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.
First Five Year Plan – 1951-1956
Objectives
- Correcting the disequilibrium in the economy caused by war and partitioning
- Rising National Income and steady improvement in living standard
- evelopment of Agriculture was also the aim of the Plan
Achievement : Growth rate of 3.6 % (Target : 2.1 %)
- 1952 Community Development Program start
- University Grant Commission was setup
- Number of Projects like Bakranangal, Damodar Valley, Hirakud etc undertaken
- Successful plan as good harvest in the last two years of the plan
Second Five Year Plan- 1956-1961
- The second five year plan was bolder than the first five year plan
- It involves the plan of development of both Urban and Rural India
Objectives
- It involves the Rapid Industrialisation
- Rebuild rural India and to advance towards the socialistic pattern of Society
Achievements : Growth rate of 4.1 % per annum (Target : 4.5%)
- Construction of Steel plants in Bhiali (Chhattisgharh), Durgapur (West Bengal) and Rourkela (Odisha)
- Deficit Financing started in this plan
Deficit Finance: Government spend more money than it receives as revenue, the difference is made up by borrowing or minting new funds
Third Five Year Plan-1961-1966
Objectives
- Self Reliant and Self Sustained Economy
- Secure rise in national income of over 5% per annum
- Expand basic industries like steel,fuel and power
- Substantial expansion of employment opportunities
Achievements : Growth rate of 2.72% per annum (Target :5.6%)
- Bokaro steel plant in 1964
- Extension of Intensive Agriculture District program (IADP) through out India
- Adding high yield verities of program under the new Agricultural strategy
Reason for failure of achievement : Indo-China war, Indo-Pak war, Two successive years of drought, devaluation of currency
Fourth Five Year Plan 1969-1974
Objectives
- Self reliance and growth with stability
- Attainment of social Justice and equality
- Create more employment opportunities
- Perspective planning was launched
Achievements : Growth rate of 2.05 % per annum (Target : 5.7%)
- 14 banks were nationalized
- Operation for increasing milk production
- MRTP act 1969 (Monopolies and Restrictive Trade Practices Act)
- India started overcome the crisis caused by drought, war and recession
Fifth Five Year Plan 1974-1978
Objectives
- Removal of Poverty
- Self reliance
- To bring inflation under the control
- Raise the income of people below poverty line
Achievements : Growth rate of 4.83 % per annum (Target : 4.4%)
- Minimum needs program
- Garibi Hatao Slogan
- To step up domestic rate of saving
Annual Plan 1978-1980
Fifth plan terminated by the Janatha Party came in power in 1978 and executed plan on 1978-1980. They introduced the Rolling Plan
- Enlargement of employment potential in agriculture.
- Allied activities to raise income of lower class society.
Sixth Five Year Plan 1980-1985
Objectives
- Employment Generation
- Strengthening modernization to achieve economic and self reliance
Achievements : Growth rate of 5.6 % per annum (Target : 5.2%)
Per Capita Income : 3.1%
Other Features
- Strengthening agriculture and industry
- four main scheme were implemented under this planning
- IRDP – Integrated Rural Development Program
- NREP – National Rural Employment Program
- TRYSEM – Training for rural Youth in Self Employment
- DWCRA – Development of Women and Children in Rural Areas
Seventh Five Year Plan 1985-1990
Objectives
- Modernisation
- Growth, Self reliance and social justice
- To accelerate food grains production
Achievements : Growth rate of 6.0 % per annum (Target : 5.0%)
Other Features
- Jawaharlal Rozgar Yojana Employment Generated Program
- Speed post services started in 1986 August 1
- It was the beginning of liberalization of Indian Economy
Annual Plan
Due to economic crisis and political instability their was five year plan from 1990-92. Annual plan was formulated.
Eighth Five Year Plan – 1992-1997
Objectives
- Human Resource Development
- To increase average industrial growth rate to 7.5%
- Also called as Rao Manmohan Singh Model
- First indicative plan
Achievements : Growth rate of 6.8 % per annum (Target : 5.6%)
Other Features
- Pradhan Manthri Rozgar Yojana started in 1993
- India became the member of World Trade Organisation
- It was the beginning of privatization, liberalisation and globalisation
- Improvement in trade and current account deficit
- Agriculture and industrial growth increased
Ninth Five Year Plan – 1997-2002
Objectives
- Equitable distribution and Growth with stability
- Empowerment of women and backward communities
Achievements : Growth rate of 5.4 % per annum (Target : 6.5%)
Other Features
- PCI increased three times than the previous
- Launched in the 50th year of India independent
- Agriculture grew by 2.1% against target 4.2%
Tenth Five Year Plan – 2002-2007
Objectives
- Growth with human development
- Rapid sustainable growth in agriculture
- Literacy to increase from 65 to 75
Achievements : Growth rate of 7.7 % per annum (Target : 8.1%)
Other Features
- 39 Lakh employment opportunities
- Infant mortality down to 76 per 1000
- Children enrolled in school chalo abhyan
- Kanya Vidhya Dhan Yojana started for girls passed 12 Rs. 2000
- Birth rate down to 31.3 per 1000 and death rate by 9.5 per 1000
Eleventh Five Year Plan – 2007-2012
Objectives
- Towards faster and inclusive growth
- Improving quality of citizen
- National goals on socio-economic development
- Generation of 58 million employment opportunities
Achievements : Growth rate of 8 % per annum (Target : 9%)
Other Features
- Reduce poverty level from 38% to 25%
- The industrial growth rate showed at 7.9%
Twelfth Five Year plan 2012-2017
Objectives
- Infrastructure, Health, education
- The government declared to achieve a growth rate of 8.2%
- To achieve this 4% agriculture growth and 10% industrial growth required
- Faster, Sustainable and more inclusive growth
The new government in 2014 announced the dissolution of the Planning Commission. It was replaced with the NITI Aayog. 12th five-year plan would be called the last five-year plan of India.
Niti Aayog launched a three-year action plan from April 1, 2017.