Five Year Plans of India

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Five Year Plans of India for Kerala PSC

The notion of economic planning in India was inherited from Russia (then USSR), and Joseph Stalin was the first person in the world to adopt the Five Year Plan in 1928. Until recently, India has had 12 five-year plans.

In 1951, the first five-year plan was implemented. The drafting of new five-year plans was halted in 2017 by the NDA government. The 12th Five-Year Plan was India's final five-year plan.

Five-year plans are a recurring feature of all Kerala PSC examinations. As a result, we attempted to incorporate all of the points from the various previous year question papers. 

List of all Five Year Plans of India


History Behind the Five Year Plan

Long before Independence, the Indian National Congress recognized the need of planning for the growth of a new embryonic nation. It resulted in the establishment of the National Planning Committee in 1938.

First Five Year Plan

In 1944, a group of industrialists joined together and prepared a unified proposal for establishing a planned economy in India. It is commonly referred to as the Bombay Plan.

Subsequently, the Gandhian Plan in 1944, the Peoples Plan in 1945 (by the Postwar Reconstruction Committee of the Indian Trade Union), and the Sarvodaya Plan by Jaiprakash Narayan in 1950 were all steps in this direction.

Following is the list of all 12 five-year plans of India:

 First Five Year Plan

  • Duration  – 1951-1956.
  • Based on – Harrod–Domar model with modifications.
  • Also known as the Agricultural Model.
  • Under the leadership of Prime Minister Jawaharlal Nehru.
    • Presented the first five-year plan in the Parliament (December 8, 1951).
  • Came into effect on – April 1, 1951.
  • The architect of the Preamble of the First Five-Year Plan – Dr. K.N. Raj (Kakkadan Nandanath Raj).
    • Only professional economist in the Planning Commission.
    • The only Malayali who participated in the preparation of the draft of the First Five-Year Plan.
  • Focus – Agriculture, Irrigation & Electrification.
  • Launched –
    • Major Irrigation Schemes  – Hirakud, Damodarwali & Bhakra Nangal.
    • Thottapalli Spillway (1955)
    • Five IITs.
    • University Grants Commission (UGC), 1953.
    • Community Development Programme (1956).
    • National Extension Service (1953)
    • All India Institute of Medical Sciences (AIIMS), 1956.
  • Success rate –⬆3.6 % GDP growth (> 2.1% target).

Second Five Year Plan

  • Duration – 1956 -1961.
  • Based on – P.C. Mahalanobis Model / Nehru-Mahalanobis model.
  • Also known as the Mahalanobis Plan.
    • created in 1953 by Indian statistician Prasanta Chandra Mahalanobis. 
  • Under the leadership of Jawaharlal Nehru.
  • Focus – Industry, Transport, Health & Reduction of Unemployment.
  • Also known as the Industrial & Transport plan. 
  • The concept of mixed economy was introduced.
  • The second Industrial policy resolution (1956) was adopted.
  • Panchayati Raj was introduced.
    • Launched on – October 2, 1959.
    • First Launched in – Nagour (Rajasthan).
    • The Panchayat Raj system was introduced under the recommendation of – Belwant Rai Mehta Committee.
  • Launched  – 
    • Rourkela, Bhilai & Durgapur Steel Plants.
    • Perambur Coach Factory (Tamil Nadu)
    • Indian Institute of Management
    • Tata Institute of Fundamental Research.
  • Set up Khadi and Village Industries Commission (1957).
  • Success rate  –⬇4.27 % growth (< 4.5% target).
  • However, this plan was criticized by many experts and as a result, India faced a payment crisis in the year 1957.

Third Five Year Plan

  • Duration – 1961 - 1966.
  • Based on  – John Sandy and Sukhamoy Chakraborty's model.
  • Also known as the Gadgil Yojna / Gadgil Formula. (only for Kerala PSC)
    • Named after D.R. Gadgil, the Deputy Chairman of the Planning Commission.
  • Focus Areas – Self-sufficiency of the economy, Food grain production especially wheat.
  • Panchayat elections were introduced.
  • Launched  –
    • Bokaro Steel Plant
    • State Electricity Board
    • State Secondary Education Board.
    • National Dairy Development Board (1965).
    • Numerous cement and fertilizer plants were built.
  • Success rate  – ⬇2.8 % growth (< 5.8% target).
    • Failed due to the Indo-China War (1962), the Indo-Pak War (1965), the severe drought of 1965 & inflation.

Plan Holidays (Three Annual Plans)

  • Plan Holiday  – the three-year period from 1966 to 1969.
  • Due to the prevailing geopolitical situation and severe food shortage.
  • Prime Minister of India at the time of the announcement of the Plan Holiday  –  Indira Gandhi.
  • The government declared devaluation of the rupee, to boost the country's exports. 

Fourth Five Year Plan

  • Duration  – 1969 - 1974.
  • Focus  –  Sustainable growth and self-sufficiency
  • Based on  – Gadgil's model of strategic growth with stability
  • Under the leadership of Indira Gandhi.
  • First Phase of Nationalization of 14 major Banks (1969).
  • Tried to implement family planning programs.
  • Launched – 
    • Green Revolution. 
    • Operation Flood (1970)
      • Launched by – National Dairy Development Board.
      • To increase Milk Production.
    • Drought Prone Area Programme.
  • India conducted its first nuclear test (Smiling Buddha) during the 3rd Five Year Plan in 1974.
  • Success rate  – ⬇3.4 % growth (< 5.7% target).
    • Failed due to the 1971 Indo-Pakistani War and the Bangladesh Liberation War.

Fifth Five Year Plan

  • Duration – 1974 - 1979.
  • The draft of Fifth Five Year Plan was prepared and launched by – D.P. Dhar.
  • Focus – Poverty alleviation (Garibi Hatao), Employment, Justice, and self-sufficiency
    • Indira Gandhi 's slogan' Garibi Hatao. '
  • Set up – 
    • the Twenty-point Programme (1975).
    • Minimum Needs Programme (MNP) 
      • Prepared by –  D.P. Dhar.
      • Aim – to provide basic minimum needs.
    • Indian National Highway System
    • Command Area Development Scheme (1974-75) 
      • for agricultural production.
    • ICDS (Integrated Child Development Services, 1975)
  • The Electricity  Supply Act was amended in 1975. 
    • allowing the federal government to enter the electricity generation and transmission sector.
  • The only five-year plan that couldn't complete its full term.
  • Success rate – ⬆4.9% growth (> 4.4% target).

Rolling Plan

  • Duration – 1978 -1980.
  • Introduced by Morarji Desai's Janata government in 1978-80. 
  • The concept of the Rolling plan was put forward by – Prof. Gunner Myrdal. 
  • Under the Rolling plan, three plans were introduced:
    1. For the budget of the present year.
    2. This plan was for a fixed number of years – 3,4 or 5.
    3. Perspective plan for long terms – 10, 15, or 20 years. 
  • The Rolling Plan was rejected by Congress in 1980 and the Sixth Five-Year Plan was introduced.

Sixth Five Year Plan

  • Duration – 1980-1985.
  • Also known as Gandhian Model.
  • Focus – Increase national income, modernize existing technology and eradicate poverty.
  • Under the leadership of – Indira Gandhi.
  • Based on –  Yojna investment, infrastructure changes, and a growth model trend.
  • Marked the end of Nehruvian Socialism.
  • Launched – 
    • NABARD (National Bank for Agriculture and Rural Development)
      • Founded on: July 12, 1982.
      • Headquarters: Mumbai.
      • Under the recommendation of the Shivaraman Committee.
    • NREP (National Rural Employment Program)
    • IRDP (Integrated Rural Development Program)
    • TRYSEM (Training of Rural Youth for Self Employment), 1979
    • RLEGP (Rural Landless Employment Guarantee Programme), 1983
    • DWCRA (Development of Women and Children in Rural Areas), 1982
  • Family planning was introduced.
  • Success rate –⬆5.4% growth (> 5.2% target).

Seventh Five Year Plan

  • Duration – 1985-1990.
  • Focus – Job creation, increase in food grain production, modernization, self-sufficiency, social justice.
  • Under the leadership of – Rajiv Gandhi.
  • The private sector was given precedence over the public sector for the first time.
  • Made great strides in the field of communications and transport.
  • The technical adviser to the Prime Minister at the time of the communication revolution in India – Sam Pitroda.
  • Launched – 
    • Jawahar Rozgar Yojana
      • Launched on – April 1, 1989.
      • Aim – to provide paid jobs for the rural poor.
      • by merging National Rural Employment Program (NREP) and Rural Landless Employment Guarantee Programme (RLEGP).
      • Later on April 1, 1999, it was replaced by Jawahar Gram Samridhi Yojna.
  • Success rate –⬆5.6% growth (> 5.0% target).

Annual Plans

  • Duration – 1990-91 &1991-92.
  • The Eighth Five-Year Plan could not be executed due to the country's tumultuous political atmosphere in 1989-1991.
  • India's Foreign Exchange reserves were exhausted, leaving the government with only about $1 billion in reserves. As a result of the pressure, the country runs the risk of abandoning its socialist economy.
  • Liberalization, Privatisation, and Globalisation (LPG) were introduced by Prime Minister P.V. Narasimha Rao.
  • Finance Minister – Dr. Manmohan Singh.

Eighth Five Year Plan

  • Duration – 1992-1997.
  • Focus – Human Development and modernization of industries.
  • Under the leadership of – P.V. Narasimha Rao.
  • Based on – Rao-Manmohan Model of Economy.
    • Also known as the Manmohan Model.
  • The New Economic Policy of India was launched.
  • Launched – 
    • Pradhan Mantri Rosgar Yojana (PMRY)
      • Aim – to provide self-employment opportunities to educated youths who are unemployed.
    • Mahila Samriddhi Yojana (1993)
    • National Stock Exchange (1992)
    • Panchayati Raj (April 24, 1993)
  • India became a member of the World Trade Organisation on 1 January 1995.
  • Laid emphasis on decentralization involving the Panchayats and Nagar Palikas. 
  • Success rate–⬆6.6% growth (> 5.6% target).

Ninth Five Year Plan

  • Duration  –  1997- 2002.
  • Also known as People's Plan/ Participatory Plan.
  • Focus –  Housing assistance for the poor, nutrition for children, access to clean water, enhancement of primary health care facilities, universalization of primary education, and connecting villages with the mainstream
  • Under the leadership of – Atal Bihari Vajpayee.
  • Five Year Plan started on the 50th anniversary of independence.
  • Aimed at women empowerment (PSC Answer Key says it's 10th Five Year Plan)
  • Launched –
    • Sarva Shiksha Abhiyan (2001)
    • Sampoorna Grameen Rozgar Yojana (2003).
  • India conducted its second nuclear test (Operation Shakti) during the 9th Five Year Plan in 1998.
  • Success rate –  5.6%⬇growth (< 6.5% target).

Tenth Five Year Plan

  • Duration – 2002- 2007.
  • Also Kerala Model Development Plan.
  • Under the leadership of – Atal Bihari Vajpayee & Dr. Manmohan Singh.
  • Focus – Reduce gender discrimination in education and wages, reduce maternal and child mortality, improve literacy, increasing foreign investment, provide clean drinking water for all by 2009 and modernize water resources.
  • Aim –  
    • to reduce the poverty rate to 15% by 2012.
    • to double India's per capita income in the next ten years.
  • More engagement of the NDC in planning formulation.
  • Bharat Nirman Project, a business plan for rural infrastructure was introduced.
  • Launched –
    • National Rural Health Mission,
    • National Rural Employment Guarantee Programme.
  • Success rate – ⬇7.6% growth (< 8.0% target).

Eleventh Five Year Plan

  • Duration –  2007- 2012.
  • Also known as Education Plan.
  • Focus  – Rapid and Inclusive growth
  • Under the leadership of – Dr. Manmohan Singh.
  • C. Rangarajan was in charge of preparing it.
  • Priority for the sustainability of food items and environment 
  • Launched –
    • National Rural Livelihood Mission,
  • Success rate – ⬇8% growth (< 9% target).
  • The five-year plan that achieved the highest growth rate.

Twelfth Five Year Plan

  • Duration – 2012- 2017.
  • Focus – Faster, More Inclusive, and Sustainable Growth.
  • Under the leadership of –  Manmohan Singh.
  • To strengthen infrastructure projects, and provide electricity supply in all villages.
  • Aadhaar Scheme, Aam Aadmi Bima Yojana
  • Success rate  – ⬇8% growth (< 9% target).

The decades-old five-year plan has been replaced with a new three-year action plan that will be included in the seven-year strategy paper and 15-year vision document.

On April 1, 2017, the NITI-Aayog, which replaced the Planning Commission, announced a three-year action plan that is effective through 2020.

India's five-year plans were finalized by the National Development Council (NDC).

📝SideNotes:

  • Name the famous book written by Gunnar Myrdal – Asian drama.
    • The concept of Rolling plan was derived from this book.
  • The first country in the world to start a Rolling Plan – Pakistan.
  • The first state in India to implement the Panchayatraj System – Rajasthan.
  • Father of Indian Budget – P.C.Mahalanobis.
  • Father of Green Revolution in India – M.S. Swaminathan.
  • Father of India's IT revolution – Sam Pitroda.
  • Father of New Economic Policy (NEP) of India 1991 – Manmohan Singh.
    • NEP was introduced on – July 24, 1991.
  • The Banking Regulation Act was passed in the year – 1949.
  • The National Development Council was formed in  – 1952.
  • The chairman of the National Development Council was – the Prime Minister.
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