Five – Year Plans in India – A Brief Overview

First Five – Year Plan (1951 -56)

It was based on Harrod – Domar Model.

Community Development Programme launched in 1952.

Focus on agriculture, price stability, power and transport.

It was a successful plan primarily because of good harvests in the last two years of the plan.

National income went up by 18% and per capita income by 11%.

Second Five – Year Plan (1956 - 61)

Target Growth :- 4.5% while actual Growth :- 4.27%.

Also called Mahalanobis Plan named after the well – known economist.

Focus – rapid industrialisation.

Advocated huge imports through foreign loans.

Shifted basic emphasis from agriculture to industry far too soon.

During this plan, prices increased by 30%, against a decline of 13% during the First Plan.

Third Five – Year Plan (1961 - 66)

Target Growth :- 5.6% while actual Growth :- 2.84%.

At its conception, it was felt that Indian economy has entered a take – off stage. Therefore, its aim was to make India a “Self- reliant” and “self – generating” economy.

Based on the experience of first two plan, agriculture was given top priority to support the exports and industry.

Complete failure in reaching the targets due to unforeseen events – Chinese aggression (1962), Indo – Pak war (1965), severe drought 1965 – 66.

Three Annual Plans (1966 -69) Plan holiday for 3 years.

Prevailing crisis in agriculture and serious food shortage necessitated the emphasis on agriculture during the Annual Plans.

During these plans a whole new agricultural strategy was implemented. It involved wide – spread distribution of high – yielding varieties of seeds, extensive use of fertilisers, exploitation of irrigation potential and soil conservation.

During the Annual Plans, the economy absorbed the shocks generated during the Third Plan.

It paved the path for the planned growth ahead.

Fourth Five – Year Plan (1969 - 74)

Target Growth :- 5.7% while actual Growth :- 3.30%.

Main emphasis was on growth rate of agriculture to enable other sectors to move forward.

First two years 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.

Fifth Five – Year Plan (1974 - 79)

Target Growth :- 4.4% while actual Growth :- 3.8%.

The fifth plan was prepared and launched by D.D. Dhar.

It proposed to achieve two main objectives: “Removal of Poverty” (Garibi Hatao) and “attainment of self – reliance”.

Promotion of high rate of growth, better distribution of income and significant growth in the domestic rate of saving were seen as key instruments.

The plan was terminated in 1978 (instead of 1979) when Janta Party Government rose to power.

Rolling Plan (1978 - 80)

There were 2 sixth Plans. Janta Government put forward a plan for 1978 – 83. However, the Government lasted for only 2 years. Congress Government returned to power in 1980 and launched a different plan.

Sixth Five – Year Plan (1980 - 85)

Target Growth :- 5.2% while actual Growth :- 5.66%.

Focus :-

Increase in national income.

Modernisation of technology.

Ensuring continuous decrease in poverty and unemployment.

Population control through family planning. Etc...