Five years plans and economic planning in India

Five-Year Plans (FYPs) are national economic programmes that are controlled and integrated. In 1928, Joseph Stalin implemented the Soviet Union’s first Five-Year Plan. They have since been adopted by the majority of communist regimes as well as a number of capitalist countries. China continues to employ FYPs, albeit the Eleventh FYP was dubbed a guideline (guihua) rather than a plan (jihua) from 2006 to 2010, to reflect the central government’s less hands-on approach to development. Under the socialist influence of India’s first prime minister, Jawaharlal Nehru, India established its First FYP in 1951, shortly after independence.

History of five year plans in India

Though India’s plans  for the  five years, they are linked to a long-term perspective. The Sino-Indian War (1962), the Indo-Pak War (1965), and the unprecedented drought in the mid-1960s forced the Fourth Five Year Plan to take a “plan holiday.” During the period 1966-1969, instead of a regular Five Year Plan, planning was discontinued through three ad hoc Annual Plans.

Again, with the Janata Government’s assumption of power in 1977, a rolling plan on a year-to-year basis, or the Sixth Plan, was formulated for the period 1978-83.

The Congress (I) Government continued this rolling plan concept much earlier than planned in 1980, and the Sixth Plan went into effect in 1980 and lasted until 1985. The Eighth Five Year Plan, scheduled for 1990-95, could not be launched due to an unprecedented political crisis in New Delhi and frequent changes of power.

What is a Planning Commission in India?

The Indian government established the Planning Commission in 1950. As a result, it lacks statutory status as a result of either a provision in the Constitution or an Act of Parliament. Nonetheless, it grew to be more than a ministry over time, and at times appeared to be a parallel government. The prime minister has always been its chairman, but in practise, the deputy chairman has been in charge of planning. 

The finance minister is an ex-officio member of the commission, and other ministers have been appointed members on occasion, depending on the importance of their departments at the time.

The commission’s original, primary function was to develop a five-year development plan. Planning was popular during India’s early years of independence, influenced by the Soviet Union’s experiment. 

The five-year plans captivated India’s prime minister, Pandit Nehru, as well as the Indian business community. The first “development plan” was a rudimentary effort by the business community, known as the Bombay Plan, to restore worn-out railway and industrial infrastructure.

Function of Planning Commission

The Planning Commission’s functions were outlined in the 1950 resolution that established it:

• Make an assessment of the nation’s capital, material, and human resources, including technical personnel, and investigate ways to improve these resources for national development.
• Create a strategy for the most efficient and effective use of the country’s resources.

Define the stages in which the Plan should be implemented and propose the allocation of resources for each stage’s completion.

• Identify the factors impeding economic development and determine the conditions that, in light of the current social and political situation, should be put in place to ensure the Plan’s successful implementation.
• Determine the type of machinery required to successfully execute each stage of the Plan in all of its aspects.
• Regularly assess the progress made in implementing all stages of the Plan and propose any policy or measure changes or recommendations.

Successful five year plans in India

Since independence, there are twelve five year plans till launched in india. With every new five year plan, India had to face some major or some adaptive changes as well. People of India always witness something new with every five year plan. 

According to many media reports, the eleventh five year plan launched between 1992 to 1997 under the prime ministership of Mr. P.V. Narsimha Rao was the most successful five year plan in india. Moreover,The Sixth Five-Year Plan was a great success to the Indian economy. The target growth rate was 5.2% and the actual growth rate was 5.7%.

However, some plans could not succeed as per expectations but it could stand by in tough times. Fourth five year plan of Indira Gandhi’s period is an example. The Fourth plan had an aim of 5.5% growth as the previous plans had a growth target achievement of maximum 3.5%. But only 3.4% growth could be achieved

Conclusion

History of five year plans in India: Though India’s plans are for the next five years, they are linked to a long-term perspective. The Sino-Indian War , the Indo-Pak War , and the unprecedented drought in the mid-1960s forced the Fourth Five Year Plan to take a “plan holiday”. Again, with the Janata Government’s assumption of power in 1977, a rolling plan on a year-to-year basis, or the Sixth Plan, was formulated for the period 1978-83. The commission’s original, primary function was to develop a five-year development plan. The five-year plans captivated India’s prime minister, Pandit Nehru, as well as the Indian business community. 5 percent per year during the “13th Five-Year Plan,” and that GDP per unit of energy use should fall by 15%.