Five Year Plan in India

Five year plans in India Goals and Achievements: The Five-Year Plans were national economic programmes that were centralized and integrated. Joseph Stalin implemented the first such plan in the Soviet Union in 1928. China, Bhutan, Vietnam, South Korea, Argentina, Romania, and Ethiopia have all established Five-Year Plans since then. The Commission was tasked with improving the country’s standard of living by properly allocating resources, increasing output, and ensuring that everyone has access to work opportunities.

The plan was based on the Harrod–Domar model, which claimed that growth was dependent on two factors. It was drafted by economist K.N. Raj. Firstly, a high level of savings, which allowed for more investment, and secondly, a low capital-output ratio, which allowed for more efficient investment and a higher growth rate.

Five Year Plans in India: Preparing for our future through planning may be a crucial landmark whether at a private level or national level. The social life of an individual always depends on various planning schemes. Social and economic planning gives how to policymakers to enhance prevailing conditions during a society. This process is incomplete if there are not any positive outcomes. A serious part of such planning relies on FIVE YEAR PLANS.

Socio-economic scenario after Independence:

India faced various political, social and economic disrupts after independence. India’s agriculture sector was so backward during independence. The extent of productivity was extremely low with high vulnerability. Features just like the Zamindari System, low self-consumption from agriculture gains led to the hamper of the economy. On the other side, our industries were also facing vulnerability and discrimination. The demographic profile of the population was so unbalanced. There have been situations like low birth rate, high death rate low rate of literacy, high infant death rate than on.

The idea of Economic Planning:

Problems of macro-level are never solved with automatic demand and the consequent providing forces. The intervention of state with various policies, programs, and schemes is clearly crucial for society. After independence, there was a requirement for correct economic getting to promote growth and development. Economic Planning was a step taken by the Indian Government to plan the use of resources to realize a well-defined target during a specific period. The concept was adopted from Russia (USSR).

Objectives:

While talking about the goals of economic planning, we will divide these goals on the basis of time. Certain goals to be accomplished within that time period are GDP Growth, the highest level of employment, equal distribution of resources, promotion of equitable distribution to uplift poor sections, make people self-sufficient and modernization in all respects. While in this brief period we will include things like price stability, education promotion, and better health care, and so on. These plans are developed and executed by NITI Aayog  then approved by National Development Council (NDC).

Achievements of Five Year Plans in India.

• A better Growth Rate: Economic planning in India aims at bringing a few rapid economic developments altogether sectors. That is to mention, it aims at a better rate of growth. Performance of India’s macroeconomic has been only better regarding GDP growth rates. The overall rate of growth is 4.8% for the entire planning period (1950-2007) compared with India’s own past (1900- 1920).
• Growth of Economic Infrastructure: India’s performance in the build-up the required economic infrastructure is basically praiseworthy. India has now quite 3 million km of road network, making it one among the most important within the world. Railway route length increased from 53,596 km in 1951 to just about 63,500 km in 2005- 06. Today, the Indian railway is the largest in Asia and therefore the fourth largest within the world. Similarly, other modes of transport including civil aviation, shipping, etc., have also expanded.
• Development of Basic and Capital Goods Industries: Another major area of the success of Indian planning is that the growth of basic and capital goods industries.
• Higher Growth of Agriculture: The most significant aspect of India’s Five Year Plans is that the general rate of growth of food production has now exceeded the speed of growth of population. Though within the early years of designing, agricultural performance was miserable leading to the emergence of the food crisis. But now, thanks to the impact of biochemical revolution in Indian agriculture, the food crisis seems to be a thing of the past. It has attained self-sufficiency in food grains.
• Savings and Investment: The rise within the domestic savings rate from 10 p.c. of GDP at the initial stages of designing to around 19 p.c. in 1980-81 is certainly impressive. However, this rate increased to 34.8 p.c. by March 2007.

Related articles:

Advantages and disadvantages of multi-purpose river projects

Migration and its costs and benefits

Rural Development in India

Institutional weaknesses in Indian agriculture

Importance of Rivers

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