Second Five Year Plan of India

What are the Five Years Plan?

The Indian economy seems to have been built upon the planning strategy between 1947 to 2017. This has been carried out throughout the Planning Commission’s periodic objectives as well as the NITI Aayog’s Five Year Plans, which were established, implemented, as well as analyzed during its tenure. The commission seems to have a designated deputy chairman who seems to be a cabinet minister and the current prime minister acting as chairman.

The Twelfth Programme came to an end in March 2017. Before the Fourth Plan, public funds were based primarily upon conceptual principles instead of a clear and logical system, leading to the creation of the Gadgil method in 1969. Since then, modified variations of the method are often used to provide central aid for government programmes. The new administration formed by Narendra Modi, appointed as prime minister in 2014, officially declared the abolition of the Planning Commission as well as announced the establishment of the NITI Aayog. This research institute is also known as the National Institution for Transforming India.

Goals and Achievements of the Five-Year Plan:

• Regulating the demographic.
• Increasing employment opportunities by putting agricultural as well as rural development first.
• Poverty reduction.
• Ensuring that the impoverished have adequate access to food as well as water.
• Primary health care facilities, as well as other bare essentials, seem to be commonly accessible.
• Every child in India has the right to 

receive basic or primary education.

Achievements And Notes On Five Year Plan

1st five-year plan:

Jawaharlal Nehru, who was appointed as India’s first prime minister, introduced the First Five Year Plan in the Indian Parliament, which required immediate consideration. In 1951, the very first five-year plan seemed to have been implemented, focusing primarily on the growth and improvement of the primary sector. The plan had a few modifications as it was based on the Harrod–Domar model.

Jawaharlal Nehru seems to have been the president supervising this five-year plan, while Gulzarilal Nanda was appointed as the vice-president. The first five-year plan’s slogan was Agricultural Advancement, as well as the goal was to address many issues that happened as a result of the country’s division as well as the Second World War. This plan’s objective was to stabilize the country following independence. Another primary objective seems to have been to construct the country’s industrial and agricultural growth framework.

Five Indian Institutes of Technology were established as vital scientific institutes for the betterment of the population at the end of the five-year plan phase around the year 1956. The University Grants Commission, also referred to as UGC, was established to oversee financing accommodations as well as to take steps for the promotion of higher education within the country. Contracts have been made to establish five steel mills within the mid-phase of the Second Five-Year Plan. The plan turned out to be semi-effective for the government.

Second five-year plan:

The Second Plan prioritized public sector expansion as well as rapid industrialisation. The design was based mainly on the Mahalanobis model, which was devised around 1953 with the guidance of an Indian statistician Prasanta Chandra Mahalanobis. So to optimize long-run economic growth, the strategy aimed to find the best area for investment amongst profitable areas or sectors. It made use of well-developed research operations and performance analysis and unique applications based on statistical models devised by the Indian Statistical Institute. The strategy anticipated a functioning economy, with capital goods import serving as the primary source of trading growth. Since the Second Five-Year Plan, there has also been a concerted effort to improve primary as well as capital goods sectors.

The overall money allotted under the Second Five Year Plan was approximately 48 billion in Indian currency in India. This sum was divided across several domains, including electrical as well as agricultural sectors. The social services, telecommunications and transportation, and other sectors also got funded. The second strategy called for a time of increasing the overall costs. The significant growth in numbers hampered the development of income per capita. A currency crisis also hit the country.

Conclusion

The article briefly explains the five-year plan model and its roles and objectives. These roles and objectives are crucial to every country as they help manage the economy and budgets regarding the activities of the government in power. The article also touches on key points such as the first and second five-year plan model that was implemented and its repercussions on other five-year plan models from the beginning of independence to the current age.