five year plans (11th five year plan

7/29/2019 FIVE YEAR PLANS (11th Five Year Plan

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FIVE YEAR PLANS(11THPLAN)

Presentation by :

ShwethaAcharya T.


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THE PLANNING MACHINERY :

The planning commission was set up in march

1950, by a resolution of the government ofIndia. Jawaharlal Nehru was the 1st chairman ofplanning commission. It has following functions :

To make an assessment of the materials,

capital, human resources of the countryincluding technical personnel &investigate thepossibilities of augmenting such of theseresources as are found to be deficient in relationto the nations requirements.

To formulate a plan for the most effective &balanced utilization of the countrys resources


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NATIONAL DEVELOPMENT COUNCIL {NDC}

A number of committees & commissions are alsoworking with the Planning Commission. One ofthem is NDC.

The NDC is presided over by the Prime Minister &

is composed of Union Cabinet Ministers, ChiefMinisters of States & Union Territories &members of the Planning Commission.

The secretary of the planning commission acts assecretary of the NDC & the commission isexpected to provide such administrative & othersupport as may be necessary


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FUNCTIONS OF NDC :

To prescribe guidelines for the formulation ofthe National Plan including the assessment

of resources for the plan.

To consider the important questions of social& economic policy affecting national

development.


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To revive the working of the plan from time to

time & recommend such measures as arenecessary for achieving the aims & targets

set out in the National Plan , including

measures to secure active participation & co-

operation of people, improve efficiency of the

administrative services, ensure fullest

development of less developed regions &

section of the community, build up resourcesfor national development.


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FORMULATION OF THE PLAN :

The preparation of 5 year plans is usually

spread over a period of 2 to 3 years.1st stage is consideration of the general

approach to the formulation involving an

examination of the state of the economy,appraisal of past trends of production andgrowth in long run. Preliminary conclusions inthese are submitted to central cabinet & to

NDC.On their approval they are published in the

form of a document & is free for debate


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The 2nd stage is where the planning

commission constitutes group of each sector

considering specialists in that group makesurvey, collect opinion of experts.

While preliminary documents are debated

nation wide. The commission holds detaileddiscussion with the union ministers, state

govt, UTs @the highest level.

On the basis of the preliminary studies &results of the discussions a draft report is

prepared & based on the draft, final plan for

the period is prepared.


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OBJECTIVES OF INDIAN PLANS :

Proper utilization of the national priorities &

fast development of economy.

Alleviation & ultimate removal of

unemployment & poverty.

Improvements in the standard of living in

general.

Balanced regional development & all sectors

of the economy.


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REVIEW OF THE PLANS :-

The dawn of first five year plan began fromApril 1st 1951. It went on smoothly till 1966(dusk of 3rd five year plan).

Then due to some problems in 3rd plan, severe

drought in the country, aggressions betweenchina and Pakistan seriously disrupted thedevelopment process. This led to fall in

income, sharp increase in prices which inturn led to fall in savings rate. Seriousbalance of payment crisis which led todevaluation of rupee by 36.5% in June 1966.


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The fourth five-year plan was put off by 3years.Because of lack of funds in the govt treasury.The intervening period of 3 years had annualplans. This period is referred as plan holiday.

The political change led to premature end of fifthfive year plan (74-79). New govt. headed by

janata party which assumed power from 1977,brought an end to the fifth plan when it was in itsfourth year i.e., march 1978 instead of 1979. italso put forth the rollingplan.

The fall of the Janata Govt and congressregaining its power again terminated the rollingplan and began the five year plan which was thesixth plan .


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On completion of sixth plan seventh plan waslaunched on time but 8th plan was delayed by

2 years i.e. it was launched only in 1992.

then from 9th plan onwards it is being

beginning on time with no delays.


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PRIORITIES OF FIVE YEAR PLANS :

1st plan(1951-56) Agriculture.

2nd plan(1956-61) Heavy industries3rd plan(1961-66) Export promotion

4th plan(1969-74) Self reliance

5th plan (1974-79) Growth with social justice6th plan (1980-85) significant step up in the

growth rate of economy, services in the

favour of poor.7th plan (1985-90) Food work & productivity

8th plan(1992-97) Private participation inbusiness


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9th plan (1997-02) - Growth with social justice;

adequate employment & eradication of

poverty; equality food & nutritional security to

all ; population control; environmental

sustainability; empowering women & socially

disadvantaged people etc.

10th plan (2002-07)- Providing basic

necessities of life to the common man ,

greater participation in decision making. Toensure significant progress towards

improvement in the quality of life of all

people.


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The Background :

Despite the not so bad overall performance ofthe economy large parts of the populationis still to experience a decisive

improvement in their standard of living.Although the %age of the population belowthe poverty line is declining the pace isslow, is modest. Still there is huge mass

lacking access to basic services such asdrinking water ,health, sanitation, educationfacilities.

ELEVENTH FIVE YEAR PLAN 2007- 2012


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ELEVENTH PLAN PERSPECTIVE :

The 11th plan perspective begins with the cautious &realistic note that despite of encouraging GDP growthrate of recent years economic growth has failed to beinclusive particularly after mid 1990s.

Agriculture lost its momentum.

Jobs in organized sector have not increased despiteof faster growth.

Malnutrition tends to be declining but a lower rate.Far still too many people still lack access to basicfacilities like food, health, education clean drinkingwater & sanitation facilities without providing all thesewe cannot claim for development in the economy.

Women have increased their participation in work butdiscrimination continues, declining of child sex ratio.


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Vision :

Faster and more Inclusive Growth.

Plan must aim at putting the economy on a

sustainable growth 10% by the end of plan

period.- increase in employmentopportunities equal income distribution

target strong agricultural growth of 4%p.a.

reduce disparities across regions &communities by ensuring access to basic

physical infrastructure & health & education

facilities to all.


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Rapid growth is essential for 2 reasons :

It is only in a rapidly growing economy that we canexpect to sufficiently raise in the incomes of the mass

of our population to bring about a generalimprovement in the standard of living conditions.

Rapid growth is necessary to generate resourcesneeded to provide basic services to all.

Work done with planning commission & else wheresuggest that economy can accelerate from 8% peryear to an average of about 9% over the end of 11thplan provided policies are put in place.

With population growing at 1.5% per year , 9% growthrate in GDP would double the per capita income in 10years.


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Key element of the strategy for inclusivegrowth must be an overall effort to provide

the mass of our people access to basicfacilities like health, education, clean drinkingwater, etc.

The private sector, micro, small, & mediumenterprises (MSMEs) has a crucial role toplay in achieving the objective of faster &more inclusive growth. MSMEs account for

76% of the total investment and more thanthat employment & output.

Growth of entrepreneurship in all levels not justin top management.


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1. Income & Poverty : Accelerate GDP growth from 8% to 10%

and then maintain at 10% in the 12thPlan. Increase new agricultural GDP growth

rate to 4% per year.

Create 70 million work opportunities. Reduce educated unemployment to

below 5%. Raise real wage rate of unskilled workers

by 20 percent. Reduce the headcount ratio ofconsumption poverty by 10 percentagepoints.


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2. Education:

Reduce dropout rates from 52.2% in 2003-04 to20% by 2011-12.

Develop minimum standards of educational

attainment in elementary school. Increase literacy rate for persons of age 7

years or more to 85%.

Lower gender gap in literacy to 10 percentage

points.


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3. Women & Children :

Raise the sex ratio for age group 0-6 to 935by 2011-12 and to 950 by 2016-17.

Ensure that at least 33 percent of the direct& indirect beneficiaries of all government

schemes are women and girl children.

Ensure that all children enjoy a safe

childhood, without any compulsion to work.


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4. Infrastructure:

Ensure electricity connection to all villages and

BPL households by 2009 and round-the-clock

power.

Ensure all-weather road connection to all

habitation with population 1000 and above by

2009, and ensure coverage of all significanthabitation by 2015.

Connect every village by telephone by

November 2007 and provide broadband

connectivity to all villages by 2012.

Provide homestead sites to all by 2012 and

step up the pace of house construction for rural

poor to cover all the poor by 2016-17.


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5. Health :

Reduce infant mortality rate to 28 and maternal

mortality ratio to 1 per 1000 live births. Reduce total fertility rate to 2.1

Provide clean drinking water for all by 2009 and

ensure that there are no slip-backs. Reduce malnutrition among children of age

group 0-3 to half its present level.

Reduce anaemia among women and girls by

50% by the end of the plan.
http://en.wikipedia.org/w/index.php?title=Maternal_mortality_ratio&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Maternal_mortality_ratio&action=edit&redlink=1


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6. 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 riverwaters.

Increase energy efficiency by 20 percentage points by

2016-17.


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7. In general :

Expanding import promotion activity.

Strengthening the capacity of disaster prevention&mitigation.

Ensuring food & drug safety.

Building a legal system in a all round way Building clean & honest government

Efforts to promote the culture of the country.

Promotion the modernization of the army and also

improve the defense of the economy.


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THE POTENTIAL

Simulations show that growth that is likely to

be achieved without significant new policy

initiatives or business as-usual scenario is 7

to 7.5% .

Growth has been rapid in recent years so a 8%

attainment is not a difficult task.

All the models also indicate that with additional

policy initiatives it is possible to accelerate

the growth rate to 9% .


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ALTERNATIVE SCENARIOS FOR 11TH

PLANTarget GDP growth rate

in 11th plan

7.0% 8.0% 9.0%

Average investment rate 29.1 32.0 35.1

Average CAD as % of

GDP

2.0 2.4 2.8

Domestic savings rate 27.1 29.6 32.3

a)households 20.1 20.5 21.0

b)corporate 5.0 5.5 6.1

c)PSEs 3.1 3.1 2.8

d)government -1.1 0.5 2.4


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INDIA'S GROWTH PERFORMANCE DURING

THE PLANS

Sl no TARGET ACTUAL

1 First plan 2.1 3.60

2 Second plan 4.5 4.21

3 Third plan 5.6 2.72

4 Fourth plan 5.7 2.055 Fifth plan 4.4 4.83

6 Sixth plan 5.2 5.54

7 Seventh plan 5.0 6.02

8 Eighth plan 5.6 6.68

9 Ninth plan 6.5 5.5

10 Tenth plan 8.0 7.2*

*estimate


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Although the plans have , by and large failed to

achieve the targets & shortfalls are

conspicuous in several areas.

The 1st plan performance was satisfactory but in

the 5th, 6th, 7th, 8th, the actual growth rates

slightly exceeded the targets.


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REASONS FOR PLAN FAILURE IN

DEVELOPING COUNTRIES:

1. Inconsistencies in plan objectives :

the assumptions of the planners is in

conflict with the reality. Economic growth ,

poverty alleviation employment generation,income inequality reduction &

modernization do not go hand in hand.


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2.Insufficient & unreliable data :

Data gap is too much in LDCS. with this

kind of data insufficiency , it is difficult forany planners to build a strong plan

3. Institutional weakness:

Continuous interaction between planningagency and day to day decision making

machineries of the govt. is generally lacking

4. Lack of political will:The level of commitment among the

political leaders & high level decision

makers is poor.


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five year plans (11th five year plan

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