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“Five Year Plans of India”

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PLANNINGDEFINITION :

Planning is the iterative process of making

decisions about the effective tasks to achieve the

objectives

Planning is a process of determining the

objectives of administrative efforts and devising the

means calculated to achieve them.

• Millet

Planning is a process of setting formal guidelines

and constraints for the behaviour of the firm.

-Assoff and Brudinharg

Why to Plan ???

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After independence, India was in dire conditionsand needed to start acting soon

Some of the problems necessitated need for animmediate plan:Vicious circle of povertyForeign Trade Need for Rapid industrializationPopulation pressure

Development of Natural resourcesCapital Deficiency & Market imperfections

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HEALTH AND FIVE YEAR PLAN

Recognising the health as animportant contributory factor in theutilisation of manpower and in theuplifting of the economic condition ofthe country, the Planning commissiongave considerable importance of healthprogrammes in the five year plans.

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OBJECTIVES

The broad objectives of the health programmeduring five- year-plans are as follows:

Control and eradication of major communicablediseases

Strengthening of basic health services throughthe establishment of primary health centres andsub-centres,

PopulationDevelopment of health manpower resources.

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PURPOSES

For the purposes of planning ,health sectorhas been divided into the following subsectors

Water supply and sanitationControl of communicable diseasesMedical education ,training and researchMedical care including hospitals ,dispensaries

and PHCsPublic Health ServicesFamily planning andIndigenous system of medicine

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COMMUNITY DEVELOPMENT PROGRAMME

The community programme was

launched in India during 1952.

It is the process which is designed to

promote better living of whole community

,with active participation by the community

itself along with government efforts.

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First Five Year Plan(1951-1956)

Introduced by the then PM Pt. J. Nehru between the period 1951-56

The one responsible -- Planning Commission

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Objectives:Improve living standards of the people in India which was possible by making judicious use of Natural Resources.

Total outlay of this plan -- A massive Rs.`2069 CrThe segregation – Industrial sector Energy, irrigationTransport, Communications and RehabilitationsSocial servicesDevelopment of Agriculture & community

Objectives: (cont…)

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Importance was given to agriculture and irrigation; Power to decrease reliance on Food Grain, Imports & resolve Food crisis

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ACHIEVMENTS

A few things that happened …………Mettur, Hirakud & Bhakra Dams were a few projects

that were startedGovt. decides to improve Railway Services, Road

tracks & Civil Aviation, also decides to providesufficient funds to the Industrial sector & to takemeasures for the growth of SSI’s.

The growth in GDP achieved by India was 3.6% p.a.The target was ………………….2.1% p.a.

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HEALTH AND FIRST PLANPRIORITIES

Provision of water supply and sanitation

Control of malaria

Preventive health care of the rural population

through the health units and mobile units

Health services for the mother and children

Education and training and health education

Self sufficiency in drugs and equipment

Family planning and population control

Second Five Year Plan (1956-1961)

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Objectives:

To increase the national income by 25%

To make the country more industrialized

Development of the public sector

To increase employment opportunities so that every citizen gets a job

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Achievements:

Five steel mills at Bhilai, Durgapur, and Jamshedpur

Hydroelectric power projects

Production of coal increased

More Railway lines were added in the north east

Improved the living standards of the people

The large enterprises in seventeen industries were nationalized

The Tata Institute of Fundamental Research – established in 1957 as a research instituteAtomic Energy Commission -- Homi J. Bhabha (Founder, 1958)

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HEALTH AND SECOND FIVE YEAR PLAN

Establishment of institutional facilities to serve as a basis from which services could be rendered to the people locally and in surrounding territories.

Development of technical manpower through appropriate training programmes

Intensifying measures to control widely spread communicable diseases

Encouraging active campaign for environmental hygiene.Provision of family planning and other supporting services

for raising health standard of the people.

Third Five Year Plan(1961-1966)

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Objectives:

More stress to agriculture SubsidiesSufficient help

To increase the national income by 5% per annum

Making India self sufficient in food grains by increasing agricultural production

Minimizing rate of unemployment To establish equality among all the people of the country

Achievements:

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The Panchayat Organization was formed

Many primary schools were started in rural areas

State electricity boards and state secondary education boards were formed

State road transportation corporations were formed

Many cement and fertilizer plants were also built

OBJECTIVES:

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Water supply environmental sanitation [rural &

Urban]

Health care [ hospitals and dispensaries]

Control of communicable diseases

Medical education, research and training

Other services- health education, school

health, MCH, mental health, health insurance ISM

and Family planning.

HEALTH AND THIRD FIVE YEAR PLAN

Fourth Five Year Plan (1969 to 1974)

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At this time Indira Gandhi was the Prime Minister.The Govt. nationalized 19 major Indian banks.

Objectives:To reform and restructure its expenditure agenda (Defense became one major expense)

To facilitated growth in exports

To alter the socio economic structure of the society

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ANNUAL PLANS [1966-69]

The fourth FYP which was to commence

from April 1966 was postponed till 1969

due to Indo-pak war. During this

intervening period [1966-69] was

covered by Annual plans with an outplay

of Rs.6,756 crores in the public sector of

which the expenditure on health

programmes was Rs.316 crores[4.7%]

Achievements:

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Great advancement has been made with regard to India's national income

Spending on war efforts reduced industrial spending

Tested the first nuclear weapon with Smiling Buddha in 1974

Considered as one of the emerging powers

Food grains production increased to bring about self sufficiency in production

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HEALTH AND FOURTH PLAN

During this period the revised estimate of public sector outlay

was 16,774 crores of which Rs 1,156 crores [7.2%] were

allotted to health sector.

OBJECTIVES

Certain objectives of the Mudaliar Committee were the base

for the fourth FYP in relation to health. These are as follows:

To provide an effective base for health services in rural areas

by strengthening the primary health centres.

Strengthening of sub-divisional and district hospitals to

provide effective referral services for primary health centre,

and

Expansion of the medical and nursing education and training

of paramedical personnel to meet the minimum technical

manpower requirements.

Fifth Five Year Plan (1974 to 1979)

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Objectives:

To reduce social, regional, and economic disparities

Reduce poverty and to attain self sufficiency in agriculture and defense

Reducing rate of Unemployment both in Urban & Rural sectors

Encourage Self-employment

Encourage growth of Small scale industries

Prevent over population

Achievements:

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Food grain production was above 118 million tons due to the improvement of infrastructural facilities

Bombay High had shot up the commercial production of oil in India

OBJECTIVES

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Increasing accessibility of health services to rural areasCorrecting regional imbalanceFurther development of referral services by removing

deficiencies, in district and sub-divisional hospitals.Integration of health, family planning and nutrition Intensification of the control and eradication of

communicable diseases especially malaria and small pox Quantitative improvement in the education and training of

health personnel by converting unipurpose workers to multipurpose workers,

Development of referral services by providing specialists attention to common diseases in rural areas.

HEALTH AND FIFTH PLAN

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ROLLING PLAN (1978–1980)

The Janata Party government rejected

the Fifth Five-Year Plan and introduced

a new Sixth Five-Year Plan (1978-

1983). This plan was again rejected by

the Indian National

Congress government in 1980 and a

new Sixth Plan was made.

Sixth Five Year Plan (1980 to 1985)

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6th Five Yr Plan -- Known as Janata Govt. Plan

It’s Existence – Tourism industry increased, I.T sector develops!!!!!The issues – Rajiv Gandhi being the PM, & hence emphasized on Industrial DevelopmentSome agreed, but the communist groups protested

Objectives

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Family Planning concept introduced, but not forcibly

To introduce min Needs Program for the poor

Improve the Tourism Industry

Aimed for rapid Industrial Development

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ACHIEVEMENTS:

Planned GDP growth - 5.1% a year, achieved 5.4%

Speedy Industrial development

The transport and communication system also

improved

Government investments in the Indian healthcare

sector

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HEALTH AND SIXTH PLAN

Minimum needs programme, which was started during fifth

plan continued with the same objective as follows.

Elementary education

Adult education

Rural health

Rural water supply

Rural road

Rural electrification

House sites / houses for rural landless labourers,

Environmental improvement of slums

Nutrition

Seventh Five Year Plan (1985 to 1989)

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Congress comes into power

Objectives:

To upgrade the industrial sector

To generate more scope of employment

Improved facilities for Education to girls

Increase productivity of small and large scale

farmers

Achievements:

Using modern technology

Full supply of food, clothing, and shelter

Making India an Independent Economy

Anti-poverty programs

Eighth Five Year Plan (1992 to 1997)

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Objectives:

Modernization of Industrial Sector

The plan focused on technical development

Strengthening the infrastructure

Involvement of Panchayat raj, Nagarpalika, N.G.O's & people's participation

Many flawed plans & Policies were rectified in this plan. During this period India was the only lucky one to become a member of the WTO (1st Jan 1995)

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ACHIEVEMENTS:

Production of food increased from 51 million to 176.22 million

GDP shoots up to a whooping 6.3% ………..the target was 1.6%

The plan was more successful than the 7th year plan

24.4% domestic savings, it contributed 10.1% to the GDP in regards to Export Earnings

Was a plan that was more successful in meeting its objectives as compared to other plans?

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Ninth Five Year Plan (1997 to 2002)

By Planning Commission

General:

Target 6.5%!!!Achieved 5.35%

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Objectives:

To prioritize rural development

To generate adequate employment opportunity

To stabilize the prices

To ensure food & nutritional security

Encourage Women improvement

To create a liberal market for Private investment

Objectives: (cont…)

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To provide for basic infrastructural facilitiesEducationWaterHealthTransportEnergy

Achievements:

Yes!! India managed to bring together the giant power, support & effort of public, private & all level of Govt.

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STRATEGIES•Structural transformations and developments in the

Indian economy.

•New initiatives and initiation of corrective steps to

meet the challenges in the economy of the country.

•Efficient use of scarce resources to ensure rapid

growth.

•Combination of public and private support to increase

employment.

•Enhancing high rates of export to achieve self-

reliance.

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STRATEGIES (Cont..)

•Providing services like electricity,

telecommunication, railways etc.

•Special plans to empower the socially disadvantaged

classes of the country.

•Involvement and participation of Panchayati Raj

institutions/bodies and Nagar Palikas in the

development process.

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PERFORMANCE•The Ninth Five-Year Plan achieved a GDP

growth rate of 5.4% against a target of 6.5%

•The agriculture industry grew at a rate of 2.1%

against the target of 4.2%

•The industrial growth in the country was 4.5%

which was higher than that of the target of 3%

•The service industry had a growth rate of 7.8%.

An average annual growth rate of 6.7% was

reached

Tenth Five Year Plan (2002 to 2007)

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The Tenth Five Plan will cover a period from 1st April 2002 to 31st march 2007.The Tenth plan provides an opportunity at the start of the new millennium, tobuild upon the gains of the past but also to address the weakness that haveemerged. Some of the gains of the past are:

I. The growth rate of the national income has important fromaverage of about 5.7% in the eighties to an average of about6.5% in the Eighth and Ninth Plan periods making India one ofthe ten fastest growing developing countries.

II. The percentage of the population in poverty has continued todecline.

III. Population growth has decelerated below 2% for the first timein four decades.

IV. Literacy has increased from 52% in 1991 to 65% in 2001.V. Sectors such as software services and IT enabled services have

emerged as new source of strength, creating confidence aboutIndia’s potential to be competitive in the world economy.

However, there are several aspects of development whereour progress is clearly disappointing. Some of the weaknessesare:

I. The decline of unemployment is relatively high atabove 7%.

II. More than half of the children 1-5 years old in ruralareas are under nourished.

III. The girl children are suffering even more severemalnutrition.

IV. The infant morality rate has stagnated at 72 per 1000for the last several years.

V. As many as 60% of rural households and about 20% ofurban household do not have a power connection.

VI. Only 60% of urban households have taps within theirhomes.

VII. The Tenth Plan must learn from past experience. Itmust strengthen what has worked well, but it mustalso avoid repeating past failures. It is with objectivethat the tenth Five Year Plan is being drawn up as aReform Plan instead of merely having a Resource Plan.

Objectives of the Tenth Plan:

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Main objectives of the tenth plan are:

Rate of growth of national incomeGrowth rate of per capita incomeImprovement in Quality of life Reduction in povertyProvision of gainful employmentProvision of universal educationReduction in gender gaps Reduction in growth of populationIncreases in Literacy RateReduction in Infant Mortality RateReduction in Material Mortality Ratio (MMR)Environmental ProtectionProvision of Drinking WaterGrowth, Equity and SustainabilityBalanced Developed in all States

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Strategy of the Tenth Plan:

1. Acceleration2. Redefining the Role of Government3. Agricultural Development4. Employment5. Social Safety6. Environment Conservation7. Competitive

Eleventh Five Year Plan (2007-2012)

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Introduction:

The National Development Council has approved the11th Five Year Plan for the period from 2007 to 2012.The plan document is entitled “Towards Faster andMore Inclusive Growth”.

Infrastructure• Roads• Ports• Airports• Railways• Power• Irrigation• Telecom/IT

EducationYouth AffairsSports and Physical EducationHealth

Objectives/Targets of plan:

Women and ChildrenIncome and PovertyEnvironment

Strategy of 11th Plan:

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The main elements of strategy of 11th Plan are:1. Rapid Growth2. Inclusive Growth3. Main Priority Areas4. Main Focus on Private Sector

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Main Areas of 11th Plan:

Main areas of 11th plan are as follows:1. Agriculture2. InfrastructureHighwaysAirportsRailwaysPower Generation

3. Rural Infrastructure: Specific Targets of Bharat NirmanProgramme for the Period (2005-2009)IrrigationRural RoadsRural HousingRural WaterRural ElectrificationRural Telephone

4. Industry5. Employment6. Education7. Health8. Social Sector

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Assessment of Economic Planning in India:

o Achievements:

1. Increase in National Income2. Increase in Per Capita Income3. Increase in the Rate of Capital

Formation4. Development of Agriculture5. Industrial Development6. Infrastructure Development7. Generation of Employment8. Development of Social Services

Life ExpectancyDeath RateEducationHealth

9. Self-Reliance10. Structural and Institutional Changes

o Failures:

The major failures of economic planning are as follows:1. No Substantial Increase in

the Standard of Living2. Increase in Unemployment3. Inequality in Distribution of

Income and Wealth4. More Ambitious5. Paradox of Saving and

Investment6. Predominance of Welfare

Considerations7. Less Growth in Productive

Sector

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TWELFTH FIVE YEAR PLAN

•The government on 4th October approved the

12th five year plan (2012-17) that set average

growth target at 8.2 percent.

•The theme of the Approach Paper is

“Faster, Sustainable and more inclusive

growth” .

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OBJECTIVESBasic objective : Faster, More Inclusive, and

Sustainable Growth.

Could aim at 9.0 to 9.5 percent

For growth to be more inclusive we need: Better

performance in agriculture

Faster creation of jobs, especially in

manufacturing

Stronger efforts at health, education and

Infrastructure.

Special plans for disadvantaged/backward

regions

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STRATEGIC CHALLENGESBased on an intensive process within the

Commission, following "Twelve Strategy

Challenges" have been identified

1. Enhancing the Capacity for Growth

2. Enhancing Skills and Faster Generation of

Employment

3. Managing the Environment

4. Markets for Efficiency and Inclusion

5. Decentralization, Empowerment and

Information

6. Technology and Innovation

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STRATEGIC CHALLENGES (Cont…)

7. Securing the Energy Future for India

8. Accelerated Development of Transport

Infrastructure

9. Rural Transformation and Sustained Growth

of Agriculture

10. Managing Urbanization

11. Improved Access to Quality Education

12. Better Preventive and Curative Health Care

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Target at least 4% growth for agriculture.

Cereals are on target for 1.5 to 2% growth.

Land and water are the critical constraints.

Technology must focus on land productivity and

water use efficiency.

Farmers need better functioning markets for both

outputs and inputs. Also, better rural

infrastructure, including storage and food

processing

States must act to modify APMC Act/Rules,

modernize land records and enable properly

recorded land lease markets.

AGRICULTURE

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• Investment and capacity additions are critical for

sustained industrial growth.

• Need to grow at 11-12% per year to create 2 million

additional jobs per year. Growth in 11th Plan is in 8%.

• Indian industry must develop greater domestic value

addition.

• Tune-up FDI and trade policies to attract quality

investment in critical areas.

• Improve business regulatory framework: ‘cost of doing

business’, transparency, incentives for R&D, innovation

etc.

• Better consultation and co-ordination in industrial policy

making

Industry

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• Some sectors should be given special attention because they

contribute most to our objectives

e.g. Create large employment: textiles and garments, leather

and footwear; gems and jewellery; food processing industries

• Deepen technological capabilities:

• Machine tools; IT hardware and electronics

• Provide strategic security:

• telecom equipment; aerospace; shipping; defence

equipment

• Capital equipment for infrastructure growth:

• Heavy electrical equipment; Heavy transport and earth-

moving equipment

• Sectoral plans are being prepared for each of the above with

involvement of industry associations and the concerned

Ministries

Industry

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Must aim at universalisation of secondary education by

2017

Must aim at raising the Gross Enrolment Ratio (GER) in

Higher Education to 20 percent by 2017 and 25 percent

by 2022

Must focus on quality of education. Must invest in faculty

development and teachers’ training

Must aim at significant reduction in social, gender and

regional gaps in education. Targets to be set for this

purpose

Research and innovation in higher education must be

encouraged with cross-linkages between institutions and

industry

Education and Skill

Development

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• Better health is not only about curative care, but about

better prevention, Clean drinking water, sanitation and

better nutrition, childcare, etc. Convergence of schemes

across Ministries is needed.

• Expenditure on health by Centre and States to increase

from 1.3% of GDP to at least 2.0%, and perhaps 2.5% of

GDP by end of 12th Plan

• Desperate shortage of medical personnel. Need targeted

approach to increase seats in medical colleges, nursing

colleges and other licensed health professionals

• Health insurance cover should be expanded to all

disadvantaged groups

• Focus on women and children; ICDS needs to be

revamped

Health

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• Commercial energy demand will increase at 7%

p.a. if GDP grows at 9%. This will require a

major supply side response and also demand

management

• Energy pricing is a major issue. Petroleum and

Coal prices are significantly below world prices

and world prices are unlikely to soften.

Energy

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• We must set a target of 100,000 MW capacity in 12th

Plan (against achievement of 50,000 MW in Eleventh

Plan)

• Coal availability will be a major constraint

• Hydro-power development seriously hindered by

forest and environment clearance procedures.

Himalayan States complain strongly.

• Electricity tariffs not being revised to reflect rising

costs. Regulators are being held back from allowing

justified tariff increases.

1. Power Sector Issues

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• Nuclear power programme must continue with

necessary safety review.

• Solar Mission is seriously underfunded.

• Need longer term energy solution for cooking in

rural areas. Expand LPG network (with cash

subsidy for the deserving, not subsidized

prices). Also use off grid solar and bio-mass

energy

• Wind power development, including off shore

wind power, needs to be encouraged

2. Other Energy Sources

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• India’s urban population is expected to increase from 400

million in 2011 to about 600 million or more by 2030

• Critical challenges are basic urban services especially for

the poor: water, sewerage, sanitation, solid waste

management, affordable housing, public transport

• Investment required in urban infrastructure is estimated at

`60 lakh crore over the next 20 years

• We need to develop and propagate innovative ways of

municipal financing, through Public-Private Partnerships

(PPPs)

• Land management strategies key for good urban

development as well as financing urban infrastructure

development

URBAN DEVELOPMENT

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• Railways’ Western and Eastern Dedicated Freight

Corridors must be completed by the end of the Twelfth

Plan

• High Speed Rail link between Delhi-Mumbai and

Delhi-Kolkata in the Twelfth Five Year Plan

• Complete the linkages between the ports and the

existing road and rail network. Need to deepen

existing ports. Increase bulk/container capacity

• Ensure sufficient provision for maintenance of the

already-built roads

• Invest in unified tolling and better safety on highways

• Improve bus services/public transport in smaller cities,

towns and districts.

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• Health and Education received less than projected in

Eleventh Plan. Allocations for these sectors have

increased in 12th Plan

• Health, Education and Skill Development together in the

Centre’s Plan have increased by 1.2 percent point of GDP

• Infrastructure, including irrigation and watershed

management and urban infrastructure, will need additional

0.7 percentage point of GDP over the next 4 years

• Use of PPP must be encouraged, including in the social

sector, i.e. health and education. Efforts on this front need

to be intensified

Resource Allocation Priorities in 12th Plan

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