Five Year Plan (FYP)

When India achieved Independence, our nation was facing various problems of economy,
agriculture, poverty, refuge crisis, illiteracy and lack of basic infrastructure, etc. in its national
development. On the other hand, its vast resources- agricultural and natural resources were
largely unexplored and unexploited. In that prevailing circumstance, planned economy was
most viable option to achieve rapid and balanced growth keeping the national priorities in
mind. The independent India so adopted a formal model of planning under the leadership of
our beloved Prime Minister Jawaharlal Nehru, inspired by planned economic development
model of Soviet Union. The Planning Commission of India was set up 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.
It was entrusted 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. Prime Minister Jawaharlal Nehru was the
first Chairman of the Commission. The FFYP was launched in April, 1951-56 and it was
continued to formulate planning till 2012-17. India had launched 12 FYP so far. Now, the
present NDA government has discontinued formation of five year plans after the 12 FYP.

An Overview of 12 Five Year Plans:

1. First Five Year Plan (1951-1956)

 It was based on the Harrod-Domar model.

 Its main objective was on the agricultural development of the country.
 Growth Target 2.1% and achieved growth rate of 3.6%.

2. Second Five Year Plan (1956-1961)

 It was based on the P.C. Mahalanobis Model.

 Its main focus was on the industrial development of the country.
 Target growth rate 4.5% GDP and achieved growth rate 4.3% GDP.

3. Third Five Year Plan (196-1966)

 It was called ‘Gadgil Yojna’ also.

 Target growth 5.6% GDP and achieved growth 2.8% GDP
 The main target of this plan was to make the economy self-reliant and self-generating
to reach self active position of take off.
 Due to china war, this plan could not achieve its growth target of 5.6%

4. Fourth Five Year Plan (1969-1974)

 There were two main objective of this plan i.e. growth with stability and progressive
achievement of self reliance.
  During this plan the slogan of “Garibi Hatao” is given during the 1971 elections by
Indira Gandhi.
 Target Growth rate 5.7% GDP and achieve growth rate of 3.3% GDP.

5. Fifth Five Year Plan (1974-1979)

 In this plan top priority was given to agriculture, and then to industry and mines
 Overall this plan was successful which achieved the growth of 4.8% GDP against the
target of 4.4% GDP.
 The draft of this plan was prepared and launched by the D.P. Dhar. This plan was
terminated in 1978.

6. Sixth Five Year Plan (1980-1985)

 The basic objective of this plan was poverty eradication and technological self
reliance.
 It was based on investment yojna, infrastructural changing and trend to growth model.
 Its growth target was 5.2% GDP but it achieved 5.7% GDP.

7. Seventh Five Year Plan (1985-1990)

 Objectives of this plan include the establishment of the self sufficient economy,
opportunities for productive employment.
 For the first time the private sector got the priority over public sector.
 Its growth target was 5.0% GDP but it achieved 6.0% GDP.

8. Eighth Five Year Plan(1992-1997)

 In this plan the top priority was given to development of the human resources i.e.
employment, education, and public health.
 Duing this plan Narasimha Rao Govt. launched New Economic Policy of India.
 This plan was successful and got annual growth rate of 6.8% GDP against the target
of 5.6% GDP.

9. Ninth Five Year Plan (1997-2002)

 The main focus of this plan was “growth with justice and equity”.
 It was launched in the 50th year of independence of India.
 This plan failed to achieve the growth target of 7% GDP and grow only at the rate of
5.6% GDP.

10. Tenth Five Year Plan (2002-2007)

 This plan aims to double the per capita income of India in the next 10 years.
 It aims to reduce the poverty ratio 15% by 2012.
 Its growth target was 8.0% GDP but it achieved only 7.2% GDP.

11. Eleventh Five Year Plan (2007-2012)

  It was prepared by the C. Rangarajan.
 Its main theme was “faster and more inclusive growth”
 Its growth rate target was 8.1% GDP but it achieved only 7.9% GDP.

12. Twelfth Five Year Plan (2012- 2017)

 Its main theme is “Faster, More Inclusive and Sustainable Growth

 Target growth rate target is 8% GDP.

All the Five Year Plans had different objective, priority and techniques of planning.
However, they shared common objectives of economic growth, national self-reliance,
employment and promotion of social justice- removal of poverty and reduction of inequalities
in income and wealth. Amongst these 12 FYP, the initial FYPs were very important because
they played significant role on the launching of Indian development in the preceding years. In
other words, the First FYP was focused on the development of primary sector with a budget
of Rs. 2350 crore (revised) distributed among seven sectors: irrigation and energy (27.2%),
agriculture and community development (17.4%), transport and communications (24%),
Industry (8.4%), social services (16.6%), rehabilitation of landless farmers (4.1%), services
and other services (2.5%) whereas the second FYP gave rapid industrialisation- heavy and
basic industries. During those initial years of planning, five Indian Institutes of Technology
(IIT), the Tata Institute of Fundamental Research, and Atomic Energy Commission of India,
etc. were established. Moreover, many irrigation and hydroelectric projects including the
Bhakra Dam and Hirakud Dam were initiated, five steel mills at Bhilai, Durgapur, and
Rourkela were initiated. Coal production was increased. More railway lines were added in the
north east. The National Income was increased by about 18%, overall agricultural production
increased 17%, and millions of acres of agricultural land were brought under irrigation.
Besides, National Extension services and community projects, started for the first time in
1952, were extended to cover about 25% of the country by 1955-56. The cooperative
movement spread itself to 1,20,000 villages covering about 25% of the population of the
country. There is no doubt that the present NDA Government though abolished Planning
Commission and discontinued FYP, the role of Planning Commission and its economic
planning cannot be easily ignored in achieving secular and independent modern India.

Subarta Singh

Reference
1. Five Year Plans available at
mospi.nic.in/sites/default/files/...year.../Five%20Year%20Plan%20writeup_0.pdf
retrieved on 6.7.2018.
2. Planning Commission, Government of India: Five Year Plans available at
http://planningcommission.gov.in/plans/planrel/index.php?state=planbody.htm
retrieved on 6.7.2018.
3. Planning Commission, Government of India: History available at
http://planningcommission.gov.in/aboutus/history/index.php?about=aboutbdy.htm
retrieved on 6.7.2018.