CURRENT FIVE YEAR PLAN(2012- 2017)

By- Sweety Gupta

• India at the time of independence was left with crippling economy by British, which needed attention and well planned strategies to boom again in the global market.

• The Planning Commission was set up by a Resolution of the Government of India in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community.

• The Planning Commission was charged with the responsibility of making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilisation of resources and determining priorities.

• Five year plan objectives: • To deal with disparity of income and wealth • Govt. activism required for socially desirable activities with

available resources and foreign exchange • Govt. intervention required for development of infrastructure • Balanced regional development.

ECONOMIC GROWTH

• In 12th five year plan, 9% GDP growth is expected. Higher investment and fund mobilization will induce market development and employment.

• Well regulated and integrated markets would generate enough jobs and live hood opportunities. Development through efficient capital markets and public private partnership will further boost the economy and thus may sustain the growth rate of 9 %.

• Growth of a sector through PPP model would lead to decentralization of economies and inclusion of various sectors, such that a parallel economic development is induced from this multi-sectoral growth approach.

AGRICULTURE India is now self dependent for domestic food demands as a result of

green revolution and previous five year plans. Rural economy growth has to be enhanced by sustained agriculture growth and development of rural areas by providing rural infrastructure and amenities.

• A balanced regional development can be achieved through agro-dependent sectors.

• Innovative technologies and open-market economies would enhance HDI of rural population. For all perishable products investments and institutional development are more important than subsidies or price support systems.

• Forest economies and tribal societies need greater protection and promotion

TRANSPORTATION • In order to attain an overall growth urban governance, urban

renewal, finance and urban transportation reforms should be focused.

• Adequate transport facilities would result in efficient distribution network, thereby reducing in accessibility and consequently save the cost involved. Improved connectivity would also help in managing urbanization and reduction of migration in metro cities, leading to development of small and medium town.

• Energy efficient transport systems needs to be incorporated with emphasis on eco-friendly and renewable resources.

ENVIRONMENT

• With the fast pace of industrialisation, India is already loosing area under forest cover rapidly. More human interventions will lead to severe loss of habitat.

• • Environmental degradation and ecological imbalance are the two aspects which result out of development initiatives at local and global levels. Growth of economy without compromising on environment is a key issue to be addressed as, sustainable growth is essential now.

• • Technological advancement, equitable distribution, affordability along with public awareness is major points of concern.

DECENTRALIZATION

• • Previous five years plans have faced the reluctance of public participation.The 12th five year plan however talks about decentralization, empowerment and information.

• • The policy making process should trickles down to the lowest level of society and more people should have a say in the process.

• • Citizens should be well informed and more powers should be given to the public to efficiently convey the issues by letting people know their powers and rights.

TECHNOLOGY

• Globalization has led to rapid industrialization and competition in the market. Technological and organizational innovation will help to enhance productivity and efficiency.

• • Technological innovations leads to faster results and organizational innovation would help in efficient utilization of resources, facilitated by providing incentives and tax subsidies.

HEALTH CARE • Healthcare conditions are improving in the country but its

affordability and accessibility is still an area to be focused on. Curative and preventive healthcare would help in increasing general quality of life.

• • Focus on women and children is essential but importance to elderly class and handicaps in order to achieve inclusive healthcare development is essential.

• • Shortage of qualified medical personnel at all levels is a major hurdle in improving the outreach of the healthcare system, especially the public health facilities

ENERGY

• Energy being the wheel of growth has to be focused to ensure faster and inclusive growth.

• Dependency on traditional energy resources has to be reduced with more emphasis on domestic renewable energy production.Use of Non Renewable Sources of Energy being restricted to priority based industries while promoting Non-Conventional Energy Resources for rest of the sector.

• Nuclear power program must continue, with necessary safety review. Active efforts need to be made to allay the apprehensions of people regarding the safety of nuclear power plants.

• • Solar mission is seriously underfunded and requires more support. Wind power too requires greater support, especially for off-shore locations which have not been sufficiently explored

EDUCATION

• Education being a concerned sector in five year plans has to be now emphasized more on accessibility, affordability and quality.

• • The employability is to be increased for optimum exploitation of human resources. Improvement in educational infrastructure, research and developments.

• • Vocational education will need to be given greater emphasis and made more attractive. Skill Development needs a major focus at all levels.

CONCLUSION

The economy will enter the 12th plan period in an environment of great promise but also one that presents major challenges. India has done well on the growth front, but not so well on inclusion. Much of what needs to be done to accelerate GDP growth to 9% so will be done by the private sector, but the central and state governments have a crucial role to play in providing a policy environment that is seen as investor friendly and is supportive of inclusive growth. Finally, the efficiency in implementation of projects on the ground needs to be greatly improved.

• Most of what needs to be done in this context rests with state governments but the central government must find ways of improving project design, prioritising resources to fund well designed interventions that work, devolving resources to lower levels and helping build capacity. Evidence-based evaluation is critical for redesign and prioritisation.