Five-Year Plans of India

Indian Economy is based on the concept of planning. This is carried through her Five-Year Plans, developed, executed and monitored by the Planning Commission.

The Tenth Plan is currently underway.

First Plan (1951—1956)

The first five-year plan focused on Agriculture. During First Five-Year Plan net domestic product went up by 15%.It was due to the fact that the first plan laid foremost priority on agriculture.Per capita income also went up by 8%.Lower increase of per capita income as compared to national income was due the rapid increase in population.

Second Plan (1956-1961)

The second five-year plan focussed on industry, especially heavy industry. Domestic production of industrial products was encouraged, particularly in the development of the public sector.

Third Plan (1961-1966)

The planned stress was on agriculture, but due to the Sino-Indian War of 1962 instead of agriculture the focus shifted towards defence and development. China war exposed the weakness of the economy. In 1965-66, the Green Revolution was started for the advancement of Indian agriculture. The wars lead to the rise in price in India. Therefore the priority shifted to price stabilization.

Between 1966 to 1969 only Anual Plans.

Fourth Plan (1969-1974)

During the early period of the plan, several droughts affected the economy. Indian Currency was devalued due to rising inflation. Then an annual plan was introduced to resolve immediate problems, but still unemployement and poverty were major problems so this remained the focus of the plan. Another problem rose in 1973 in form of the hike in fuel prices but the focus remained unchanged.

Fifth Plan (1974-1979)

Stress on employement poverty removal and justice. Self reliance with respect to agricultural production and defence. During the 4th and 5th plan, stress was on ratuinal minimum ; but it was realized that still poverty plagued the nation. In 1978 the newly elected Morarji Desai government rejected the plan.

Sixth Plan (1979-1984)

Called the Janata Government Sixth Five Year Plan. The new government rejected the Nehruvian Model of economy and stressed on village and cottage industries, natural mobilization of resources, so increase in employment.

Seventh Plan (1984-1989)

The comeback of Indian National Congress Party into power. The stress was on improving productivity level of industries by upgradation of technology.

The time period of 1989-91 was a time of political instability for the nation hence no five year plan was implemented. Between 1990 and 1992 only Anual Plans

Eighth Plan (1992-1997)

Modernisation of industies, gradual opening of economy because of huge deficit and foreign debt.

Ninth Plan (1997-2002)

1997-2002 The target rate of growth during the plan is proposed to be 7%. India should be able to achieve it because sound base for rapid growth has already been laid in the country.

Tenth Plan (2002-2007)

The tenth five year plan gives more importance to empowerment of women, cleanliness of rivers, raising the age of marriage and improve the economic base of India .

Gourt Home::Gourt :: Five-Year Plans of India