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Five Year Plans Growth And Review Lesson-1 Presented By: Roman Saini
In This Lesson Five Year Plans Introduction History of Planning in India Origin of Five Year Plans
Five Year Plans Indian planning is an open process. Much of the controversy and the debates that accompany the preparation of the plans are public . The initial aggregate calculations and assumptions are either explicitly stated or readily deducible, and the makers of the plans are not only sensitive but responsive to criticism and suggestions from a wide variety of national and international sources. . .From original formulation through successive modifications to parliamentary presentation, plan making in India has evolved as a responsive democratic political process and the culmination of the same in the final document is an impressive manifestation of the workings of an open society. .But by its very nature it also generates many problems from the point of view of mapping an optimal strategy for economic development.
Five Year Plans History of Planning in India: The central objective of planning in India during 1950s is to initiate a process of development which will raise living standards and open out to the people new opportunities for a richer and more varied life. . .The problem of development of an under developed economy is one of utilising more effectively the potential resources available to the community, and it is this which involves economic planning. .Economic planning has to be viewed as an integral part of a wider process aiming not merely at the development of resources in a narrow technical sense, but at the development of human faculties and the building up of an institutional framework adequate to the needs and aspirations of the people.
Five Year Plans The Directive Principles of State Policy enunciated in Articles 36 to 51 of the Constitution make it clear that the material resources of the country should be so distributed as best to subserve the common good And that the operation of the economic system should not result in the concentration of wealth and economic power in the hands of a few. It is in this larger perspective that the task of planning has to be envisaged.
Five Year Plans In the last four or five decades prior to independence, there had been considerable industrial development in India, accompanied by urbanisation and expansion of commerce Large towns and cities have grown and transport and communications have developed extensively. Indian enterprise has made considerable headway, and the country has now considerable experience in the fields of modern business, industry and finance. . New economic and social relations have emerged, giving rise in turn to a general desire for more rapid change. .But the development that has taken place was partial and limited when judged in terms of the country's needs and potentialities.
Five Year Plans Industrialism and the use of modern techniques have affected only limited segments of the economy. . Agriculture was still the mainstay of life for about 70 per cent of the population, and productivity in this sector is exceedingly low. The size of agricultural holdings has progressively diminished. The old cottage and small-scale industries have been decaying, and the rural population which constitutes about 83 per cent of the total suffers from chronic underemployment and low incomes. Population has increased by more than fifty per cent in the last fifty years (1900-50), but the growth of alternative occupations either in the rural areas or in the towns has not been on a scale which could absorb this growing population.
Five Year Plans In the limited spheres which have registered expansion, the level of productivity and the level of incomes have naturally been higher. But, for the community as a whole, the economic development of the last few decades prior to independence has brought no significant improvement in standards of living and opportunities for employment, and has perhaps accentuated to some extent inequalities of income and wealth
Five Year Plans Origin of Five Year Plans: Though the planned economic development in India began in 1951 with the inception of First Five Year Plan, theoretical efforts had begun much earlier, even prior to the independence. .Setting up of National Planning Committee by Indian National Congress in 1938, The Bombay Plan & Gandhian Plan in 1944, Peoples Plan in 1945 (by post war reconstruction Committee of Indian Trade Union), Sarvodaya Plan in 1950 by Jaiprakash Narayan were steps in this direction. Five-Year Plans (FYPs) are centralized and integrated national economic programs. Joseph Stalin implemented the first FYP in the Soviet Union in the late 1920s. Most communist states and several capitalist countries subsequently have adopted them
Five Year Plans .China and India both continue to use FYPs, although China renamed its Eleventh FYP, from 2006 to 2010, a guideline (guihua), rather than a plan (jihua), to signify the central government's more hands-off approach to development. .After independence, India launched its First FYP in 1951, under socialist influence of first Prime Minister Jawaharlal Nehru. The process began with setting up of Planning Commission in March 1950 in pursuance of declared objectives of the Government, To promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country O Increasing production and offering opportunities to all for employment in the service of the community.
Five Year Plans .The Eighth Plan could not take off in 1990 due to the fast changing political situation at the Centre and the years 1990-91 and 1991-92 were treated as Annual Plans. .The Eighth Plan was finally launched in 1992 after the initiation of structural adjustment policies. For the first eight Plans the emphasis was on a growing public sector with massive investments in basic and heavy industries, .But since the launch of the Ninth Plan in 1997, the emphasis on the public sector has become less pronounced and the current thinking on planning in the country, in general, is that it should increasingly be of an indicative nature.