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PLANNING:
Ø Primary Sector: Agriculture, Forest, Fisheries,
Mining
Ø Secondary Sector: Industries (Manufacturing and
Construction)
Ø Tertiary Sector: Services (Trade, Transport,
Communications, Banking,
Insurance, Real estate etc)
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PLANNING:
ü
ü Planning
is a series of steps that are adopted to achieve a goal.
ü So
a plan aims at reaching the goal.
ü No
goal – No Planning.
PLANNING IN INDIA:
ü During
1930’s a great economic depression took place throughout the World. The only
exception was USSR. This success was exhibited by the planned economy of USSR.
Then the concept of planning attracted the attention of the world.
ü In
the year 1934 M.Visvesvaraya wrote “Planned Economy for India” This is the
first systematic work contemplating a planned economy for India.
ü In
the year 1938 Indian National Congress (INC) set up National Planning
Committee.
ü In
1943 few industrialists from Bombay presented Bombay Plan.
ü In
1944 The Department of Planning and Economic Development was set up by the
British Indian Government. This
department was headed by A D Dalal.
ü In
1944 M N Roy (Founder of Communist Party of India) wrote an article People’s
Plan.
ü S
M Agarwal published Gandhian Plan.
ü In
1946 the Planning Advisory Board was set up by the interim government.
ü Note:
Bombay Plan, People’s Plan and Gandhian Plan were never implemented
Why there is a need for Planning in India?
·
Large
Population
·
Low per
capita income
·
Inequality of
distribution
·
Inefficient
production
ü In India the Planning was taken up to overcome the above said
problems.
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OBJECTIVE S OF INIDAN
PLANNING:
1. To
achieve total employment
2. To
maximize the Per capita income
3. To
enhance rapid industrialization
4. To
achieve self sufficiency
5. To
reduce inequalities of income
WHAT ARE THE BASIC FEATURES OF INDIAN
PLANNING?
ü MIXED
ECONOMY: This is the co-existence of both
the Public (government) and Private sector.
ü BALANCED
GROWTH STRATEGY: Both agriculture and industrial
infrastructure are to be strengthened.
ü MINIMIZING
FOREIGN ASSISTANCE: this is in terms of
both aid and transfer of technology.
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What India did?
India established Planning Commission
and National Development Council.
Planning Commission:
ü In
the year 1950 Planning Commission was set up.
ü Planning
Commission was set up on the recommendation of Planning Advisory Board.
ü Planning
Commission was established through Cabinet Resolution.
ü What is
cabinet resolution? This is a decision
taken by the Cabinet.
ü The
Prime Minister is the ex-officio chairman of the Planning Commission. This
means whoever is the PM, acts as the Chairman of Planning Commission.
ü The
Planning Commission prepares the draft of the five year plans.
Note:
Planning Commission is not a Constitutional body. It means this is not
mentioned in the Constitution of India.
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NATIONAL DEVELOPMENT COUNCIL (NDC)
ü NDC
was set up in the year 1952.
ü NDC
was set up on the recommendation of Planning Commission.
ü The
Prime Minister is the Chairman of NDC.
ü The
NDC is the final approval body for the five year plans.
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FIVE YEAR PLANS IN INDIA:
First plan (April 1, 1951 to March 31,
1956):
ü Main
architect was KN raj (passed away in February, 2010).
ü Agriculture,
Irrigation and power projects were given top priority.
ü Agriculture
with 31% of outlay got the highest priority.
ü Industry
was with 4%. Of outlay
ü The
production of food grains increased by 20 percent
ü With
the success of agriculture, the prices level fell down and food prices were
declined
ü The
CDP (Community Development Programme) was launched in the year 1952 to bring
about all round development of rural areas with a special emphasis on
agriculture.
ü It
was a great success and the targets were achieved.
ü But
during the first plan limited attention was paid to the social objectives.
ü The
industrial sector was neglected.
ü Locomotive
factory (Chittaranjan), Fertilizer factory (Sindri), Indian Telephone Industry
(Bangalore) were set up during 1st plan.
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SECOND FIVE YEAR PLAN
(APRIL 1, 1956 TO MARCH 31, 1961):
ü The
architect of the second five year plan was P C Mahalanobis.
ü Since
the agriculture was a great success during the first plan, the emphasis was
laid on industries during the second plan.
ü Note:
Industry was given priority during the second plan.
ü Industries
were given high priority with 20.1 % of the outlay.
ü Transport
and communications which were given priority during 1st plan
continued to get the priority.
ü Steel
plants at (Bhilai(MP), Rourkela (Odisha) and Durgapur (West Bengal) were set
up.
ü Heavy
engineering plant Ranchi, Lignite Corporation (Neyveli), Integral coach factory
at Perumbudur were set up.
ü The
main objectives of the second plan were
·
Rapid industrialization
·
Rapid increase in the
National income
·
Massive expansion of
the employment opportunities
·
Reduction in
inequalities of income and wealth
ü The
targets were not achieved but a firm foundation was for the industrialization
was laid in the country.
ü As
the 2nd plan gave priority to the industry and neglected the
agriculture sector, it led to the Balance of payments problem.
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THIRD PLAN (APRIL 1, 1961-
MARCH 31, 1966):
ü Emphasis
on basic industries continued but agriculture was also given the priority.
ü The
Performance during this period was very poor.
ü The
reasons for poor performance can be attributed to
·
Chinese aggression in
the year 1962
·
Indo-Pak war in the
year 1965
·
Failure of monsoons,
particularly during 1965-66.
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ANNUAL PLANS: (1966-69):
ü The
annual plan is also called plan
holiday.
ü There
were 3 annual plans
·
April 1, 1966 to March
31, 1967
·
April 1, 1967 to March
31, 1968
·
April 1, 1968 to March
31, 1969
ü The
planning process during the 3rd plan was affected seriously because
of wars and famine.
ü Hence
the 5 year plan was given up till the economic normalcy is restored.
ü Green
revolution was initiated in the country.
ü HYV
(High Yielding Variety) seeds were introduced.
ü As
the supply of food grains increased the food prices came down and the economic
stability was restored.
ü Nationalization
of banks was a major step during this period.
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FOURTH PLAN (APRIL 1, 1969
– MARCH 31, 1974):
ü Emphasis
was on growth with justice.
ü Agriculture
and allied sectors were given priority.
ü The
achievements fell short of the targets.
ü The
4th plan was not a success.
ü The
reasons for the poor performance can be
·
Instability of the
prices
·
Indo-Pak war in the
year 1971
·
Drought in the year
1972
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FIFTH PLAN (APRIL 1, 1974
– MARCH 31, 1979):
ü In
the year 1977 the Janata Party came to the power.
ü The
5th plan was terminated on March 31, 1978 ahead of the schedule.
ü The
Janata Part introduced rolling plan.
ü Poverty
eradication was given the highest priority.
ü Attainment
of self reliance was given importance.
ü A
National level programme of minimum needs was introduced.
ü The
Minimum needs programme covered
·
elementary education
·
safe drinking water
·
health care
·
shelter for landless
·
nutrition, rural roads
·
rural electrification
·
slum development.
ü Janata
party government terminated this programme.
ü PDS
(Public Distribution System) was introduced during this period.
ü There
was a severe inflation during this period and led to the bad performance of the
plan.
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ROLLING PLAN (APRIL 1, 1978 –
MARCH 31, 1980):
ü The
5th plan was terminated in the year 1978.
ü This
rolling plan gave priority to the rural development.
ü Note:
In Rolling Plan the plan is revised at the end of every year for the next 4
years along with the formulation of a plan for the 5th year.
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SIXTH PLAN (APRIL 1, 1980
– MARCH 31, 1985):
ü Energy
was given the highest priority with 27.9%.
ü Agriculture
was given the second priority.
ü The
percentage of the people from BPL (Below Poverty Line) came down.
ü There
was a positive performance in the oil sector.
ü The
food grain production also increased considerably during this plan.
ü The
6th plan was a success.
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SEVENTH PLAN (APRIL 1,
1985 – MARCH 31, 1990):
ü Priority
was given to the productive employment and energy.
ü Agriculture
was given the next priority.
ü Industrial
sickness occurred in small sector.
ü The
7th plan was a success as it exceeded the growth rate of 5.0 percent
and reached 5.5 percent.
ü A
record level of food production of 172 million tonnes was achieved.
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ANNUAL PLAN OR PLAN HOLIDY
ü 1990
-92 was the plan holiday.
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EIGHTH PLAN (APRIL 1,
1992-MARCH 31, 1997):
ü Human
resources was given the top priority and called human face element of
adjustment.
ü Alleviating
(removal) poverty and removing Unemployment was stressed.
ü Since
the Human development is not possible without economic growth priority was
given to energy, transport and communication.
ü The
GDP (Gross Domestic Rate) target was 5.6 percent, but, achieved 6.54 percent.
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NINTH PLAN (APRIL 1, 1997
– MARCH 31, 2002):
ü Growth
with social justice and equality was given the priority.
ü Agriculture
and rural development were given importance.
ü During
this period the Planning Commission suggested that the subsidies should not
exceed Rs. 72, 800 crore in the 9th plan period.
ü The
plan was not a success.
ü The
poor state of infrastructure is the most pressing constraint for growth.
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TENTH PLAN (APRIL 1, 2002
–MARCH 31, 2007):
ü Doubling
the per capita income in 10 years
ü Reduction
of BPL from 26% to 21% by 2007.
ELEVENTH PLAN (APRIL 1,
2007 – MARCH 31, 2012):
ü The
theme is “towards faster and more inclusive growth”.
ü The
target is to achieve 9% growth.
ü Highest
priority was given to education.
ü Rural
development, agriculture, irrigation and health were given priority.
ü Accordingly
government decided to set up 30 new central universities, 8 new IITs, 7 IIMs by
2012.
ü Increasing
literacy rate to 80%
ü Reducing
IMR (Infant Mortality Rate) to 28/1000
ü Reducing
MMR(Maternal Mortality Rate) to 1/1000
ü Providing
safe drinking water to all by 2009
ü To
improve sex ratio to 950 by 2016
ü Broadband
connectivity to all villages by 2012
ü Telecommunications
to all villages by 2009
ü Electricity
to all villages by 2009
ü Roads
to all villages by 2009
ü PRI’s
(Panchayati Raj Institutions) to be given priority as India is the only country
which has so many women elected representatives.
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TWELFTH FIVE YEAR PLAN
(APRIL 1, 2012 – MARCH 31, 2012):
ü The
draft is approved by the NDC.
ü The
theme of the 12th plan is ‘Faster, sustainable and more inclusive
growth”.
ü In
August 2011 the DC of PC announced that the
·
Health care
·
Education
·
Skill development – highest
priority.
·
Environment
·
Natural resources
·
Infrastructure
development
ü The
proposed target is 9 (later reduced to 8.2 and finally to 8) percent growth
rate.
ü The
NDC approved the 12th plan on December 27, 2012
ü NDC
approved to achieve growth rate of 8 percent.
ü To
generate 50 million jobs and to increase investment in infrastructure
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