5 Year Plan

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Five - Year Plans Of

India
What is meant by five year plan ?
An economic plan allocates the resources of a In India, after the independence, the
nation to fulfill the general and specific government set up a
goals as planned by the government for a
Planning Commission in 1950. This
specified period. In India, these plans are
commission would be responsible for
made for five years and hence are known
as five year plans. These five year plans framing and implementing the five
are ultimately a short-term plan for a year plans of the country. They began
perspective plan. A perspective plan their efforts with the first five year
outlines the long-term goals of a nation, plan in 1950.
spanning twenty years.

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History Of Five Years plan
Five-Year Plans (FYPs) are centralized and integrated national economic
programs. Joseph Stalin implemented the first 
Five-Year Plan in the Soviet Union in 1928. Most communist states and
several capitalist countries subsequently have adopted them. China continues
to use FYPs, although China renamed its Eleventh FYP. India launched its
First FYP in 1951, immediately after independence, under the socialist
influence of India's first prime minister, Jawaharlal Nehru.
Goals Of Five Year Plans
▪ Every five year plan is developed with a specific goal in mind. But there is never
one solitary objective of the plan. The plan is supposed to work towards the
perspective plan and must cover a few important objectives. However, it is not
possible or practical to give equal importance to all aspects of a plan.
▪ There are basically five generalized goals of a five year plan, wherein a particular
plan one or two are given the most importance. In fact, some of the goals are
actually conflicting. So let us now look at these five types of goals we cover in the
five year plans.

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Growth
 This is the first and the most basic goal of an economic plan. Growth in terms of an economy focuses
on the increase of the Gross Domestic Product (GDP) of the country. GDP is a way to measure the
growth of an economy. Higher the GDP more the common public can benefit from the economic
policies of the country.
 This economic growth actually happens due to an increase in the production capacity of a nation for
either its goods or its services. This can be due to an influx of capital into the economy as well. The
sector in which the growth is happening is also important. There are three basic sectors – agricultural,
industrial and service. Their respective contributions make up the structural composition of the GDP.
 For very many years India’s primary focus was the agricultural sector. It was the main contributor to
our GDP. And it also saw the highest growth rate in the few initial five year plans.

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Modernisation 

Modernisation refers to the integration of For very many years India’s primary focus
technology in the economy. Innovation, was the agricultural sector. It was the main
inventions, and advancement in technology contributor to our GDP. And it also saw the
play a huge part in upgrading our economy and highest growth rate in the few initial five year
increasing its output. One example would be plans.
the introduction of modern agricultural
techniques which increased output. Over the
years, the Indian economy also saw a major
boom in the IT industry due to modernization.

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Self Reliance

A new economy like India’s Especially food and Because importing basic
post-independence can become agricultural products were essentials from other nations
too reliant on imports. So for never imported as long as would make us dependent on
seven editions of the five year possible. This was to ensure we them. Then after 1991, the
plan, the government promoted not only became self-reliant government finally opened up
self-reliance. This basically but also to protect our our economy to the
meant that anything we were sovereignty. global markets once we had
capable of producing already established a domestic
domestically we did not base.
import.

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Equity
Now the previous three goals mainly
relate to the economy. But the Equity focuses on ensuring that all citizens
of our country have their basic needs for
development of the economy only is not
food, housing, clothing etc fulfilled. It also
sufficient. The five year plans must also looks to reduce the wealth gap and the
focus on the development of our society. It inequality in our society.
is essential to ensure that these benefits
from the economy are enjoyed by all
members of the society. This is where
equity comes in.

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Seventh Plan (1985–1990)

The Seventh Five-Year Plan was led by the Congress Party with Rajiv Gandhi
as the prime minister. The plan laid stress on improving the productivity level
of industries by upgrading of technology. The main objectives of the Seventh
Five-Year Plan were to establish growth in areas of increasing economic
productivity, production of food grains, and generating employment through
"Social Justice".

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And tables to compare data
The Seventh Plan was build on these strong foundations. It seeks to maintain the momentum of
growth in the economy while redoubling our efforts to remove poverty, -economic growth must be
accompanied by social justice and by the removal of age-old social barriers that oppress the weak.
This is the essence of our concept of socialism. The plan reaffirms our commitment to this ideal. The
Plan also seeks to push the process of economic and technological modernization of the economy
further forward. This is essential we are to build true self-reliance. Self-reliance does not mean
autarchy. It means the development of a strong, independent national economy, dealing extensively
with the world, lit dealing with it on equal terms.

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Agriculture
Agriculture remains the core of our economy. It supports the largest number of our people
and it is here that the largest volume of productive employment can be generated. Faster
agricultural growth is necessary to provide the raw materials and expanding markets
needed for successful industrialization. Our agricultural strategy has achieved remarkable
success over the past decade and we must pursue it with greater vigourin the Seventh Plan.
The Plan represents a comprehensive strategy for agricultural development aimed at
achieving a growth rate of 4 per cent per year in agricultural production. We must bring
about institutional changes, including land reforms, in our rural economy. A key feature of
the strategy is the extension of the Green Revolution to the eastern region and to dry land
areas. This will reduce regional imbalances in our development, and will contribute
directly to eliminating poverty.

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Anti-Poverty
Anti-poverty programmes are an important element of the strategy. They were
expanded and strengthened in the Seventh Plan. The experience which was
gained from the Sixth Plan was used to restructure the programmes to improve
their effectiveness and to ensure that the benefits flow to those for whom they
are intended.

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Indian Industry
Indian industry was highly diversified, producing a wide
This calls for absorption of new technology,
range of products, many embodying a high level of greater attention to economies of scale and
technology. The public sector has a commanding presence greater competition. At that time the final
and has played a pioneering role in many areas. They had a analysis was development is not just about
broad entrepreneurial base and ample technological and factories, dams and roads. Development is
managerial manpower. But some weaknesses have also basically about people. The goal was the people’s
become evident at that time. Much of the industry suffers material, cultural and spiritual fulfillment . The
human factor, the human context, was of supreme
from high cost. There was the inadequate attention to quality.
value. We must pay much greater attention to
In many areas, they were working with technology that was these questions in future. The Seventh Plan
obsolete . They had reached a watershed in the industrial proposes bold initiatives in these areas. Outlays
development, and in the next phase they must focus on for human resource development had been
overcoming these problems. There emphasis must be on substantially increased. Policies and programmes
greater efficiency, reduction of cost and improvement of in education, health and welfare must also be
restructured to provide a fuller life for our
quality.
people.

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Outcome Of The Plan
Some of the expected outcomes of the Seventh Five-Year Plan India are given below:

Balance of payments (estimates): Export – ₹330 billion (US$4.4 billion), Imports – (-)₹540


billion (US$7.2 billion), Trade Balance – (-)₹210 billion (US$2.8 billion)

Merchandise exports (estimates): ₹606.53 billion (US$8.1 billion)

Merchandise imports (estimates): ₹954.37 billion (US$12.7 billion)

Projections for balance of payments: Export – ₹607 billion (US$8.1 billion), Imports – (-) ₹954


billion (US$12.7 billion), Trade Balance- (-) ₹347 billion (US$4.6 billion)

Under the Seventh Five-Year Plan, India strove to bring about a self-sustained economy in the country with
valuable contributions from voluntary agencies and the general populace.
The target growth rate was 5.0% and the actual growth rate was 6.01%.[11] and the growth rate of per capita
income was 3.7%.
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