Planning in India
| Plan | Objective/Features | Assessment |
| First (1951- 56) | Rehabilitation of refugees, rapid agricultural development so as to achieve food self-sufficiency in the shortest possible time and control of inflation | Targets and objectives more or less achieved. |
| Second (1956-61) | ‘rapid industrialisation with particular emphasis on the development of basic and heavy industries’ To give a big push to the economy so that it enters the take-off stage. Nehru-Mahalanobis model was adopted. Industrial Policy of 1956 accepted the establishment of a socialistic pattern of society as the goal of economic policy. | Could not be implemented fully due to shortage of foreign exchange. Targets had to be pruned. |
| Third (1961-66) | ‘establishment of a self-reliant and self-generating economy’ | Failure. Wars and droughts. |
| Fourth (1969-74) | ‘growth with stability’ and progressive achievement of self-reliance’ Garibi Hatao Target: 5.5 pc | Was ambitious. Big failure. Achieved growth of 3.5 pc. Inflation. |
| Fifth (1974-79) | ‘removal of poverty and attainment of self-reliance’ | High inflation. Was terminated by the Janta govt. |
| Sixth (1980-85) | ‘direct attack on the problem of poverty by creating conditions of an expanding economy’ | Most targets achieved. Growth: 5.5 pc |
| Seventh (1985-1990) | Emphasis on policies and programmes which would accelerate the growth in foodgrains production, increase employment opportunities and raise productivity | Success. Growth: 6 pc |
| Eighth (1992-97) | ||
| Ninth (1997-2002) | Growth with social justice and equality |
- On the eve of independence India was largely a agrarian economy
- 70 pc of the workforce was engaged in agriculture; 50 pc of national income from it.
- To set India on a high economic growth path it was realised that savings need to be increased and it needs to be translated into investment.
- Hence, the focus of Indian planning was to direct public investment in the area of infrastructure, agriculture and industrial development
- While agriculture and infrastructure received main focus in the first FYP, industrial development was to preoccupy Indian planning process second plan onwards
- This was mainly because India was operating as, more or less, a closed economy. In such a situation, the capital 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
