P. V.

Narasimha Rao, Chairman Pranab Mukherjee, Deputy Chairman Manmohan Singh, Member Sharad Pawar, Member Balram Jakhar, Member H.R. Bhardwaj, Member Chitra Naik, Member D. Swaminadhan, Member V. Krishnamurthy, Member C. Rangarajan, Member J. S. Bajaj, Member Jayant Patil, Member S. Z. Qasim, Member N. K. Sengupta, Secretary

The Eighth Five Year Plan was launched with the backdrop of widespread changes which had altered the international social and economic order. The challenge was to effectively dovetail the market mechanism and planning so that they are complementary to each other To ensure that the infrastructure needed for economic development continued to grow during that transitional period. It is a Plan for managing the change, for managing the transition from centrally planned economy to market-led economy without tearing our socio-cultural fabric.

The Eighth Plan aims at an average annual growth rate of 5.6 percent and an average industrial growth rate of about 7.5 percent. These growth targets are planned to be achieved with relative price stability and a substantial improvement in the country's balance of payments position. It is envisaged that there will be a reasonable degree of price stability and that the ratio of current account deficit to GDP will he maintained at about 1.6 percent.

Generation of adequate employment to achieve near full employment level by the turn of the century

Containment of population growth through active people's cooperation and an effective scheme of incentives and disincentives
Universalisation of elementary education and complete eradication of illiteracy among the people in the age group of 15 to 35 years Provision of safe drinking water and primary health care facilities, including immunisation, accessible to all the villages and the entire population, and complete elimination of scavanging Growth and diversification of agriculture to achieve self-sufficiency in food and generate surpluses for exports Strengthening the infrastructure (energy, transport, communication, irrigation) in order to support the- growth process on a sustainable basis

Increase in employment level and decrease in poverty rate 6.78% GDP in an annual growth rate, which supersedes the expected 5.6% GDP. This has been supported by an average investment rate of 25 per cent of GDP, thereby yielding an ICOR of 3.7. Production of food increased to 176.22 million from 51 million which was a huge leap in comparison to the previous years. 10.1% was contributed by export earnings There has been a significant step-up in the domestic savings rate. Self sufficiency in agricultural production.

The rectification of certain flawed plans and policies were also done under this five year plan. During this period only India received a coveted opportunity to become a member of the World Trade Organization on January 1st 1995.

Yielding an ICOR of 3.7, which is significantly less than the figure of 4.1 that was assumed in the Eighth Plan calculations. Poor Social Development Poverty Alleviation Slow Banking Reforms Inadequate Infrastructure investment High Fiscal Deficit Fall in the Share of states in the Total Plan Insufficient participation of general public in general development