Objectives and Achievements of Five Year Plans

The Planning Commission was constituted in India in 1950. It was a non constitutional and advisory body. Jawaharlal Nehru was the first chairman and Gulsarilal Nanda was the first deputy chairman of the Planning Commission. It is headquartered at Yojana Bhavan. The planning commission is only an advisory body according to the 39th article of the constitution. India has modeled its Five Year Plans on the former Soviet Union. The Objectives and Achievements of Five Year Plans are explained below.

Objectives of Five Year Plans

A plan explains how a nation's resources should be utilized. The plan should have some general and specific objectives to be achieved within a specified period. In India, plans were implemented for a period of five years. Hence, they are known as five year plans. Five year plans are centralized and comprehensive national economic programs. Five year plans were started in 1951. The objective of five year plans is to devise national plans that are planned and organized for a period of five years, which will help in economic growth and social development. The Planning Commission designs and implements five year plans. The important objectives of five year plans are Economic Growth, Modernisation, Self-reliance and Equity.

1. Economic Growth

Economic growth refers to the increase in the country's capacity to produce goods and services. It is measured by the size of the productive capital stock, the extent of the supporting infrastructure such as banking and transportation, or the efficiency of the productive capital and services. Gross Domestic Product (GDP) is the market value of all goods and services produced within a country in a year. A steady increase in GDP is a good indicator of economic growth. The GDP of an economy is derived from the agricultural sector, the industrial sector, and the service sector. The contribution of these three sectors shapes the structure of the economy. In some countries, the agricultural sector contributes more to the growth of the GDP, while in others, the service sector is dominant.

2. Modernisation

Modernisation is the adoption of new technology. In traditional societies, women were forced to stay at home while men worked. However, modern societies utilize women's skills in workplaces (banks, factories, schools, etc.).

3. Self-reliance

A country can achieve economic growth and modernization by using its own resources or by using resources imported from other countries. The first seven Indian five year plans emphasized the self-reliance approach by eliminating imports of goods that can be manufactured in India.

4. Equity

Equality means ensuring that the benefits of economic prosperity are shared by the poor, rather than just the wealthy few. All Indians should be able to meet their basic needs such as food, decent housing, education, and health, and this should be achieved by reducing inequality in the distribution of wealth.

Achievements of Five Year Plans

The period of the First Five Year Plan in India was 1951 - 1956. The plan focused on the agricultural sector. During the First Plan, the Family Planning Scheme was started in India in 1952. The National Extension Service and Community Development Programme were also started during the First Plan. The Second Five Year Plan of 1956 - 61 focused on the industrial sector. The Third Plan of 1961 - 66 focused on transport, communication, food self-sufficiency and economic self-sufficiency. The Green Revolution in India began in 1965. C. Subrahmanyam was the Union Agriculture Minister. 'Plan Holiday' was implemented in India during 1966 - 69. The Fourth Five Year Plan of 1969-74 focused on sustainable growth and self-reliance. The Fifth Five Year Plan of 1974-79 focused on poverty alleviation. During the Janata government's rule, 'Rolling Plans' were implemented during the period 1978-80. The Sixth Plan of 1980-85 focused on improving the infrastructure of the agricultural and industrial sectors. The Seventh Five Year Plan of 1985-1990 focused on the energy sector, modernization and increase in employment opportunities. 'Annual Plans' were implemented in India during the period 1990-92. The Eighth Five Year Plan of 1992-1997 focused on human resource development. The Ninth Plan announced the objectives of rural development, decentralized planning, and growth with social justice and equity. The Tenth Five Year Plan (2002–2007) emphasized on increasing capital investment. The annual growth rate targeted by the Tenth Five Year Plan was 8 percent. The economic growth during this period was 7.8 percent. The Eleventh Plan (2007–2012) targeted a 10 percent growth in Gross Domestic Product (GDP). The objectives of the Twelfth Five Year Plan (2012–2017) were sustainable development, accelerated growth, and inclusive growth. The Five Year Plan was discontinued with the establishment of NITI Aayog on 1 January 2015, replacing the Planning Commission.