India is a vibrant, pluralistic and federal democratic setup. The policy making process necessitates unanimity building with extensive consultations between the Central Government, State Govts, numerous governmental and non-governmental organizations. Within this complex framework, the planning in India over the last sixty years have served three primary objectives: (1) to deliver a common, agreed, framework of objectives and a strategy within which compatible decisions can be evolved, (2) to analyse the reasoning of these decisions, (3) to delineate the strategy for accelerated growth of the economy and enhance the welfare of all citizens.
Planning Commission (PC)
In March 1950, Government of India constituted a statutory body with the Prime Minister of India as its chairman-called the Planning Commission. Pt JawaharlalNehru was the first chairman of the Planning Commission. The PC was charged with the accountability of making assessment of all resources of the country augmenting deficient resources, formulating plan for the most effective and balanced utilization of resources and determining priorities. It is an extra-constitutional and non-statutory body. The Planning Commission has a chairman (usually the Prime Minister of India), a deputy-chairman and minister of state for planning (ex-officio member) as its important members.
National Planning Council (NPC)
It is an advisory body attached to the Planning Commission and was constituted in 1965. It inclusive of experts representing a cross-section of the Indian economy.
National Development Council (NDC)
Chief Ministers of the states, together with the members of the Planning Commission, establish the National Development Council. The PM of India leads over the Council. In 1952, the NDC was formed for the first time as an adjunct to the PC to associate the states in the formulation in the plans.
Five Year Plan
The Planning Commission was set-up to formulate basic economic strategies, draft plans and lookout its progress and implementation. It inclusive of
1. Planning Commission of India.
2. National Planning Council.
3. National Development Council and State Planning Commissions.
First Five Year Plan
Period: 1951-52 to 1955-56
Remarks: Importance given to agriculture and irrigation
Second Five Year Plan
Period: 1956-57 to 1960-61
Remarks: Improvement of basic and heavy industries.
Third Five Year Plan
Period: 1961-62 to 1965-66
Remarks: Long term devel0pment of India’s economy
Annual Plan
Period:1966-67 to 1968-69
Remarks: Plan holiday period - China and Pakistani wars
Fourth Five Year Plan
Period: 1969-70 to 1973-74
Remarks: It brought in a 'scientific temper' to Indian agriculture.
Fifth Five Year Plan
Period: 1974-75 to 1977-78
Remarks: Dismissed a year earlier by the Janata Government which introduced the 'Rolling Plan' concept.
Annual Plan
Period: 1978-79 to 1979-80
Remarks: Launched by the Janata Government
Sixth Five Year Plan
Period: 1980-81 to 1984-85
Remarks: Originally launched by the Janata Government. However, abandoned by the new Government and a maximize plan for 1981-85 subsequently approved
Seventh Year Plan
Period: 1985-86 to 1989-90
Remarks: Food, work and productivity were the basic priorities
Annual Plan
Period: 1990-91 to 1991-92
Remarks: Basic thrust was on boosting of employment and social transformation
Eight Five Year Plan
Period: 1992-93 to 1996-97
Remarks: Faster economic growth, rapid growth of manufacturing, agricultural and related sectors, significant growth rates in exports and imports, development in trade and current account deficit and significant reduction in Central Govt’s fiscal deficit
Ninth Year Plan
Period: 1997-98 to 2001-02
Remarks: Priority to agriculture and rural development; accelerating growth rate of economy; food and nutritional security for all; containing growth rate of population: empowerment of women and socially disadvantaged sectors such as SC, STs, BCs & minorities, etc. Developing and promoting participatory institutions like 'Panchayati Raj' organisations, co-operatives and self-help groups.
Tenth Five Year Plan
Period: 2002-2007
Remarks: Cutting down on unnecessary expenditure; improving farm sector, financial sector, judicial system; eliminating harassment, corruption and red tapism; controlling drought, floods, population growth; increasing FDI and FPIs; labour and economic growth.
Eleventh Five Year Plan
Period: 2007-2012
Remarks: Eleventh Plan Growth in agriculture, education, health care facilities; provision of safe drinking water, providing scholarships; improving and making integrated development services and National Rural Employment Guarantee Scheme to reach more beneficiaries: emphasis on HIV / AIDS, polio, urban development and care of women and children, treatment of infectious diseases.
Twelfth Five Year Plan
Period: 2012-2016
Remarks: Basic objective is faster, more inclusive and sustainable growth. (Could target at 9 to 9.5 which will requisite strong policy action. Major sectoral challenges arc energy, water and environment which need to be addressed without sacrificing growth. To find resources to create a world class infrastructure in the country. Require greater performance in agriculture, for development to be further inclusive. Plus, faster creation of jobs, specifically in manufacturing and stronger efforts at healthiness, education and skill improvement are given importance. Moreover, necessity to increase effectiveness of programmes directly targeted at the poor, special programmes for socially vulnerable groups and special plans for disadvantaged/backward regions.)
Some Important Points
Planning in India originates its objectives and social premises from the Directive Principles of State Policy enshrined in the Indian Constitution. Main features of planning in India: Comprehensive plans; Indicative economic planning but based on erratic data; more of social planning than economic planning. India has completed Eleven Five Year Plans since 1951. Broad objectives of India Five year Plans include: Economic growth; Self-reliance; purging unemployment; decline of Income inequalities; poverty eradication and modernization. Apart from that basic objectives, each 5 year plan takes into account the new constraints and possibilities face during the period and attempts to make the necessary directional emphasis. Planning Commission is an extra-constitutional and non-statutory body. National Development Council is an extra- constitutional and extra-legal body.
Some Important Points
Planning in India originates its objectives and social premises from the Directive Principles of State Policy enshrined in the Indian Constitution. Main features of planning in India: Comprehensive plans; Indicative economic planning but based on erratic data; more of social planning than economic planning. India has completed Eleven Five Year Plans since 1951. Broad objectives of India Five year Plans include: Economic growth; Self-reliance; purging unemployment; decline of Income inequalities; poverty eradication and modernization. Apart from that basic objectives, each 5 year plan takes into account the new constraints and possibilities face during the period and attempts to make the necessary directional emphasis. Planning Commission is an extra-constitutional and non-statutory body. National Development Council is an extra- constitutional and extra-legal body.
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