ECONOMIC

PLANNING
AND DEVELOPMENT
Prof. Hanumant Yadav

Prof. H. Yadav, HNLU

MEANING OF ECONOMIC
PLANNING
Direction of the Economy by a Central
Authority for the purpose of
achieving definite targets and
objectives within a specified time.

Prof. H. Yadav, HNLU

Process of Economic Planning

1.
2.
3.

4.

Formulation of Plan
Direction of Plan
Monitoring and Concurrent
Evaluation of Plan
Post Evaluation of Plan
Prof. H. Yadav, HNLU

Process of Formulation of Economic

Plan
1.
2.

3.
4.
5.

Survey of present Status of Economy.

Study of trend of growth in different
sectors
Identifications of Problems
Inventory of Resources
Setting up Goals and targets
Prof. H. Yadav, HNLU

Formulation of Economic Plan

6. Study of Gaps between existing status
and targets
7. Strategy and Schemes to fill in the Gaps
8. Estimation of Resources Requirement
9. Mobilization of Resources

Prof. H. Yadav, HNLU

Aims of Indian Planning

Economic Development.
It comprises Economic Growth with Social
Justice in the framework of mixed economy.
Economic Growth with Removal of Poverty
and raising the standard of living

Prof. H. Yadav, HNLU

Objectives of Indian Planning :

Economic Growth
2. Social Justice
3. Creation of Employment Opportunities
4. Self Reliant Economy
5. Modernization of Economy
6. Other objectives
1.

Prof. H. Yadav, HNLU

Objectives of Indian Planning

Social Justice :
I- Removal Poverty
2- Reduction of Inequality of Income and wealth
Self Reliant
India was dependent on foreign countries on
three respects
1. Food grains 2. Machinery and other capital
goods 3. Foreign capital

Prof. H. Yadav, HNLU

Objectives of Indian Planning

Modernization
Advancement of technology:
Institutional innovations (IDBI, RRB)
Other Objectives
Stabilization of Population by Welfare
measures
Curbing the Inflationary trend of Prices
Prof. H. Yadav, HNLU

Plan Outlays (1951-2002)

Five Year Plan

Total
Outlay

(Rs. Crore)

Public sector Actual public

outlay
sector outlay

First Plan (1951-56)

3,870

2,070

1,960

Second Plan (1956-61)

7,900

4,800

4,600

Third Plan (196-66)

11,600

7,500

8,500

Fourth Plan (1969-74)

24,880

15,900

15,900

Fifth Plan (1974-79)

53,410

37,250

39,430

Sixth Plan (1980-85)

158,710

97,500

109,290

Seventh Plan (1985-90)

348,150

180,000

218,730

Eighth Plan (1992-97)

871,000

434,100

485,460

Ninth Plan (1997-2002)

2303,200
Prof. H. Yadav, HNLU

859,200

705,820
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Growth Performance in Five Year Plans

Target

Achievement
( NNP %
per annum)

First (1951-56)

2.1

3.6

Second (1956-61)

4.5

4.1

Third

(1961-66)

5.6

2.8

Fourth (1969-74)

5.7

3.3

Fifth (1974-79)

4.4

4.8

Sixth (1980-85)

5.2

5.7

Seventh (1985-90)

5.0

6.0

Eighth (1992-97)

5.6

6.8

Ninth (1997-2002)

6.5

5.4

Prof. H. Yadav, HNLU

11

Approach : First and Second Plan

First Plan : This Plan attempted a process of

all-round balanced development which could
ensure a rising national income and a steady
improvement in the living standards of the
people over a period of time.
Second Plan : This plan aimed at rapid
industrialization with particular emphasis on the
development of basic and heavy industries.
Prof. H. Yadav, HNLU

12

Approach in Third and Fourth Plan

Third Plan : It set its goal the establishment of

self-reliant and self-generating economy. Due
to war with China & Pakistan the approach
later shifted to defense & development.
Fourth Plan : Its goal was growth with stability
and progressive achievement of self-reliance. It
also aimed at providing of national minimum
for the weaker sections of community.
Prof. H. Yadav, HNLU

13

Fifth and Sixth Plan

Fifth Plan : The two main objectives were :

Removal of Poverty and attainment of selfreliance through promotion of higher rate of
growth and step up in domestic savings.
Sixth Plan : The aim was to directly attack
on problem of poverty by creating conditions
of an expanding economy.
Prof. H. Yadav, HNLU

14

Seventh and Eighth Plan

Seventh Plan (1985-90): In seventh Plan emphasis

was on those policies and programmes which
accelerated the growth in food production, increase
employment opportunities and raise productivity.

Eighth Plan (1992-97) : With fiscal and

other economic reforms Eighth Plan
attempted to accelerate economic growth and
improve the quality of life of common man.
Prof. H. Yadav, HNLU

15

NINTH PLAN ( 1997-2002)

The focus of Ninth Plan was to focus growth

with social justice and equality.
It assigned priority to agriculture and rural
development with a view to generating
adequate productive employment and
eradication of poverty.
The approach of the plan was also to ensure
food and nutritional security.
Prof. H. Yadav, HNLU

16

Tenth Plan Targets

( Monitorable Targets )

1.

Economic Growth : Target

8.0 % p.a.
(Achievement in IX Plan 5.4 % p.a.)

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Performance
IX Plan

a) Agriculture
b) Industry
c) Services

2.06

4.0
4.51
7.78
Prof. H. Yadav, HNLU

Targets
X Plan

10.0
10.0
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Tenth Plan Monitorable Targets

2. Reduction of poverty ratio by 5 %
22 crore persons ( 19.3 % to total
population) below poverty line by 2007.
3. Providing gainful and high-quality
employment to 50 million persons thus
bringing down unemployment rate from 9 %
(2001-02) to 5 % (2006-07)
Prof. H. Yadav, HNLU

18

Tenth Plan Monitorable Targets

All children in school by 2003 so that they
complete 5 years of schooling by 2007
In 2002 out of 20 crore only 12 crore (66 %
of total ) children were in schools
5. Reduction in gender gaps in literacy and
wage rates by 50 %.
4.

Prof. H. Yadav, HNLU

19

Tenth Plan Monitorable Targets

6.

7.

8.

Reduction of decadal rate of population

growth between from 1.96 % in last decade
(1991-2001) to 1.62 % (2001-2011)
Increase in Literacy rate from 65 % to
75 % during the Plan period.
Reduction of Infant Mortality rate (IMR) to
45 per 1000 live births.
Prof. H. Yadav, HNLU

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Tenth Plan Monitorable Targets

9.

10.
11.

12.

Reduction of Maternal Mortality Rate

(MMR) to 2 per 1000 births by 2007.
Increase in forest and tree cover to 25 %
All villages to have sustained access to
potable drinking water by 2007.
Cleaning of all major polluted rivers by
2007.
Prof. H. Yadav, HNLU

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Statewise Growth rates

IX Plan achievement & X Plan Targets
States

IX Plan
Achievement

X Plan
Target

-------------------------------------------------------------------------------------------------------------------------------------

1.
2.
3.
4.
5.

Andhra Pradesh
Bihar
Gujrat
Madhya Pradesh
Maharashtra

4.6
4.0
5.2
4.0
4.7
Prof. H. Yadav, HNLU

6.8
6.2
6.3
7.0
7.4
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Statewise Growth rates

IX Plan achievement & X Plan Targets
6. Orissa
7. Punjab
8. Uttar Pradesh
9. West Bengal
10. Chhattisgarh

5.1
4.4
4.0
6.9
-

Prof. H. Yadav, HNLU

6.2
6.4
7.6
8.8
6.1

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Ninth Plan Achievements and

Tenth Plan Targets
Achievement Target
IX Plan
X Plan
------------------------------------------------------------------------------1.
Domestic Saving Rate-GDP (%)
23.31
26.84
2.
Current Account Deficit-GDP (%) 0.91
1.57
3.
Investment Rate (%)
24.23
28.41
4.
Incremental Capital Output Ratio
(ICOR )
4.53
3.58
5.
Export Growth Rate % pa
6.91
12.38
6.
Import Growth Rate % pa 9.80
17.13
Prof. H. Yadav, HNLU

24

Tenth Plan outlay & Expenditure ( Rs. Thousand crore)

Sector

Outlay

Expenditure

Agriculture & Allied activities

Rural Development
Special Area Programme
Irrigation & Flood Control
Sub-total (A, R, S, I)
Energy
Industry & Minerals
Transport & communication
Science, Technology & Environment
General Economic Services
Social & General Services

Total

Prof. H. Yadav, HNLU

25

Accomplishment of 55 Years of
Economic Planning in India
1.
2.
3.

4.
5.

Initiation of the process of growth

Development of Infrastructure
Development of basic and capital goods
industries
Agrarian reforms and green revaluation
Growth of the public sector

Prof. H. Yadav, HNLU

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