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Five Year Plan of Economic Growth of India

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A Brief Look at Five Year Plans:

1. The First Five Year Plan (Fiscal Year 1951-55) sought to stimulate a balanced economic growth and remedy the imbalances caused by World War II and the partition of India. Agriculture was prioritized, including projects linking irrigation and power generation.

2. The Second Five-Year Plan (Fiscal Year 1956-60) emphasized industrialization, particularly the development of basic and heavy industries and economic infrastructure in the public sector. The project emphasized social objectives, namely the distribution of income more equitable and the benefits of economic growth to a large number of disadvantaged people.

3. The Third Five-Year Plan (Fiscal Year 1961-65) was aimed at significantly increasing the income of national and individual banknotes while expanding the industrial base and adjusting the abandonment of agriculture in the previous plan. For the third project, national income should grow at a rate of more than 5% per annum; Self-sufficiency in foodgrains was expected in the mid-1960s.

Economic problems in the mid-1960s disrupted the planning process. In the 1960s, India faced two wars, one with China in 1962 and then with Pakistan in 1965. This was a major setback for the economy, which drastically increased defense spending and had a negative impact on industrial and agricultural development. During the 1965 war, foreign aid was reduced. All of this has increased in price. The three-year plans led to growth between the 1966 fiscal year and the 1968 fiscal year, while the policies and strategies of the program were re-evaluated.

4. The Fourth Five Year Plan (Fiscal Year 1969-73) requires a 24% increase over the Third Plan in terms of public development expenditures. The public sector accounted for 60% of the project’s costs, and external assistance contributed 13% of the project’s funding. Agriculture, including irrigation, received 23% of public expenditure; The rest were mainly spent on electricity, industry, and transportation. Although the project predicted a national income growth of 5.7% per year, the realized rate was only 3.3%.

5. The Fifth Five Year Plan (Fiscal Year 1974-78) was created at the end of 1973 when crude oil prices were rising rapidly, and the price increases forced a series of quick fixes. The plan was later approved by the end of 1976, but was discontinued at the end of the 1977 financial year as the new fund had different priorities and plans. The Fifth Plan was in effect for only one year, although it did provide some guidance on investments over the course of five years. The economy operated under the annual plans in the fiscal year 1978 and fiscal year 1979.

6. The Sixth Five Year Plan (Fiscal Year 1980-84) was flexible and based on the principle of “mobile” year plans. He asked for development costs of approximately $ 1.9 billion (at the end of the 1979 fiscal year), of which 90% would be funded from national sources, 57% of which would come from the public sector. Public sector development expenditures will focus on energy (29%), agriculture and irrigation (24%), mining (16%), transport (16%) and social services (14%). The project requires an annual growth of 5.1% of GDP, 0.3% It was higher than% and only 10% of the poor rose above the poverty level.

7. The Seventh Five Year Plan (Fiscal Year 1985-89) placed more emphasis on the allocation of resources for energy and social expenditure at the expense of industry and agriculture. In fact, there was a major increase in transportation and communication, which accounted for 17% of public sector spending during this period. Total expenditure was nearly $ 3.9 billion, of which 94% would be financed with internal resources, including 48% in the public sector.

8. The Eighth Five-Year Plan was launched in April 1992 and emphasized the reform of market-based policies rather than quantitative objectives. Total expenditure was projected at $ 8.7 billion, of which 94% will be funded with internal resources, 45% from the public sector. Government documents released in 1992 show that GDP growth during the Seventh Plan is expected to increase from 5% annually to 5.6% per annum during the Eighth Plan. However, economists in 1994 expect annual growth to be around 4% during the eighth plan.

9. The Ninth Five Year Plan was launched on the occasion of the 50th anniversary of Indian independence. The Ninth Five-Year Plan adopted by the National Development Council prioritized agriculture and rural development with the aim of creating adequate productive employment and reduce poverty in the country.
Accelerating the growth rate of the economy with fixed prices.
Ensuring food and nutrition security for all, especially vulnerable sectors of society.
Provision of minimum basic services of drinking water, primary health care, global early education, housing, and connectivity on a temporary basis.
It has a population growth rate; Ensuring the environmental sustainability of the development process through community mobilization and participation of people at all levels.
Empowering women and socially disadvantaged groups as Scheduled Caste, Scheduled Tribes and other Backward Classes and Minorities as Agents of Change and Socio-Economic Development.
Promoting and creating individual participatory organizations such as Panchayati Raj institutions, Co-operatives, and Self Help Groups, and strengthening efforts to build self-confidence.
These same priorities form the objectives of the Ninth Plan.

10. The Tenth Five-Year Plan is only the first phase of a ten-year road map. It was assumed that the Prime Minister’s view could be realized by the growth rate of 8% during the Tenth Plan and 9.3% during the Eleventh Plan, and focusing on the growth of employment-intensive sectors. The Tenth Plan represents a growth of 8% of GDP. In the period 2002-2007, economic growth was not the sole objective of the national program. Over the years, growth goals have been defined not only in terms of increases in GDP or per capita income but also in the public interest, in terms of improving human well-being.

11. Eleventh Five Year Plan (Fiscal Year 2007-2012) India’s central planning process is governed by seven basic policy objectives: growth, Social justice and equality, Modernization, Food self-sufficiency, Productivity and Employment. These are the guiding principles of the Eleventh Plan (2007-12), which begins on April 1, 2007.
Much of our program addresses financial aspects and physical objectives. However, it is important to recognize that human and natural resources, scientific methods and technologies are fundamental components of generating wealth for greater productivity, greater efficiency and new ways of doing things. The Eleventh Plan, therefore, will emphasize these elements that have not received sufficient attention in the past. The Eleventh Plan will be the vehicle for positioning the country as an economic, strategic and scientific superpower. For the Eleventh Five Year Plan, the Government of India expects the economy to grow at an annual growth rate of 8.5%. This implies that the agriculture sector is at 3.9%, industry at 9.9%, services at 9.4%, exports at 16.% and imports at 12.1%. The indirect growth of the manufacturing sector, a subset of the industry, represents 12%. Previous growth rates backed each other up, of course, depending on a number of factors. Some of these factors are influenced by the internal and other external environment for the Indian economy. Only through continuous technological advances can agricultural productivity growth be sustained over the long term, which requires well-structured strategies for research and development. The industrial sector has gained a lot in the last decade due to liberalization and is gradually integrating with the global economy. Some sub-sectors, such as automobiles, pharmaceuticals, biotechnology products, specialty chemicals, textiles, are gaining unprecedented global competitiveness and need support to maintain their current advantage. The Eleventh Plan places special emphasis on infrastructure and capacity development, two important and critical growth catalysts.

The service sector is currently the fastest-growing economic sector and represents 54% of GDP. It is estimated that the sector has the potential to generate 40 million jobs and generate additional revenue of $ 200 billion by 2020. In the Eleventh Plan, the government places special emphasis on the sector, which has the potential to create employment as a parameter.

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