressed mainly the agricultural sector, including investments in dams and irrigation The total planned budget was Rs. 2069 crores The NDP went up by 15% Many irrigation projects were initiated during this period
8. 8. Second Five Year Plan (1956-1961) Focussed on heavy industries and the Public Sector Attempted to determine the optimal allocation of investment between productive sectors in order to maximize long-run economic growth Total amount allocated was Rs. 4600 crores
9. 9. Third Five Year Plan (1961-1966) The Third plan stressed on agriculture and improvement in the production of wheat But the brief Sino-Indian war of 1962 exposed weaknesses in the economy and shifted the focus towards the defense industry Many cement and fertiliser plants were also built Punjab began producing an abundance of wheat Many primary schools started in rural areas
10. 10. A Sudden Hindrance (1966-1969) In 1965-1966, India fought a [Indo-Pak] war with Pakistan Due to this war, there was a severe drought in 1965, in the sense that there was a great instabilisation and the nation was facing difficulties The war led to inflation and the priority was shifted to price stabilisation The construction of dams continued
11. 11. Fourth Five Year Plan (1969-1974) Prime Minister Indira Gandhi Government nationalised 14 major Indian banks and the Green Revolution in India advanced agriculture Main emphasis was on growth rate of agriculture to enable other sectors to move forward First two year 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
12. 12. Fifth Five Year Plan (1974-1979) Launched by D.D. Dhar Two main objectives- Garibi Hatao Self-reliance Key instruments- Promotion of high rate of growth Better distribution of income Signigicant growth in the domestic rate of savings Rolling Plan (1978-1980)
13. 13. Sixth Five Year Plan (1980-1985) The main focus was an increase in:- National income Modernisation of technology Ensuring continuous decrease in poverty and unemployment Population control through family planning, etc.
14. 14. Seventh Five Year Plan (1985-1990) The focus was 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 targetted 5%
15. 15. Eighth Five Year Plan (1992-1997) Was postponed by two years Drastic policy measures led to an annual coverage growth of 5.6% Some of the main economic outcomes were rapid economic growth, high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and (then) current account deficit
16. 16. Ninth Five Year Plan (1997-2002) Developed in the context of four important dimensions.:- Quality of life Generation of productive employment Regional balance Self-reliance Other aims To ensure food and nutritional security To check the growing population increase To stabilise prices in order to accelerate the growth rate of economy To create a liberal market for increase in private investments, etc
17. 17. Tenth Five Year Plan (2002-2007) Developed to achieve the following:- Attain 8% GDP growth per year (achieved 7.7%) Reduction of Poverty Ratio by 5% by 2007 Providing gaingul and higher quality employment at least to the addition to the labour force Reduction in gender gaps in literacy and wage rates by at least 50% by 2007
18. 18. Eleventh Five Year Plan (2007-2012) Focussed on achieving the following aims:- Poverty Reduction Emphasis on Social Sector Reduction of gender inequality Environmental sustainabillity Increase growth rate in agriculture, industry and services Clean drinking water
19. 19. Statistics Plan Target Actual First Plan 2.9% 3.6% Second Plan 4.5% 4.3% Third Plan 5.6% 2.8% Fourth Plan 5.7% 3.3% Fifth Plan 4.4% 4.8% Sixth Plan 5.2% 6.0% Seventh Plan 5.0% 6.0% Eighth Plan 5.6% 6.8% Ninth Plan 6.5% 5.4% Tenth Plan 8.0% 7.8% Eleventh Plan 9.0% 8.0%
20. 20. Twelfth Five Year Plan (2012-2017) The Twelfth Five Year Plan, noticing the deterioting global situation, has set a target of average GDP increase of 8% The plan will try to achieve improvements in all the previous topics, along with a special care for elimination of poverty
21. 21. Factors for effectiveness of a Five Year Plan Collection of statistical data Economic organisation Government setup Public cooperation Conclusions
22. 22. Conclusions We learnt that:- Economic planning helps in mobilizing and allocating the resources in desired manner Objective of economic planning is to reduce inequality, economic growth, balanced regional growth, modernisation Each Five Year Plan aims at achieving certain targets. Give year plan constitute the steps toward the fulfillment of objectives of economic planning
23. 23. Questions?