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Whatisplan?

PLANNINGCOMMISSION

Aplanspellsouthowtheresourcesofa
nationshouldbeputtouse.
Itshouldhavesomegeneral goalsaswellas
specific objectives which are to be achieved
specificobjectiveswhicharetobeachieved
withinspecificperiodoftime.
InIndia,plansareoffiveyearduration and
arecalledFIVEYEARPLAN.

Theplanningcommissionisanorganizationin
thegovernmentofIndiawhichformulates
India'sfiveyearplan.
ItwasSetupon15Mar,1950withprime
It was Set up on 15 Mar 1950 with prime
ministerJawaharlalNehruasthechairman.
Now Mr.MontekSinghAhluwaliaholdsthe
positionofdeputychairman.

PreviousFiveYearPlans
Fiveyear plan

Period

Fiveyear plan

Period

Targetgrowth rateof Achievement

GDP(%)
(%)

Sixthplan

198085

5.2

5.54

Seventhplan

198590

5.0

6.02

Targetgrowth rateof Achievement

GDP(%)
(%)

Firstplan

195156

2.1

3.6

Secondplan

195661

4.5

4.21

Eight plan

199297

5.6

6.68

Third plan

196166

5.6

2.72

Ninth Plan

199702

6.5

5.55

Fourthplan

196974

5.7

2.05

Tenthplan

200207

8.0

7.8

Fifth plan

197479

4.4

4.83

Eleventhplan

200712

9.0

7.9

Twelfthplan

201217

9.0

15052013

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GrowthRate(in%)

11th FiveYearPlanHighlights
AccelerateGDP growth from8%to10%
IncreaseagriculturalGDPgrowthrateto4%
Create70millionnewworkopportunities.
Increaseliteracyrateforpersonsofage7
yearsoraboveto85%
Targetgrowth:9%;Growthachieved:7.9%

12th FiveYearPlan
The government on 4th October approved the
12th five year plan (201217) that set average
growth target at 8.2 percent.
The theme of the Approach Paper is
Faster, Sustainable and more inclusive
growth .

10

15052013

TwelfthPlanObjectives
Basicobjective:Faster,MoreInclusive,and
SustainableGrowth.
Couldaimat9.0to9.5percent
Forgrowthtobemoreinclusiveweneed:Better
F
th t b
i l i
d B tt
performanceinagriculture
Fastercreationofjobs,especiallyinmanufacturing
Strongereffortsathealth,educationand
Infrastructure.
Specialplansfordisadvantaged/backwardregions

StrategicChallenges
BasedonanintensiveprocesswithintheCommission,
following"TwelveStrategyChallenges"havebeen
identified
1. EnhancingtheCapacityforGrowth
2 EnhancingSkillsandFasterGenerationof
2.
E h i Skill
dF t G
ti
f
Employment
3. ManagingtheEnvironment
4. MarketsforEfficiencyandInclusion
5. Decentralization,EmpowermentandInformation
6. TechnologyandInnovation

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StrategicChallenges
7. SecuringtheEnergyFutureforIndia
8. AcceleratedDevelopmentofTransport
Infrastructure
9 RuralTransformationandSustainedGrowth
9.
l
f
i
dS
i dG
h
ofAgriculture
10. ManagingUrbanization
11. ImprovedAccesstoQualityEducation
12. BetterPreventiveandCurativeHealthCare

12thFiveYearPlan:
Sectors

SectorwiseGrowthTargets

GrowthRateTargets
Sl.No.

Sectors

11th FYP (achieved)(in%) 12th FYP(in%)

Agriculture,Forestry&Fishing

3.7

4.0

Mining

4.7

8.0

Manufacturing

7.7

9.8

Elect.Gas&WaterSupply

6.4

8.5

Construction

7.8

10.0

Trade,Hotels&Restaurant+
Transport,Storage&Communication

9.9

11.0

Financing,Insurance,RealEstate&
Businessservices

10.7

10.0

Community,Social&Personal
Services

9.4

8.0

11

Industry

7.4

9.6

12

Services

10.0

10.0

Agriculture

Target at least 4% growth for agriculture.

Cereals are on target for 1.5 to 2% growth.
Land and water are the critical constraints. Technology must
focus on land productivity and water use efficiency.
Farmers need better functioning markets for both outputs
and inputs. Also, better rural infrastructure, including storage
and food processing
States must act to modify APMC Act/Rules, modernize land
records and enable properly recorded land lease markets.

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Industry

Industry
Investmentandcapacityadditionsarecriticalfor
sustainedindustrialgrowth.
Need to grow at 1112% per year to create 2 million
additional jobs per year. Growth in 11th Plan is in
8%.
Indian industryy must develop
p ggreater domestic
value addition.
Tuneup FDI and trade policies to attract quality
investment in critical areas.
Improve business regulatory framework: cost of
doing business, transparency, incentives for R&D,
innovation etc.
Better consultation and coordination in industrial
policy making

Education
andSkill
Development
Must aim at universalisation of secondary education by
2017
Must aim at raising the Gross Enrolment Ratio (GER) in
Higher Education to 20 percent by 2017 and 25 percent by
2022
Must focus on quality of education. Must invest in faculty
development and teachers training
Must aim at significant reduction in social, gender and
regional gaps in education. Targets to be set for this purpose
Research and innovation in higher education must be
encouraged with crosslinkages between institutions and
industry

Energy
Commercialenergydemandwillincreaseat
7%p.a.ifGDPgrowsat9%.Thiswillrequirea
majorsupplysideresponseandalsodemand
management
Energypricingisamajorissue.Petroleumand
Coalpricesaresignificantlybelowworldprices
andworldpricesareunlikelytosoften.

Somesectorsshouldbegivenspecialattentionbecausethey
contributemosttoourobjectives
e.g.Createlargeemployment:textilesandgarments,leatherand
footwear; gems and jewellery; food processing industries
Deepentechnologicalcapabilities:
Machinetools;IThardwareandelectronics

Providestrategicsecurity:
g
y
telecomequipment;aerospace;shipping;defenceequipment

Capitalequipmentforinfrastructuregrowth:
Heavyelectricalequipment;Heavytransportandearthmoving
equipment

Sectoralplansarebeingpreparedforeachoftheabovewith
involvement of industry associations and the concerned Ministries

Health
Better health is not only about curative care, but about better
prevention, Clean drinking water, sanitation and better
nutrition, childcare, etc. Convergence of schemes across
Ministries is needed.
Expenditure on health by Centre and States to increase from
1.3% of GDP to at least 2.0%, and perhaps 2.5% of GDP by end
of 12th Plan
Desperate shortage of medical personnel. Need targeted
approach to increase seats in medical colleges, nursing colleges
and other licensed health professionals
Health insurance cover should be expanded to all
disadvantaged groups
Focus on women and children; ICDS needs to be revamped

1. PowerSectorIssues
We must set a target of 100,000 MW capacity in
12th Plan (against achievement of 50,000 MW in
Eleventh Plan)
Coal availability will be a major constraint
Hydropower development seriously hindered by
forest and environment clearance procedures.
Himalayan States complain strongly.
Electricity tariffs not being revised to reflect rising
costs. Regulators are being held back from
allowing justified tariff increases.

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2. OtherEnergySources

Energy:Targets

Nuclear power programme must continue with

necessary safety review.
Solar Mission is seriously underfunded.
Need longer term energy solution for cooking in
rural areas. Expand LPG network (with cash
subsidy for the deserving, not subsidized prices).
Also use off grid solar and biomass energy
Wind power development, including off shore
wind power, needs to be encouraged

UrbanDevelopment
Indias urban population is expected to increase from 400
million in 2011 to about 600 million or more by 2030
Critical challenges are basic urban services especially for the
poor: water, sewerage, sanitation, solid waste management,
affordable housing,
housing public transport
Investment required in urban infrastructure is estimated at
`60 lakh crore over the next 20 years
We need to develop and propagate innovative ways of
municipal financing, through PublicPrivate Partnerships
(PPPs)
Land management strategies key for good urban
development as well as financing urban infrastructure
development

Infrastructure
Railways Western and Eastern Dedicated Freight Corridors must
be completed by the end of the Twelfth Plan
High Speed Rail link between DelhiMumbai and DelhiKolkata in
the Twelfth Five Year Plan
Complete the linkages between the ports and the existing road
and rail network. Need to deepen existing ports. Increase
bulk/container capacity
Ensure sufficient provision for maintenance of the alreadybuilt
roads
Invest in unified tolling and better safety on highways
Improve bus services/public transport in smaller cities, towns
and districts.

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12th FiveYearPlan:
Sectoral ContributioninGDP
Comparedto11th Plan(20072012)

ResourceAllocationPrioritiesin12thPlan
Health and Education received less than projected in Eleventh Plan.
Allocations for these sectors have increased in 12th Plan
Health, Education and Skill Development together in the Centres
Plan have increased by 1.2 percent point of GDP
Infrastructure,, includingg irrigation
g
and watershed management
g
and
urban infrastructure, will need additional 0.7 percentage point of
GDP over the next 4 years
Use of PPP must be encouraged, including in the social sector, i.e.
health and education. Efforts on this front need to be intensified