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From the beginning of 1947, India is underlined with economic planning for every five years. Economic planning for a country is important to ensure the development and growth of the country. The first economic plan named the first five-year plan was launched in India in the year 1951. Every five-year plan is generally developed and governed by the Planning commission of India.
Five-year plans are imposed in accordance with the economic programs under the Indian Economy. Every economic plan has some specific rules and objectives to contribute to and facilitate the Indian Economy from different aspects. In this context, the basic objective of the fifth five-year plan is to focus on the country’s employment and reduce poverty and provide justice. In a further study, the purpose and significance of the fifth five-year plan are elaborated to determine its contribution to the Indian Economy.
Economic planning and Indian economy
The economy is a significant part of any country that helps to improve the country’s GDP directly or indirectly. Hence to ensure the growth and development of the Indian Economy proper planning is required. Under the Indian Economy, the constitution of economic planning came into action on January 26, 1950. Economic planning for the Indian Economy refers to the long-term plans proposed by the government to target the development of the country in coordination with the country’s resources.
India is holding 6th position in the world as the largest nominal economy. Furthermore Indian Economy has achieved 3rd position worldwide as the largest “Purchasing Power Parity” country.
Hence it is needless to say that the five-year basis of economic planning has an immense contribution to these achievements. Every economic planning strategy to facilitate the Indian Economy has been implemented with some focused objective that helps the government to achieve some particular result. However, behind all the different economic planning some common objectives are followed. These are some long-term objectives to facilitate the overall growth of the Indian Economy.
Economic planning is primarily focused to promote an increasing growth rate to upgrade the standard of living of the Indian residents.
To maintain a stable economy for profitability.
Establishing a self-reliant economy.
A standard and unified economy helps to provide social justice and hence it also helps to maintain equality in society. Since the Indian Economy belongs to a mixed economy proper economic planning is required to decrease the inequality in every economic standard.
Apart from all these above-mentioned objectives, economic planning also helps to modify the Indian economy by making it flexible.
Overview on the fifth five-year plan under economic planning
In the fifth five-year plan the Planning commission has predicted expenses especially in the public sector, as the basic purpose was to facilitate employment to attenuate poverty. The main focus of the fifth five-year plan is to increase production in the agricultural sector. Different methodology has been followed to accelerate the production process of food grains, sugar cane, jute, and Mesta. Some physical programs have been implemented to improve performance. Under the fifth five-year plan the government has expected a particular outcome from the production process. The expected irrigation from the total production process is expected at 13 million hectares, where 5.8 million was expected from medium and major products and 7 million from the minor production.
Objectives of fifth five-year plan
The fifth five-year plan was intended to reduce poverty by emphasizing self-reliance.
The fifth five-year plan was majorly focused on employment, agricultural production, justice, and defense.
The achievement in the growth rate is 4.4% where the target was 4.8% leading the plan to one of the most successful economic planning in the Indian Economy.
Facts of fifth five-year plan
During the fifth five-year plan “The Electricity Supply Act was revised in the year 1975.
In the same year 1975 “the twenty point program” came into action.
Along with that “Indian National Highway System” and “MNP” (“Minimum Needs Programme”) were also introduced by the Indian government.
Under the fifth five-year plan the “Garibi Hatao” slogan by the “Indian National Congress” has played a significant role in the election.
Conclusion
According to the current report published by the Union budget 2022-23, the poverty rate of India is 25.01% of its population. This calculation has been done based on the multidimensional poverty that the Indian population faces. Hence the Indian Economy needs to develop a proper strategic economic plan to address all these reasons that cause multidimensional poverty. The fifth five-year plan was proposed to address the alleviation of poverty by engaging the employment rate. Thus it is one of the significant economic plans in respect to the Indian economy. In the discussion the various aspects of the fifth five-year plan such as its importance, objectives have been discussed to provide knowledge from the view of the Indian Economy.
