PLANNING IN INDIA
Planning Process in India:
The planning process in India
has both a hierarchic and interactive character since we operate within the
framework of a federal democratic political structure.
The plan, as it is formulated, has three
distinctive components:
A long term perspective plan
A five year plan
Annual plan
Ø Perspective Plan: The main purpose is to indicate the desiredp directions of economic activities to serve as pointers in
formulating the operational targets that go into five year plans.
The
perspective plan formulated along two principal lines:
a)
the part that deals with the overall
strategy; also indicates the magnitude and type of resource mobilization that
will be called for as well as with the question of external financing that may
be necessary.
b)
The other and more detailed part
dealing with projected developments in a number of key sectors of the economy
which have significant backward and forward linkages. Once, key sectors are
laid, the perspective plan also tries to indicate a certain time phasing of
activities that will be called for if these objectives are to be realized.
Ø Five year plan: That is the plan document constructed on the basis of
recommendations made by a large number of working groups which deal with the
major sector of economic activities. Lays down broad strategies, objectives,
growth rate, sectoral targets, etc. Because of our federal nature, every five
year plan has : A central component A state component (social services,
agriculture, irrigation, infrastructural activities such as power, roads etc.
figure prominently in state component).
Ø Annual Plan: That is the important operational instrument of the fivep year plans. It provides an occasion for stocktaking and
assessing progress of the plan from year to year.
PLANNING PHASE
·
India’s leaders adopted the
principles of formal economic planning after independence as an effective way
to intervene in the economy to foster growth and social justice.
·
The planning commission was
established in 1950.
·
Responsible only to the Prime
minister, the commission is independent of the cabinet.
·
A staff drafts national plans under
the guidance of the commission; draft plans are presented for approval to the
National Development Council, which consist of the planning commission and the
chief ministers of the states.
·
The council can make changes to the
draft plan.
·
After the council's approval, the
draft is presented to the cabinet and subsequently to parliament, whose
approval makes the plan an operating document for central and state government.
ORGANIZATION
OF THE PLANNING COMMISSION :
The Prime Minister is the chairman
of the Planning Commission, which works under the overall guidance of the NDC.
The deputy chairman and the full
time members of the commission, as a composite body, provide advice and
guidance to the subject divisions for the formulation of five year plans,
annual plans, state plans, monitoring plan progress. ORGANIZATION OF THE
PLANNING COMMISSION
The planning commission functions
through several divisions, each headed by a senior officer (as):
Chairman
Dy. Chairman
Minister of state
Members
Member secretary
Senior officials
Grievance officers
FUNCTIONS
OF PLANNING COMMISSION :
THE 1950 RESOLUTION SETTING UP THE
Planning Commission outlined its functions as under:
Make an assessment of the material,
capital and human resources of the country, including technical personnel.
Formulate a plan for the most
effective and balanced utilisation of the country’s resources.
On a determination of priorities,
define the stages in which the plan should be carried out and propose the
allocation of resources for the due completion of each stage.
Determine the nature of the
machinery which will be necessary for securing the successful impementation of
each stage of the plan. FUNCTIONS OF PLANNING COMMISSION
A Review
of Indian Plans :
First Five Year Plan (1951-55):
India’s first five year plan was a moderate document → It said that detailed
planning to be attempted only for a few selected industries which India lacked.
A Review of Indian Plans
Objectives:
:
·
To correct the disequilibrium in the
Indian economy caused by the second world war and the partition of the country.
·
To achieve self sufficiency in
foodgrains production and to improve availability of raw materials To control
inflationary tendencies
·
To attempt to provide for an all
round balanced development which would ensure a rising, national income and a
steady improvement in living standards over a period of five years. Objectives:
Second
Plan: (1956-60)
Objectives:
·
To secure an increase in national
income by about 25 percent over five years.
·
To initiate rapid industrialization
with special emphasis on basic and heavy industries.
·
To generate more employment
opportunities
·
To reduce the growing inequalities
in the distribution of income and wealth.
·
To increase the rate of investment
from 7 percent of National income to 11 percent of National income by 1960-61.
Third
Plan (1961-65)
Objectives:
·
to secure a growth in National
Income of over 5 percent per annum
·
to achieve self sufficiency in
foodgrains and to increase agricultural production
·
to meet the requirements for
industrial development and export promotion
·
to expand basic industries like
steel, chemicals, fuel, and power and machine building capacity so that future
industrial requirements can be satisfied domestically.
·
to utilize manpower efficiently by
generating more employment opportunities.
Plan
Holiday : 1966-69 1966 and 1968 : Famine years :
Economic difficulties disrupted the
planning process in the mid 1960s.
In the 1960s, India faced two wars
one with china in 1962 and then with pakistan in 1965.
This come as a huge set back to the
economy as defence expenditure increased sharply and there was negative impact
on industrial and agriculture growth.
Three annual plans guided
development between FY 1966 and FY 1968 while plan policies and strategies were
reevaluated.
Fourth Plan (1969-73)ö
Objectives:
·
to attain a 5.5 percent growth in
national income per annum
·
to bring about economic
stability
·
to achieve self reliance
·
to achieve social justice and
equalityí
·
to utilize Panchayati Raj
institutions in local and regional planning.
·
to recognize the management of
public enterprises.
Fifth
Five Year Plan (1974-78)ö
Objectives:
·
to remove poverty and achieve self
reliance
·
to achieve an adequate expansion of
employment opportunities particularly in rural areas.
·
to achieve development without
stimulating further inflationary pressures by introducing fiscal and monetary
measures.
Sixth
Plan (1980-84)
Objectives
·
to remove widespread poverty
particularly in rural areas
·
to have an appreciable step up in
the rate of growth of the economy
·
to strengthen the impulses of
modernization for economic and technological self reliance
·
to provide basic needs of the people
(drinking water, elementary education, health, etc.)
·
to reduce inequalities of income and
wealth through redistribution in favour of the poor
Seventh
Plan (1985-89)ö
Objectives
·
to achieve growth, equity, social
justice, self reliance and improved efficiency and productivity to accelerate production of foodgrains
·
to increase employment opportunities
·
to lessen agricultural constraints
on industrial development
·
to initiate rapid expansion of
scientific and technological capabilities.
Eighth
Plan (1992-96)
The eighth plan is a plan for
managing the change, for managing the transition from a centrally planned
economy to a market led economy, without fearing our socio-cultural fabric.
The Ninth Plan prepared under the United Front Government was released
in March 1998. The same was modified and approved by the National Development
Council in February 1999, nearly two years after its implementation from
April 1, 1997.
1.
OBJECTIVE OF THE NINTH PLAN
·
The Ninth Plan was developed in the
context of four important dimensions of state policy, viz. Quality of life,
generation of productive employment, regional balance and self-reliance The
Ninth Plan focused on accelerated growth, recognising a special role for
agriculture for its stronger poverty reducing and employment generating
effects, which will be carried out over a 15 year period.
·
The focus of the Ninth Plan was on:
"Growth with Social Justice and Equality'
Tenth Five
Year Plan (2002-2006) :
OBJECTIVES, TARGETS AND STRATEGY
Background of Developments in 1990's
The Tenth Plan (2002-07) was
prepared against a backdrop of high expectations arising from some aspects of
the recent performance.
GDP growth in the post-reforms
period improved to an average of about 6.1 per cent in the Eighth and Ninth
Plans from an average of about 5.7 percent in the 1980s, making India one of
the ten fastest growing developing countries. Encouraging progress was also
made The percentage of population in poverty continued to decline, even if not
as much as was targeted. Population growth decelerated below 2 per cent for the
first time in four decades. Literacy increased from 52 per cent in 1991 to 65
per cent in 2001 and the improvement was evident in all States. Sectors such as
software services and IT enabled services have emerged as new sources of
strength creating confidence about India's potential to be competitive in the
economy Tenth Five Year Plan (2002-2006)
FOLLOWED
BY
11
TH AND 12 TH 5 YR OBJECTIVES
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