🧭 Introduction to Five Year Plans (FYP)
India’s economic planning began in 1947, implemented through Five Year Plans (FYPs) to promote long-term government strategies for economic development.
- First Plan Launched: 1951
- Model: Based on the Soviet Union’s model
- Purpose: Economic development through planned resource utilization
🎯 Objectives of Five Year Plans
- Short-Term Objective: Efficient use of resources
- Long-Term Objectives:
- High growth rate
- Economic stability
- Self-reliance
- Reduction of inequalities
- Modernization
🏛️ Planning Commission of India
- Established: 15 March 1950
- First Chairman: Jawaharlal Nehru
- Reported to: Prime Minister
- Dissolved: 17 August 2014
- Replaced by: NITI Aayog on 1 January 2015
🧱 History and Milestones
- Planning Commission Established: 15 March 1950
- First Five Year Plan Started: 1 April 1951
- National Development Council (NDC): Established on 6 August 1952
- NITI Aayog Formed: 1 January 2015
📘 Summary of Five Year Plans
| Plan | Years | Growth Target / Actual | Prime Minister | Key Focus / Slogan |
|---|---|---|---|---|
| 1st | 1951–56 | 2.1% / 3.6% | Nehru | Agriculture, irrigation, energy, price stability |
| 2nd | 1956–61 | 4.5% / 4.2% | Nehru | Rapid industrialization (Mahalanobis Model) |
| 3rd | 1961–66 | 5.6% / 2.8% | Nehru | Self-reliance, heavy industries, agriculture |
| Plan Holiday | 1966–69 | — | Indira Gandhi | Annual Plans due to war, drought, inflation |
| 4th | 1969–74 | 5.7% / 3.3% | Indira Gandhi | Growth with stability, self-reliance, DPAP |
| 5th | 1974–78 | 4.4% / 4.8% | Indira Gandhi | Garibi Hatao, Minimum Needs Programme |
| Rolling Plan | 1978–80 | — | Morarji Desai | Annual plans; continued previous programs |
| 6th | 1980–85 | 5.2% / 5.5% | Indira Gandhi | Garibi Hatao Phase II, poverty eradication |
| 7th | 1985–90 | 5.0% / 6.0% | Rajiv Gandhi | Productivity, social justice, modernization |
| 8th | 1992–97 | 5.6% / 6.8% | P. V. Narasimha Rao | LPG reforms, human development |
| 9th | 1997–2002 | 6.5% / 5.5% | A. B. Vajpayee | Growth with social justice, rural employment |
| 10th | 2002–07 | 8.0% / 7.6% | Vajpayee / Manmohan Singh | Inclusive growth, reduce poverty |
| 11th | 2007–12 | 9.0% / 8.0% | Manmohan Singh | Faster and more inclusive growth |
| 12th | 2012–17 | 8.0% / ~7.0% | Manmohan Singh | Faster, sustainable, inclusive growth |
⚙️ Key Concepts & Reforms
🔄 Structural Adjustment Policies
- Introduced before 8th Plan (1992–97)
- Triggered by 1991 economic crisis
- Led to Liberalization, Privatization, Globalization (LPG reforms)
🔭 Perspective Plan
- 20-year vision beyond five-year cycles
- Guides overall development direction
🌍 Global Financial Crisis (2008)
- Affected 11th Plan
- India responded with stimulus packages and increased public spending
🧾 Quote on Poverty & Inequality
- Found in 1st Five Year Plan
- Emphasis on land reforms and agricultural development