5-year plans- Overview, Outline, Planning Process, Origin

In this article, we will be giving you complete information regarding the planning process in India and why it is important for the socio-economic growth of our country. Five Year Plans (FYPs) are national economic initiatives that are streamlined and coordinated. Under the socialist influence of India’s first Prime Minister Jawaharlal Nehru, India established its first FYP in 1951 shortly after Independence. The Indian economy was built on the concept of planning from 1947 to 2017. This was established, implemented, and monitored by the;

• Planning Commission (1951-2014) and,
• NITI Aayog’s Five-Year Plans (2015-2017)

Planning Process In India

Planning in India is a transparent process. Much of the debate and controversy surrounding the preparation of the plan is open to the public. The original estimates and assumptions are either publicly stated or easily deduced, and the planners are sensitive to and receptive to criticism and ideas from a wide range of national and international sources. Plan making in India has evolved as a responsive democratic political process, from initial formulation to subsequent amendments to parliamentary presentation.

Origin Of 5-year Plans:

India’s planned economic development began in 1951 with the establishment of the First Five Year Plan but its theoretical efforts began much earlier, even before independence. The main advances in this direction were:

•  Establishment of the National Planning Committee in 1938 by the Indian National Congress
• Bombay Plan and Gandhian Plan in 1944
•  Peoples Plan in 1945
• Jaiprakash Narayan’s Sarvodaya Plan in 1950

The procedure of FYP began with the establishment of the Planning Commission in March 1950. Through this plan, the government aimed to promote a rapid rise in the people’s standard of living by:

•  Efficient Utilization of the country’s resources
•  Increased production
• Providing employment opportunities

Overview Of 5-Year Plans In India

The first Five-Year Plan was started in 1951, and two more five-year plans were developed until 1965 when the Indo-Pakistan Conflict forced a pause. After that, the planning process came to a halt due to:

•  Drought in two consecutive years
•  currency depreciation
•  a general rise in costs
•  resource erosion 

The fourth Five-year plan began in 1969, after three Annual Plans between 1966 and 1969.  Due to the rapidly changing political situation at the Centre, the Eighth Plan was not able to start in 1990, and the years 1990-91 and 1991-92 were considered as Annual Plans. After the implementation of structural adjustment programs, the Eighth Plan was fully launched in 1992. The main focus of the first eight Plans was on public sector growth with huge financing in primary and heavy industries but the starting of the Ninth Plan in 1997, the focus on the public sector was reduced, and planning strategy in the country became more indicative. 

Outline Of 5-Year Plans: 

Plans	Time Period	Target Growth	Actual Growth
First Plan	1951-1956	2.1%	3.6%
Second Plan	1956-1961	4.5%	4.3%
Third Plan	1961-1966	5.6%	2.8%
Fourth Plan	1969-1974	5.7%	3.3%
Fifth Plan	1974-1979	4.4%	4.8%
Sixth Plan	1980-1985	5.2%	5.7%
Seventh Plan	1985-1990	5.0%	6.0%
Eighth Plan	1992-1997	5.6%	6.8%
Ninth Plan	1997-2002	6.5%	5.4%
Tenth Plan	2002-2007	8.0%	7.6%
Eleventh Plan	2007-2012	9.0%	8.0%
Twelfth Plan	2012-2017	8.0%

Major Key Points Of 5-Year Plans

First Five Year Plan:

It was established under the leadership of Jawaharlal Nehru from 1951 to 1956. With a few tweaks, it was based on the Harrod-Domar model. Its main focus was on the country’s agricultural development. This strategy worked well, with a 3.6 percent growth rate. Five IITs were established in the country as a result of this initiative.

Second Five Year Plan:

Jawaharlal Nehru was the leader of this project, which lasted from 1956 until 1961. It was created using the P.C. Mahalanobis Model from 1953. Its main focus was on the country’s industrial development. Many experts questioned this strategy, and India experienced a payment problem in 1957 as a result.

Third Five Year Plan:

 Under Jawaharlal Nehru’s leadership, it was created between 1961 and 1966. This plan is also known as the ‘Gadgil Yojna,’ after D.R. Gadgil, the Deputy Chairman of the Planning Commission. The plan’s principal goal was to make the economy self-sufficient. Agriculture was emphasized, as was the improvement in wheat production. India was involved in two conflicts during  this plan:

•  Sino-India war (1962)
•  Indo-Pakistani war (1965)

Due to warfare and famine, the idea failed miserably.

Fourth Five Year Plan:

 Under the leadership of Indira Gandhi, it lasted from 1969 until 1974. This strategy had two key objectives: 

• Expansion with stability 
• Gradual self-sufficiency

Fourteen major Indian banks were nationalized during this time, and the Green Revolution began. The 1971 Indo-Pakistani War and the Bangladesh Liberation War occurred. One of the Plan’s key goals was to implement Family Planning Programs.

Fifth Five Year Plan:

It lasted from 1974 to 1978. The main priorities of this plan were:

• Garibi Hatao
• Employment
• Agricultural productivity

In 1975, the Electricity Supply Act was revised, the Minimum Needs Programme (MNP) was established, and the Indian National Highway System was established. The freshly elected Moraji Desai government put an end to the scheme in 1978.

Sixth Five Year Plan:

Under the reign of Indira Gandhi, it lasted from 1980 until 1985. This plan’s main goal was to achieve economic liberalization by:

• Reducing poverty
• Establishing technological independence.

 It was founded on Yojna investment, infrastructure changes, and a growth model trend.

Seventh Five Year Plan:

 It lasted from 1985 to 1990, and Rajiv Gandhi was the prime minister during that time. The major aim of this plan was:

• Creation of a self-sufficient economy
• Possibilities for gainful employment
•  Technological advancement 

 With a focus on ‘food, work, and productivity,’ the Plan attempted to increase foodgrain output, increase employment opportunities, and raise productivity. The private sector was given precedence over the public sector for the first time.

Eighth Five Year Plan:

Under the leadership of P.V. Narasimha Rao, it lasted from 1992 to 1997. The development of human resources, such as employment, education, and public health, was given primary attention in this plan. The main economic outcomes throughout the eighth plan period were:

• Rapid economic growth
• Significant growth in the agriculture 
• The rise in exports and imports
• Improvement in trade 

Ninth Five Year Plan:

 Under the leadership of Atal Bihari Vajpayee, it lasted from 1997 to 2002. “Growth with Social Justice and Equality” was the plan’s key goal. It was launched to commemorate India’s 50th year of independence.

Tenth Five Year Plan:

It lasted from 2002 to 2007, with Atal Bihari Vajpayee and Manmohan Singh as its leaders. In the next ten years, this plan aimed to double India’s per capita income. It also sought to bring the poverty rate down to 15% by 2012.

Eleventh Five Year Plan:

 It lasted from 2007 to 2012, and Manmohan Singh was the prime minister during that time. It was led by C. Rangarajan. The main focus of the conference was “rapid and more inclusive growth.” 

Twelfth Five Year Plan:

It lasted from 2012 to 2017, with Manmohan Singh as its head. “Faster, more inclusive, and sustainable growth” is the key subject. It aimed for an annual growth rate of 8%.

Final Words

For a long time, there had been a notion that centralized planning, with its one-size-fits-all approach, could not last long in a large country like India. Finally, the Narendra Modi-led NDA administration abolished the Five-Year Plans in 2015. As a result, India’s 12th five-year plan is regarded as its final five-year plan. From April 1, 2017, the Niti Aayog, which succeeded the Planning Commission in the Modi Cabinet, has been launching three-year action plans.

Five Years Plan: FAQs

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