2. INTRODUCTION
Economic Planning is to make decision with respect to
the use of resources.
Economic Planning is a term used to describe the long
term plans of government to co-ordinate and develop
the economy.
Economic planning in India was stared in 1950 is
necessary for economic development and economic
growth.
3. NEED FOR ECONOMIC PLANNING
Mess Poverty And Low Per Capita Income
High Rate of Growth of Population
Low Level of Literacy
Backward Technology
Social And Economic Problem Created By Partition
Of Country
4. OBJECTIVES OF ECONOMIC PLANNING
Economic Growth.
Reduction Of Economic In Equalities.
Balanced Regional Development.
Modernization.
Reduction Of Unemployment.
5. Members Of Planning Commission Of
India
Chairman - Dr. Manmohan Singh
(Prime Minister)
Deputy Chairman - Shri Montek Singh Ahluwalia
Member Secretary - Shri Rajeev Ratna Shah
6. FIVE YEAR PLANS
The economy of India is based in part on planning through its
five year plans which are developed, executed and
monitored by planning commission .
The tenth plan completed its terms in march 2007 and the
eleventh plan is currently underway .
1. First five year plan(1951-1956)
2. Second five year plan (1956-1961)
3. Third five year plan (1961-1966)
4. Fourth five year plan (1969-1974)
5. Fifth five year plan (1974-1979)
6. Sixth five year plan (1980-1985)
7. Seventh five year plan(1985-1990)
8. Eighth five year plan(1992-1997)
9. Ninth five year plan(1997-2002)
10. Tenth five year plan (2002-2007)
11. Eleventh five year plan (2007-2012)
7. First five year plan(1951-1956)- The first Indian
Prime Minister, Jawaharlal Nehru presented the first five-
year plan to the Parliament of India on 8 December 1951.
• The plan addressed, mainly, the agrarian sector, including
investments in dams and irrigation.
• The most important feature of this phase was active role
of state in all economic sectors. after
independence, India was facing basic problems—
deficiency of capital and low capacity to save.
• At the end of the plan period in 1956, five Indian
Institutes of Technology (IITs) were started as major
technical institutions.
8. Second five year plan(1956-61) - The second five-
year plan focused on industry, especially heavy industry.
• Hydroelectric power projects and five steel mills at
Bhilai, Durgapur, and Rourkela were established. Coal
production was increased. More railway lines were
added in the north east.
• Atomic energy was also formed in second five year plan.
• The total amount allocated under the second five year
plan in India was Rs. 4,800 crore. This amount was
allocated among various sectors:
• Mining and industry
• Community and agriculture development
• Power and irrigation
• Social services
• Communications and transport
9. Third five year plan(1961-66) -The third plan stressed
on agriculture and improving production of wheat, it is
also shifted the focus towards the Defense industry.
• Many primary schools were started in rural areas.
Panchayat elections were started.
• State electricity boards and state secondary education
boards were formed.
Fourth five year plan(1969-74) - At this time Indira
Gandhi was the Prime Minister. The Indira Gandhi
government nationalized 14 major Indian banks and the
Green Revolution in India advanced agriculture.
10. Fifth five year plan(1974-79) - Stress was laid on
employment, poverty, alleviation, and justice. The plan
also focused on self-reliance in agricultural production
and defense.
• The Indian national highway system was introduced for
the first time.
Sixth five year plan(1980-85) - The sixth plan also
marked the beginning of economic liberalization. This led
to an increase in food prices and an increase in the cost
of living.
• Family planning was also expanded in order to prevent
overpopulation.
11. Seventh five year plan(1985-90) -The Seventh Plan
marked the comeback of the Congress Party to power.
• The main objectives of the 7th five year plans were to
establish growth in areas of increasing economic
productivity, production of food grains, and generating
employment opportunities.
• The thrust areas of the 7th Five year plan have been enlisted
below:
• Social Justice
• Using modern technology
• Agricultural development
• Full supply of food, clothing, and shelter
• Increasing productivity of small and large scale farmers
• Making India an Independent Economy
12. Eighth five year plan(1992-97) -Between 1990 and
1992, there were only Annual Plans.
• It was the beginning of privatization and liberalization in India.
• Modernization of industries was a major highlight of the
Eighth Plan.
• India became a member of the World Trade Organization on 1
January 1995.
• The major objectives included, controlling population
growth, poverty reduction, employment
generation, strengthening the infrastructure, Institutional
building, tourism management, Human Resource
development, Involvement of Panchayat raj, Nagar
Palikas, N.G.O'S and Decentralization and people's
participation.
13. Ninth five year plan(1997-2002) -The main objectives of
the Ninth Five Year Plan of India are:
• to develop the rural & agricultural sector
• to generate employment opportunities and promote poverty
reduction.
• to provide for the basic infrastructural facilities like education
for all, safe drinking water, primary health
care, transport, energy.
Tenth five year plan(2002-07) -
• Attain 8% GDP growth per year.
• Reduction of poverty ratio by 5 percentage points by 2007.
Providing gainful and high-quality employment at least to the
addition to the labor force Reduction in gender gaps in
literacy and wage rates by at least 50%.
14. 11th Five Year Plan Target
Income & Poverty
Accelerate growth rate of GDP from 8% to 10% and then
maintain at 10% in the 12th Plan in order to double per
capita income by 2016-17.
Increase agricultural GDP growth rate to 4% per year.
Reduce educated unemployment to below 5%.
Raise real wage rate of unskilled workers by 20 percent.
15. EDUCATION
Reduce dropout rates of children from elementary
school from 52.2% in 2003-04 to 20% by 2011-12.
Increase literacy rate for persons of age 7 years or
more to 85%.
Lower gender gap in literacy to 10 percentage points.
16. WOMEN AND CHILDREN
Ensure that at least 33 percent of the direct and
indirect beneficiaries of all government schemes are
women and girl children.
Ensure that all children enjoy a safe
childhood, without any compulsion to work.
17. ENVIRONMENT
Increase forest and tree cover by 5 percentage
points.
Attain WHO standards of air quality in all major
cities by 2011-12.
Treat all urban waste water by 2011-12 to clean river
waters.
Increase energy efficiency by 20 percentage points
by 2016-17.
18. CONCLUSION
Economic Planning help in mobilizing and allocating
the resources in desired manner.
Objective of economic planning is to reduce
inequality, economic growth, balanced regional
growth, modernization.
Each five year plan aims at achieving certain
target.Five year plan constitute the steps toward the
fulfillment of objectives of economic planning.
