Five year plan at a glance:
Since Independence, the
Indian economy has been premised on the concept of planning. This has been
carried through the Five‐Year Plans, developed,
executed, and monitored by the Planning Commission. With the Prime Minister as
the ex‐officio Chairman, the commission has a nominated
Deputy Chairman, who holds the rank of a Cabinet Minister. The Eleventh Plan
completed its term in March 2012 and the Twelfth Plan is currently underway.
Five‐Year Plans (FYPs) are centralized and integrated
national economic programs. Joseph Stalin implemented the first FYP in the
Soviet Union in the late 1920s. Most communist states and several capitalist
countries subsequently have adopted them. China and India both continue to use
FYPs, although China renamed its Eleventh FYP, from 2006 to 2010, a guideline
(guihua), rather than a plan (jihua), to signify the central government’s more
hands‐off approach to development. India launched its
First FYP in 1951, immediately after independence under socialist influence of
first Prime Minister Jawaharlal Nehru.
The First Five‐Year Plan was one of the most important because it
had a great role in the launching of Indian development after the Independence.
Thus, it strongly supported agriculture production and it also launched the
industrialization of the country. It built a particular system of mixed
economy, with a great role for the public sector (with an emerging welfare
state), as well as a growing private sector (represented by some personalities
as those who published the Bombay Plan).
The first Indian Prime
Minister, Pandit Jawaharlal Nehru presented the First Five‐Year Plan to the Parliament of India and needed
urgent attention. The First Five‐year
Plan was launched in 1951 which mainly focused in development of the
agricultural sector. The First Five‐Year
Plan was based on the Harrod–Domar model.
The total planned
budget of Rs.2069 crore was allocated to seven broad areas: irrigation and
energy (27.2%), agriculture and community development (17.4%), transport and
communications (24%), industry (8.4%), social services (16.64%), land
rehabilitation (4.1%), and for other sectors and services (2.5%). The most
important feature of this phase was active role of state in all economic
sectors. Such a role was justified at that time because immediately after
independence, India was facing basic problems—deficiency of capital and low
capacity to save.
The target growth rate
was 2.1% annual gross domestic product (GDP) growth; the achieved growth rate
was 3.6% the net domestic product went up by 15%. The monsoon was good and
there were relatively high crop yields, boosting exchange reserves and the per
capita income, which increased by 8%. National income increased more than the
per capita income due to rapid population growth. Many irrigation projects were
initiated during this period, including the Bhakra Dam and Hirakud Dam. The
World Health Organization (WHO), with the Indian government, addressed
children's health and reduced infant mortality, indirectly contributing to
population growth.
At the end of the plan
period in 1956, five Indian Institutes of Technology (IITs) were started as
major technical institutions. The University Grant Commission (UGC) was set up
to take care of funding and take measures to strengthen the higher education in
the country. Contracts were signed to start five steel plants, which came into
existence in the middle of the Second Five‐Year
Plan. The plan was quasi successful for the government.
The Second Plan,
particularly in the development of the public sector. The plan followed the
Mahalanobis model, an economic development model developed by the Indian statistician
Prasanta Chandra Mahalanobis in 1953. The plan attempted to determine the
optimal allocation of investment between productive sectors in order to
maximize long‐run economic growth. It used the prevalent state of
art techniques of operations research and optimization as well as the novel
applications of statistical models developed at the Indian Statistical
Institute. The plan assumed a closed economy in which the main trading activity
would be centered on importing capital goods.
Hydroelectric power
projects and five steel plants at Bhilai, Durgapur, and Rourkela were
established. Coal production was increased. More railway lines were added in
the north east. The Tata Institute of Fundamental Research was established as a
research institute. In 1957 a talent search and scholarship program was begun
to find talented young students to train for work in nuclear power.
The total amount
allocated under the Second Five‐Year Plan in India was
Rs.48 billion. This amount was allocated among various sectors: power and
irrigation, social services, communications and transport, and miscellaneous.
The target growth rate
was 4.5% and the actual growth rate was 4.27%.[6] 1956‐industrial policy
The Third Five‐year Plan stressed 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
defence industry and the Indian Army. In 1965–1966, India fought a War with
Pakistan. There was also a severe drought in 1965. The war led to inflation and
the priority was shifted to price stabilization. The construction of dams
continued. Many cement and fertilizer plants were also built. Punjab began
producing an abundance of wheat.
Many primary schools
were started in rural areas. In an effort to bring democracy to the grass‐ root level, Panchayat elections were started and
the states were given more development responsibilities.
State electricity
boards and state secondary education boards were formed. States were made
responsible for secondary and higher education. State road transportation
corporations were formed and local road building became a state responsibility.
The target growth rate
was 5.6%, but the actual growth rate was 2.4%.[6]
Due to miserable
failure of the Third Plan the government was forced to declare "plan
holidays" (from 1966–67, 1967–68, and 1968–69). Three annual plans were
drawn during this intervening period. During 1966‐67
there was again the problem of drought. Equal priority was given to
agriculture, its allied activities, and industrial sector. The main reasons for
plan holidays were the war, lack of resources, and increase in inflation.
At this time Indira
Gandhi was the Prime Minister. The Indira Gandhi government nationalised 14
major Indian banks and the Green Revolution in India advanced agriculture. In
addition, the situation in East Pakistan (now Bangladesh) was becoming dire as
the Indo‐Pakistan War of 1971 and Bangladesh Liberation War
took funds earmarked for industrial development. India also performed the
Smiling Buddha underground nuclear test in 1974, partially in response to the
United States deployment of the Seventh Fleet in the Bay of Bengal. The fleet
had been deployed to warn India against attacking West Pakistan and extending
the war.
The target growth rate
was 5.6%, but the actual growth rate was 3.3%.
The Fifth Five‐Year Plan laid stress on employment, poverty
alleviation (GaribiHatao), and justice. The plan also focused on self‐reliance in agricultural production and defence. In
1978 the newly elected Morarji Desai government rejected the plan. The
Electricity Supply Act was amended in 1975, which enabled the central
government to enter into power generation and transmission.
The Indian national
highway system was introduced and many roads were widened to accommodate the
increasing traffic. Tourism also expanded. It was followed from 1974 to 1979. It
was mainly followed in Tamil Nadu by a protester Dhanya, who was a girl just
studying 8th now had made the citizens of India to follow it and made all of
them to know our rights.
The target growth rate
was 4.4% and the actual growth rate was 5.0%.
The Janata Party
government rejected the Fifth Five‐Year
Plan and introduced a new Sixth Five‐
Year Plan (1978‐1983). This plan was again rejected by the Indian
National Congress government in 1980 and a new Sixth Plan was made.
The Sixth Five‐Year Plan marked the beginning of economic
liberalisation. Price controls were eliminated and ration shops were closed.
This led to an increase in food prices and an increase in the cost of living.
This was the end of Nehruvian socialism.
Family planning was
also expanded in order to prevent overpopulation. In contrast to China's strict
and binding one‐child policy, Indian policy did not rely on the
threat of force. More prosperous areas of India adopted family planning more
rapidly than less prosperous areas, which continued to have a high birth rate.
The Sixth Five‐Year Plan was a great success to the Indian economy.
The target growth rate was 5.2% and the actual growth rate was 5.4%. The only
Five‐Year Plan which was done twice.
The Seventh Five‐Year Plan marked the comeback of the Congress Party
to power. The plan laid stress on improving the productivity level of
industries by upgrading of technology.
The main objectives of
the Seventh Five‐Year Plan were to establish growth in areas of
increasing economic productivity, production of food grains, and generating
employment.
As an outcome of the
Sixth Five‐Year Plan, there had been steady growth in
agriculture, controls on the rate of inflation, and favourable balance of
payments which had provided a strong base for the Seventh Five‐Year Plan to build on the need for further economic
growth. The Seventh Plan had strived towards socialism and energy production at
large. The thrust areas of the Seventh Five‐Year
Plan were:
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, and making India an independent
economy.
Based on a 15‐year period of striving towards steady growth, the
Seventh Plan was focused on achieving the prerequisites of self‐sustaining growth by the year 2000. The plan
expected the labour force to grow by 39 million people and employment was
expected to grow at the rate of 4% per year.
Some of the expected
outcomes of the Seventh Five‐Year Plan India are
given below:
Balance of payments
(estimates): Export – 330 billion (US$5.5 billion), Imports – (‐) 540 billion (US$9.0 billion), Trade Balance – (‐)210 billion (US$3.5 billion)
Merchandise exports
(estimates): 606.53 billion (US$10.1 billion)
Merchandise imports
(estimates): 954.37 billion (US$15.8 billion)
Projections for balance
of payments: Export – 607 billion (US$10.1 billion), Imports – (‐) 954 billion (US$15.8 billion), Trade Balance‐ (‐) 347 billion (US$5.8
billion)
Under the Seventh Five‐Year Plan, India strove to bring about a self‐sustained economy in the country with valuable
contributions from voluntary agencies and the general populace.
The target growth rate
was 5.0% and the actual growth rate was 6.01%.
The Eighth Plan could
not take off in 1990 due to the fast changing political situation at the centre
and the years 1990‐91 and 1991‐92
were treated as Annual Plans. The Eighth Plan was finally launched in 1992
after the initiation of structural adjustment policies.
1989–91 was a period of
economic instability in India and hence no five‐year
plan was implemented. Between 1990 and 1992, there were only Annual Plans. In
1991, India faced a crisis in foreign exchange (forex) reserves, left with
reserves of only about US$1 billion. Thus, under pressure, the country took the
risk of reforming the socialist economy. P.V. NarasimhaRao was the ninth Prime
Minister of the Republic of India and head of Congress Party, and led one of
the most important administrations in India's modern history, overseeing a
major economic transformation and several incidents affecting national
security. At that time Dr. Manmohan Singh (former Prime Minister of India)
launched India's free market reforms that brought the nearly bankrupt nation
back from the edge. It was the beginning of privatisation and liberalisation in
India.
Modernization of
industries was a major highlight of the Eighth Plan. Under this plan, the
gradual opening of the Indian economy was undertaken to correct the burgeoning
deficit and foreign debt. Meanwhile India became a member of the World Trade
Organization on 1 January 1995. This plan
can be termed as, the
Rao and Manmohan model of economic development. The major objectives included,
controlling population growth, poverty reduction, employment generation,
strengthening the infrastructure, institutional building, tourism management,
human resource development, involvement of Panchayatirajs, Nagar Palikas, NGOs,
decentralisation and people's participation.
Energy was given
priority with 26.6% of the outlay. An average annual growth rate of 6.78%
against the target 5.6%[6] was achieved.
To achieve the target
of an average of 5.6% per annum, investment of 23.2% of the gross domestic
product was required. The incremental capital ratio is 4.1. The saving for
investment was to come from domestic sources and foreign sources, with the rate
of domestic saving at 21.6% of gross domestic production and of foreign saving
at 1.6% of gross domestic production.
The Ninth Five‐Year Plan came after 50 years of Indian
Independence. AtalBihari Vajpayee was the Prime Minister of India during the
Ninth Five‐Year Plan. The Ninth Five‐Year Plan tried primarily to use the latent and
unexplored economic potential of the country to promote economic and social
growth. It offered strong support to the social spheres of the country in an
effort to achieve the complete elimination of poverty. The satisfactory
implementation of the Eighth Five‐Year
Plan also ensured the states' ability to proceed on the path of faster
development. The Ninth Five‐Year Plan also saw
joint efforts from the public and the private sectors in ensuring economic
development of the country. In addition, the Ninth Five‐Year Plan saw contributions towards development from
the general public as well as governmental agencies in both the rural and urban
areas of the country. New implementation measures in the form of Special Action
Plans (SAPs) were evolved during the Ninth Five‐
Year Plan to fulfill targets within the stipulated time with adequate
resources. The SAPs covered the areas of social infrastructure, agriculture,
information technology and Water policy.
The Ninth Five‐Year Plan had a total public sector plan outlay of ₨ 8,59,200crores. The Ninth Five‐Year Plan also saw a hike of 48% in terms of plan
expenditure and 33% in terms of the plan outlay in comparison to that of the
Eighth Five‐Year Plan. In the total outlay, the share of the
centre was approximately 57% while it was 43% for the states and the union
territories.
The Ninth Five‐Year Plan focused on the relationship between the
rapid economic growth and the quality of life for the people of the country.
The prime focus of this plan was to increase growth in the country with an emphasis
on social justice and equity. The Ninth Five‐Year
Plan placed considerable importance on combining growth oriented policies with
the mission of achieving the desired objective of improving policies which
would work towards the improvement of the poor in the country. The Ninth Five‐Year Plan also aimed at correcting the historical
inequalities which were still prevalent in the society.
The main objective of
the Ninth Five‐Year Plan was to correct historical inequalities and
increase the economic growth in the country. Other aspects which constituted
the Ninth Five‐Year Plan were:
·
Population
control.
·
Generating
employment by giving priority to agriculture and rural development.Reduction of
poverty.
·
Ensuring proper
availability of food and water for the poor.
·
Availability of primary health care facilities and
other basic necessities.
·
Primary
education to all children in the country.
·
Empowering the
socially disadvantaged classes like Scheduled castes, Scheduled tribes and
other backward classes.
·
Developing self‐reliance in terms of agriculture.
·
Acceleration in
the growth rate of the economy with the help of stable prices.
·
Structural
transformations and developments in the Indian economy.
·
New initiatives
and initiation of corrective steps to meet the challenges in the economy of the
country.
·
Efficient use of
scarce resources to ensure rapid growth.
·
Combination of
public and private support to increase employment.Enhancing high rates of
export to achieve self‐reliance.
·
Providing
services like electricity, telecommunication, railways etc.
·
Special plans to
empower the socially disadvantaged classes of the country.
·
Involvement and
participation of Panchayati Raj institutions/bodies and Nagar Palikas in the
development process.
·
The Ninth Five‐Year Plan achieved a GDP growth rate of 5.4% against
a target of 6.5%
·
The agriculture
industry grew at a rate of 2.1% against the target of 4.2%
·
The industrial
growth in the country was 4.5% which was higher than that of the target of 3%
·
The service industry
had a growth rate of 7.8%.
·
An average
annual growth rate of 6.7% was reached.
The Ninth Five‐Year Plan looks through the past weaknesses in order
to frame the new measures for the overall socio‐economic
development of the country. However, for a well‐planned
economy of any country, there should be a combined participation of the
governmental agencies along with the general population of that nation. A
combined effort of public, private, and all levels of government is essential
for ensuring the growth of India's economy.
The target growth was
7.1% and the actual growth was 6.8%.
The main objectives of
the Tenth Five‐Year Plan were:
Attain 8% GDP growth
per year.
Reduction of poverty
rate by 5% by 2007.
Providing gainful and
high‐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.
20‐point program was introduced.
Target growth: 8.1% ‐ growth achieved: 7.7%
Expenditure of ₨ 43,825 crores for tenth five years
Rapid and inclusive
growth.
Emphasis on social
sector and delivery of service therein.
Empowerment through
education and skill development.
Reduction of gender
inequality.
Environmental
sustainability.
To increase the growth
rate in agriculture, industry and services to 4%,10% and 9% respectively.
The Twelfth Five‐Year Plan of the Government of India has decided for
the growth rate at 8.2% but the National Development Council (NDC) on 27 Dec
2012 approved 8% growth rate for 12th five‐
year plan.
Based on the
recommendation of HLEG (High Level Expert Group) Report and other stakeholder
consultations, the key elements of Twelfth Five Year plan strategy was
outlined. The long term objective of this strategy was to establish a system of
Universal Health Coverage (UHC) in the country. Following are the 12th plan
period strategy: Substantial expansion and strengthening of public sector
health care system, freeing the vulnerable population from dependence on high
cost and often unreachable private sector health care system.
·
Health sector
expenditure by central government and state government, both plan and non‐ plan will have to be substantially increased by the
twelfth five year plan. It was increased from 0.94 per cent of GDP in tenth
plan to 1.04 per cent in eleventh plan. The provision of clean drinking water
and sanitation as one of the principal factors in control of diseases is well
established from the history of industrialized countries and it should have
high priority in health related resource allocation. The expenditure on health
should increase to 2.5 per cent of GDP by the end of Twelfth Five Year Plan.
·
Financial and
managerial system will be redesigned to ensure efficient utilization of
available resources and achieve better health outcome. Coordinated delivery of
services within and across sectors, delegation matched with accountability,
fostering a spirit of innovation are some of the measures proposed.
·
Increasing the
cooperation between private and public sector health care providers to achieve
health goals. This will include contracting in of services for gap filling, and
various forms of effectively regulated and managed Public‐Private Partnership, while also ensuring that there
is no compromise in terms of standards of delivery and that the incentive
structure does not undermine health care objectives.
·
The present
RashtriyaSwasthyaBhimaYojana (RSBY) which provides cash less in‐patient treatment through an insurance based system
should be reformed to enable access to a continuum of comprehensive primary,
secondary and tertiary care. In twelfth plan period entire Below Poverty
Line(BPL) population will be covered through RSBY scheme. In planning health
care structure for the future, it is desirable to move from a 'fee‐for‐service' mechanism, to
address the issue of fragmentation of services that works to the detriment of
preventive and primary care and also to reduce the scope of fraud and induced
demand.
·
In order to
increase the availability of skilled human resources, a large expansion of
medical schools, nursing colleges, and so on, is therefore is necessary and
public sector medical schools must play a major role in the process. Special
effort will be made to expand medical education in states which are under‐served. In addition, a massive effort will be made
to recruit and train paramedical and community level health workers.
·
The multiplicity
of Central sector or Centrally Sponsored Schemes has constrained the
flexibility of states to make need based plans or deploy their resources in the
most efficient manner. The way forward is to focus on strengthening the pillars
of the health system, so that it can prevent, detect and manage each of the
unique challenges that different parts of the country face.
·
A series of
prescription drugs reforms, promotion of essential, generic medicine and making
these universally available free of cost to all patients in public facilities
as a part of the Essential Health Package will be a priority.
·
Effective
regulation in medical practice, public health, food and drugs is essential to
safeguard people against risks and unethical practices. This is especially so
given the information gaps in the health sector which make it difficult for
individual to make reasoned choices.
·
The health
system in the Twelfth Plan will continue to have a mix of public and private
service providers. The public sector health services need to be strengthened to
deliver both public health related and clinical services. The public and
private sectors also need to coordinate for the delivery of a continuum of
care. A strong regulatory system would supervise the quality of services
delivered. Standard treatment guidelines should form the basis of clinical care
across public and private sectors, with the adequate monitoring by the
regulatory bodies to improve the quality and control the cost of care.
Related Topics
Privacy Policy, Terms and Conditions, DMCA Policy and Compliant
Copyright © 2018-2024 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.