Government of Tamilnadu

Department of Employment and Training

Course : TNPSC Group II Exam

Subject : Indian Economy
Topic : Five Year Plan Models an Assessment

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Department of Employment and Training.
 FIVE YEAR PLAN
MODELS AN ASSESSMENT
I. IMPORTANT FEATURES OF  This plan was based on socialistic
THE VARIOUS FIVE-YEAR pattern of society Increase the
PLANS National Income by 4.27% per
Ist Five – Year Plan: annum Capital output ratio was 2:1
 The first plan was launched on  Iron and steel Plants at Bhilai,
April 1, 1951 Durgapur and Rourkela were
 Duration : April 1, 1951 to 31st established during this time.
March 1956  Research Institute like Tata
 It is based on the Harrod Domar Institute of Fundamental Research
Model and Atomic Energy commission of
 Agriculture was the main priority India was established.
 National income was 3.6% (it was
IIIrd Five Year Plan:
targeted at 2.1%)
 Duration : April 1, 1961 to 31st
 The per capita income growth rate
March 1966.
was 1.8%
 Aim : Push the economy up to the
 Dams like Bhakra, Hirakud,
take off stage of development
Mettur Dam and Damodar Valley
 Objective: Securing a marked
are initiated during this time.
advancement towards self-
sustaining growth.
IInd Five Year Plan:
 National income was only at 2.5%
 Duration (April 1, 1956 to 31st
and it was targeted at 5.0% per
March 1961)
annum.
 It was based on Mahalonobis
 Per capita income was only 0.2%
model
per annum.
 Objective : Initiate and accelerate
 Third plan was a failure.
the process of industrialization
 Plan Holiday

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 FYPMAA

 As there was no regular planning  Slogan! Garibi Hatao

for the period between 1966 to  This plan closed one year prior to
1969, this period is termed as ‘Plan its schedule date.
Holiday’ in 1966 drought after.  This plan followed the path of
export promotion and import
Green Revolution substitution.
 It refers to period of time when  Minimum needs programme.
agriculture in India changed to an  Target was to achieve general
industrial system due to the growth of 5.0% per annum in
adoption of modern methods and national income.
technology such as Hw seeds,  Janata Government ended the 5th
Tractors etc. Plan and introduced a new plan
called Rolling Plan between
IVth Five Year Plan: 1978-1980. Rolling Plan is a
 Duration : 1st April, 1969 to 31st variant of short term plan.
March 1974.
VIth Five Year Plan :
 Aim : Growth with stability and
 Duration : April 1, 1980 to 31st
progress towards self – reliance.
march, 1985.
 To ensure the growth rate of 5.7%
 In 1980 the 6th plan prepared by
per annum for economic
Janata Government was
development of the country.
abandoned by the Congress
 The annual growth rate in
Government. A new plan was
industrial production was only
started.
4.0% per annum, which was below
 Aim : Poverty and unemployment
the target.
reduction.
 Objective: Qualitative
Vth Five Year Plan:
improvement in the living
 Duration : April 1, 1974 to 31st
standards of people by means of
March, 1978.
minimum need programme.
 Aim : Poverty alleviation and self
reliance

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 FYPMAA

 The targeted growth rate was 5.2%

IXth Five Year Plan:
per annum.
 Duration : April 1, 1997 to 31st
 The actual attained growth rate
March 2002.
was 5.3% per annum.
 Aim : Growth with equity and
VIIth Five Year Plan: distributive social justice.
 Duration : April 1st, 1985 to 31st  To create employment and ensure
March, 1990. food security
 Aim : Growth, modernization, self-  Basic Minimum Service
reliance and social justice.  To control population growth
 Increased employment  The annual growth rate of total
opportunity GDP at factor cost was 5.5%.
 Targeted growth rate was 5.0% per
annum Xth Five Year Plan:
 Actual growth rate of the N.I. was  Duration : April 1, 2002 to 31st
5.9% March 2007.
 The growth rate of per capita  Reduction of poverty ratio to 20%
income was 3.7%.  Universal access to primary
 Annual plan (1990-91, 1991-92) education
New Industrial Policy – 1991  Compulsory elementary education
initiated. (SSA 2002).
VIIIth Five Year Plan:  Reduction in the decadal rate of
 Duration : April 1, 1992 to 31st population growth between 2001
march, 1997. and 2011 to 16.2%
 Aim : Human Development in  Increase in the literacy rate to 72%
various aspects. by 2007
 Target : Full employment by the  Reduction of IMR to 45
end of this century.  Reduction of MMR to 2 per 1000
 The annual growth rate in 8th plan live births
was targeted to be 5.6% however,  Increase in the forest and trees
the annual growth rate of NNP at cover to 25%
factor cost was estimated at 6.7%.  Cleaning all major polluted rivers
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 FYPMAA

 Domestic saving rate : 26.84% (of 2. Farm sector growth to be

GDP) increased to 4 percent from 2.13%
 Current Account Deficit : 1.57% (of in X plan.
GDP) 3. Create 7 crore new jobs.
 Investment Rate : 28.141% (of 4. Reduce educated unemployment
GDP) rate to below 5%.
 Incremental Capital Output Ratio 5. Reduce dropout rate of school
(ICOR) actual 4.3 children to 20% from 52% now
 GDP Growth Rate : 7.6% 6. Literacy rate to be increased to
80%.
XIth Five Year Plan (Described as
7. Infant mortality rate to be
National Educational Plan)
reduced to 28 per 1,000 births.
 Planning Commission on October
8. Maternal mortality rate to be cut
19, 2006 approved the Approach
to 1 per 1,000 births.
Paper of the 11th Plan (2007-2012),
9. Clean drinking water to all by
which proposes a target of 9%
2009.
yearly growth rate during the plan
10. Improve sex ratio to 935 by 2011-
and also set a 10% economic
12 and 950 by 2016-17.
growth by the end of the plan (i.e.
11. Electricity connection to all by
by 2012).
2009.
 Agriculture occupies a special
12. A telephone in every village by
treatment in the XI Plan approach
November 2007.
paper.
13. Broadband connectivity to all
 It aims to achieve 4% growth from
villages by 2011-12.
the X Plan growth of less than 2%.
14. Roads to all villages with 1,000
XI plan is described as ‘A National
population by 2009.
Education Plan’.
15. Increase forest cover and tree
Targets for XIth Plan
cover by 5 percent.
1. GDP growth rate to be increased
16. Achieve WHO standard air
to 10 percent by the end of the
quality in major cites by 2011-12.
plan.

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 FYPMAA

17. Treat all urban wastewater by sector and provide skill certification
2011-12 to clear rivers. to equivalent numbers during the
18. Double per capital income by Twelfth Five Year Plan.
2016-17.
Education
19. Saving rate 34.8%
 Mean years of schooling to increase
20. Investment rate 36.7%
to seven years by the end of Twelfth
XII th Year Plan (2012-2017) Five Year Plan.
 The Twelfth Plan is titled “Faster,  Enhance access to higher education
more inclusive and sustainable by creating two million additional
growth”. The plan came into seats in higher level institutions.
operation after being approved by  Eliminate gender and social gap in
the NDC on December 27, 2012. school enrolment (that is, between
Targets under Twelfth Plan girls and boys and between SCs,
Economic Growth STs, Muslims and the rest of the
 Real GDP Growth Rate of 8.2% population) by the end of Twelfth
 Agriculture Growth Rate of 4.0% Five Year Plan.
 Manufacturing Growth Rate of
Health
10.0%
 Reduce IMR to 25 and MMR to 1
 Every state must have a higher
per 1000 live births and improve
average growth rate in the Twelfth
Child Sex Ratio (0-6 years), to 950
Plan than that achieved in the
by the end of the Twelfth Five Year
Eleventh Plan.
Plan.
Poverty and employment  Reduce Total Fertility Rate to 2.1 by
 Head-count ratio of consumption the end of Twelfth Five Year Plan.
poverty to be reduced by 10  Reduce under-nutrition among
percentage points over the children aged 0-3 years to half of
preceding estimates by the end of the National Family Health Survey-
Twelfth Five Year Plan. 3 levels by the end of Twelfth Five
 Generate 50 million new work Year Plan.
opportunities in the non-farm

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 FYPMAA

Infrastructure, including Rural achieve the Nirmal Gram Status by

Infrastructure the end of Twelfth Five Year Plan.
 Increase investment in Environment and Sustainability
infrastructure as a percentage of  Increase green cover (as measured
GDP to 9% by the end of Twelfth by satellite imagery) by 1 million
Five Year Plan. hectare every year during the
 Increase the Gross Irrigated Area Twelfth Five Year Plan.
from 90 million hectare to 103  Add 30000 MW of renewable
million hectare by the end of energy capacity in the Twelfth Plan.
Twelfth Five Year Plan.  Reduce emission intensity of GDP
 Provide electricity to all villages by in line with the target of 20% to
the end of Twelfth Five Year Plan. 25% reduction by 2020 over 2005
 Connect all villages with all-weather levels.
roads by the end of Twelfth Five
Year Plan. Service Delivery
 Upgrade national and state  Provide access to banking services
highways to the minimum two-lane to 90% Indian households by the
standard by the end of Twelfth Five end of Twelfth Five Year Plan.
Year Plan.  Major subsidies and Welfare related
 Complete Eastern and Western beneficiary payments to be shifted
Dedicated Freight Corridors by the to a direct cash transfer by the end
end of Twelfth Five Year Plan. of the Twelfth Five Year Plan, using
 Increase rural tele-density to 70% the Aadhar Platform with linked
by the end of Twelfth Five Year bank accounts.
Plan.
 Ensure 50% of rural population has
Sixth Five year plan
access to 55 Litres Per Capita per (1980-85) marked the beginning
Day piped drinking water supply of economic liberalisation.
and 50% of Gram Panchayats,

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 FYPMAA

FIVE YEAR PLANS AND GROWTH PERFORMANCE

Target
Five Year Plan Period growth rate Achievement Model
of GDP (In % age)
(In % age)
First Plan 1951-56 2.1 3.6 Harrod-Domar Model
Second Plan 1956-61 4.5 4.21 Prof. P.C. Mahalanobis
Third Plan 1961-66 5.6 2.72 Sukhmoy Chakraborty
and Prof. Saddy
Fourth Plan 1969-74 5.7 2.05 Ashok Rudra and Alon S.
Manney
Fifth Plan 1974-79 4.4 4.83 A like fourth Five – Year
Plan, which is called
Investment Model of
Planning Commission,
D.D.Dhar.
Sixth Plan 1980-85 5.2 5.54 Based on investment
Yojana Infrastructural
changing and trend to
growth model
Seventh Plan 1985-90 5.0 6.02 A Like Six Five-Year plan
prepared by Pranav
Mukherjee
Eighth Plan 1992-97 5.6 6.68 John W. Miller Model
Ninth Plan 1997-02 6.5 5.5 Created by ‘Planning
Commission’
Tenth Plan 2002-07 8.0 7.7 -do-
Eleventh Plan 2007-12 9.0 8 Prepared by Prof. C.
Rangarajan
Twelfth Plan 2012-17 8% --- Prepared by Planning
Commission

 Sindhusree Kullar is the first CEO of NITI Aayog.

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 FYPMAA

Drawbacks of Planning  1.35 billion Population of the

Commission
country to have better living
 1 Plan was successful
st

standard by 2020.
 2nd Plan was successful
 Per capital income to get doubled by
 3rd Plan was failure
2020.
 4th Plan was failure
 Environment situation to remain as
 5th Plan was successful
unbalanced as present.
 6th, 7th, 8th Plan was successful
 With 2% annual employment
 9th, 10th, 11th Plan was successful
generation rate, 20 Crore new
 So we had drawbacks on 3rd, 4th,
employment opportunities to be
9th, 10th and 11th plans only
created by 2020.
 Employment share in agriculture to
II. INDIA VISION – 2020 come down from present 56 to 40 %
 Planning Commission had by 2020.
released India Vision – 2020  Unorganized sector to create more
on January 23, 2003. additional employment
 Which represents pre-assessment opportunities.
of the progress of Indian Economy  Urban population percentage to get
for the next two decades. increased from existing 25% to 40%
Mr. Shyam Prasad Gupta, a
member of planning commission,
prepared this document.
The Salient points of the document
are :
 The expected annual growth rate by
2020 to be 9%
 Elimination of unemployment,
illiteracy and poverty by 2020

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