PLANNING:ACHIEVEMENTS AND FAILURE
What is economic planning
Economic planning is defined as:-
- Co-ordination of goals involving allocation and prioritization of goals selected and,
- Co-ordination of the resources to be employed to achieving these goals in a specified time span.
- Planning therefore, is a strategy and mechanism of co-ordinating economic decision
- This can be achieved through rational and centralised control of the economy.
- So that all the set objectives are achieved in definite time frame.
- In this sense, planning is always a conscious and deliberate attempt.
- First to estimate available total resources in economy as a whole.
- Second to allocate those resources effectively to achieve pre-determined objectives.
- It is headed by the Prime Minister.
What are the general and specific objectives of planning in India
The basic (or) General objectives of planning in India can be summoned up as follows :-
- To improve national income and raise the standard of living in the country
- To attain rapid industrialization with an emphasis on basic and heavy industries.
- Generation and expansion of employment opportunities.
- Distributional justice through reduction in inequalities in income and wealth.
Specific objectives of planning in India:-
The First Five Year Plan:-
The First Five Year Plan (1951-56) set agriculture as its priority.
The Second Five Year Plan:-
The Second Five Year Plan (1956 – 61) gave priority to industry and particularly the heavy industries sector.
The Third Five Year Plan:-
“Self Reliance” was declared as the main objective in the Third Five Year Plan (1961– 66)
The years of 1966-67 ,1967-68 and 1968-69 had three annual plans.
The Fourth Five Year Plan:-
The Fourth Five Year Plan (1969 – 74) had removal of poverty (Garibi Hatao), and growth with justice as its main objectives.
The Fifth Five Year Plan:-
Removal of poverty and attainment of self – reliance continued as the main objectives in the Fifth Five Year Plan. ( 1974 – 79)
The Sixth Five Year Plan :-
The Sixth Five Year Plan was introduced twice: once as 1978 – 83 and the second time as 1980 – 85. The emphasis remained the same as that of the Fifth Plan.
The Seventh Five Year Plan:-
The Seventh Five Year Plan (1985 – 90) emphasized food production, employment and productivity as main objectives.
Again annual plans in 1990-91, 1991-92
The Eighth Five Year Plan:-
The main objectives of Eighth Plan (1992 – 97) are:-
- Employment generation.
- Control of population.
- Universal elementary education.
- Drinking water and
- Strengthening of infrastructure sectors.
The Ninth Five Year Plan:-
The Ninth Five Year Plan was between (1997 – 2002). A target growth of 7percent is also proposed to be set as the objective during the Ninth Plan.
The Tenth Five Year Plan:-
The Tenth Five Year Plan period was between (2002 – 2007). A target growth rate of GDP is 8 percent. The total investment of this Five Year Plan was Rs.9,21,191 Crores
The Eleventh Five Year Plan:-
The Eleventh five year plan was between (2007-2012). A target growth rate of GDP is 9%.. The total Investment is 36, 44,718 Crores. This plan is also called as “Education plan”.
- Do you find any shift in the emphasis in planning objectives in Seventh and Eight
Five Year Plans. Compared to Second Five Year Plan
- The Second Five Year Plan (1956 – 61) gave priority to industry and particularly
the heavy industries sector over agricultural sector.
- Large investments were made by the government and a strong public sector was to
be built up.
- The Seventh Five Year Plan (1985 – 90) gave emphasis to food production,
employment and productivity as main objectives.
- The Eigth Five Year Plan (1992 – 97) also gave emphasis to the employment generation, control of population, universal elementary education, drinking water and strengthening of Infrastructure sectors and development of human resources.
- In the Second Five Year Plan large investments were made by the government and
a strong public sector was built up.
- The role of public sector has progressively declining for various reasons by the
time of Seventh and Eight Five Year Plans.
- The viability of public sector is becoming difficult due to persistent loses in many
public enterprise firms and the maintainance of huge assets is uneconomical.
- Hence, celling the valuable properties of public sector firms is suggested as a
What are the achievements and failures of planning
- India has attained self – sufficiency in almost all basic and capital goods industries particularly in heavy machinery, electrical equipment and the like.
- There is a considerable rise in the Net Domestic Product in the country since planning has begun.
- The rise in savings and investment, near self – sufficiency in food grains production.
- There is a good deal of diversification in industrial structure are some of the important achievements in the economy.
- There is a growth of strong public sector leading to self – sufficiency in basic, capital and consumer goods industries.
- It has created of significant infrastructure, particularly transport, irrigation and telecommunications.
- There is a development of huge educational sector and significant growth in trained scientific and technical man power.
- Persistance poverty and unemployment at significant levels.
- Failure in achieving reduction in income inequalities and distributive justice.
- Continuance of un equal land ownership and inadequancy of land reforms.
- Whether the objectives of the Five Year Plan are tune with our National needs? What objectives do you consider most important? Why?
The basic objectives of planning in India should meet out National needs and are mentioned as follows.
1.To improve national income and raise the standard living in the country.
2. To attain rapid industrialization with emphasis on basic and heavy industries.
3.Generation and expansion of employment opportunities.
4.Distributional Justice through reduction in inequalities in income and wealth.
The general objectives of Indian planning have been in tune with our National needs from the First Five Year Plan to present plan because.
- The general objectives of Indian planning has been primarily to achieve economic growth with stability and distributional justice.
- Planning in India is based on the tenets in corporated in the Directive principles of state policy of the Indian constitution.
- The essence is reflected in the phrase socialistic pattern of society.
- It implies that major decisions regarding production, distribution, consumption and investment should be based upon the social benefit.
III Fill in the Blanks:-
- Indian planning has started in the Year 1951 April
- Removal of poverty (Garibi Hatao) was important during 1969 – 74 (4th) period.
- Now we are in the 11th plan period.
- A major failure of planning in India is it could not achieve reduction economic inequalities.
- Planning is a strategy and mechanism of coordinating economic decisions through rational and centralised control.
- Heavy industry strategy was the main objective in the 2nd Five Year Plan.
Economic growth and pollution control is not the objectives of Indian planning.
Planning commission was set up in 1950.
Garibi Hatao is the another name of removal of poverty.
The policy of ‘Garibo Hatao’ was introduced by Smt. Indira Gandhi.
The Chairman of planning commission is Prime Minister.
The duration of First Five Year Plan was 1951-1956.
Employment Generation was the Main objective in the 8th Five Year Plan.
Self reliance is the main objective in 3rd Five Year Plan.
Top – Priority was given to agriculture in First Five Year Plan.
Dollar belongs to U.S.A. Country.
Mark is currency of Germany.
Elimination of poverty is achieved by year 2005
Sterling pounds is currency of United Kingdom (U.K)
Lira is currency of Italy.
Deficit in current account in Sixth Five Year Plan. Is 11,384 Crores.
Control of population is one of the main objective in the Eight Five Year Plan.
Second Five Year Plan 1956- 61.
The present Deputy Chairman of Planning commissioner Montek Singh Ahluwalia
The plan Sixth Five Year Plan was introduced twice.