Friday, December 5, 2008

PLANNING COMMISSION

India Planning Commission has helped in the better utilization of the country's resources for the common good of the citizens. The Planning Commission is considered by many as the backbone of the country's progress and all-round development.

POSTING IS FROM PRESENT TO PAST

Share of public and private sectors in Gross Domestic Saving (Plan Period Average)

Area Yield and Input Use in Agriculture

Projected Production and Per Capita Consumption of Selected Agricultural Commodities

Target Growth Rate in Value of Output of Agriculture During the Ninth Plan and over the Perspective Period (in percentage)

Eleventh plan (2007-2012)

The eleventh plan has the following objectives:
1. Income & Poverty
o Accelerate GDP growth from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016-17
o Increase agricultural GDP growth rate to 4% per year to ensure a broader spread of benefits
o Create 70 million new work opportunities.
o Reduce educated unemployment to below 5%.
o Raise real wage rate of unskilled workers by 20 percent.
o Reduce the headcount ratio of consumption poverty by 10 percentage points.
2. Education
o Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12
o Develop minimum standards of educational attainment in elementary school, and by regular testing monitor effectiveness of education to ensure quality
o Increase literacy rate for persons of age 7 years or more to 85%
o Lower gender gap in literacy to 10 percentage points
o Increase the percentage of each cohort going to higher education from the present 10% to 15% by the end of the plan
3. Health
o Reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000 live births
o Reduce Total Fertility Rate to 2.1
o Provide clean drinking water for all by 2009 and ensure that there are no slip-backs
o Reduce malnutrition among children of age group 0-3 to half its present level
o Reduce anaemia among women and girls by 50% by the end of the plan
4. Women and Children
o Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17
o Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are women and girl children
o Ensure that all children enjoy a safe childhood, without any compulsion to work
5. Infrastructure
o Ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power.
o Ensure all-weather road connection to all habitation with population 1000 and above (500 in hilly and tribal areas) by 2009, and ensure coverage of all significant habitation by 2015
o Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012
o Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by 2016-17
6. Environment
o Increase forest and tree cover by 5 percentage points.
o Attain WHO standards of air quality in all major cities by 2011-12.
o Treat all urban waste water by 2011-12 to clean river waters.
o Increase energy efficiency by 20 percentage points by 2016-17.

Tenth Five Year Plan India (2002-2007)

The Tenth Five Year Plan India (2002-2007) aims to transform the country into the fastest growing economy of the world and targets an annual economic growth of 10%. This was decided after India registered a 7% GDP growth consistently over the last decade.

This GDP growth of 7% is much higher than the world's average GDP growth rate. Thus, the Planning Commission of India sought to stretch the limit and set targets which would propel India to the super league of industrially developed countries.

In a nutshell, the Tenth Five Year Plan India envisages -
• More investor friendly flexible economic reforms
• Creation of congenial investment environment
• Encourage private sector involvement
• Setting up state-of-the-art infrastructure
• Capacity building in industry
• Corporate transparency
• Mobilizing and optimizing all financial resources
• Implementation of friendly industrial policy instruments
Dimensions and strategies
1. Perspective, objectives and strategy
2. Macroeconomic dimensions
3. Public sector plan: resources and allocations.
4. External sector dimensions
5. Employment perspective
6. Governance and implementation
7. Disaster management: the development perspective
8. Policy imperatives and programmatic initiatives

Sectoral policies and programs:
I. Overview
II. Human and social development
1. Sectoral overview
2. Elementary education
3. Secondary education
4. Vocational education
5. Higher and technical education
6. Adult literacy and continuing education
7. Youth and sports
8. Health
9. Indian system of medicine and homeopathy
10. Family welfare
11. Women and children
12. Art and culture
III. The social net:
1. Sectoral overview
2. Poverty alleviation in rural India - strategy and programs
3. Food and nutrition security
4. Public distribution system
5. Labor welfare and social security
IV. Special groups:
1. Socially disadvantaged groups
2. Scheduled tribes
3. Other special groups
V. Agriculture and rural development:
1. Agriculture
2. Animal husbandry and dairy
3. Development of wastelands and degraded lands
4. Khadi and Village industries
5. Rural water supply and sanitation
VI. Urban development:
1. Urban development
2. Civic amenities in urban areas
VII. Industry and services:
1. Industry
2. Minerals
3. Energy
4. Information technology
5. Tourism
6. Real estate
7. Construction
8. Internal trade

VIII. Infrastructure:
1. Irrigation, flood control and command area development
2. Power
3. Transport
4. Information and broadcasting
5. Communications
IX. Forests and environment:
o Forests and environment
X. Science and technology:
o Science and technology
Vol. III: State plans trends, concerns, and strategies:
1. Introduction
2. Plan investments and financing
3. Development trends
4. Special area programs
5. Planning and implementation issues Concerns and strategies

Ninth Five Year Plan India (1997-2002)

Ninth Five Year Plan India runs through the period from 1997 to 2002 with the main aim of attaining objectives like speedy industrialization, human development, full-scale employment, poverty reduction, and self-reliance on domestic resources.
Background of Ninth Five Year Plan India:
The main feature of the Ninth Five Year Plan India is that at its onset our nation crossed the fifty years of independence and this called for a whole new set of development measures. There was a fresh need felt for increasing the social and economic developmental measures. The government felt that the full economic potentiality of the country, yet to be explored, should be utilized for an overall growth in the next five years. As a result in the Ninth Five Year Plan India, the emphasis was on human development, increase in the growth rate and adoption of a full scale employment scheme for all. For such development one needs to promote the social sectors of the nation and to give utmost importance to the eradication of poverty.
The Ninth Five Year Plan India looks through the past weaknesses in order to frame the new measures for the overall socio-economic development of the country. However, for a well-planned economy of any country, there should be a combined participation of the governmental agencies along with the general population of that nation. A combined effort of public, private, and all levels of government is essential for ensuring the growth of India's economy.
Objectives of Ninth Five Year Plan India:
The main objectives of the Ninth Five Year Plan India are:
• to prioritize agricultural sector and emphasize on the rural development
• to generate adequate employment opportunities and promote poverty reduction
• to stabilize the prices in order to accelerate the growth rate of the economy
• to ensure food and nutritional security
• to provide for the basic infrastructural facilities like education for all, safe drinking water, primary health care, transport, energy
• to check the growing population increase
• to encourage social issues like women empowerment, conservation of certain benefits for the Special Groups of the society
to create a liberal market for increase in private investments

comparision of five year plans

Eighth plan outlay :

Eighth Five Year Plan India (1992-1997)

Eighth Five Year Plan India runs through the period from 1992 to1997 with the main aim of attaining objectives like modernization of the industrial sector, rise in the employment level, poverty reduction, and self-reliance on domestic resources.
Background of the Eighth Five Year Plan India:
Just before the formulation of the Eighth Five Year Plan India, there was great political instability in India which hindered the implementation of any five years plan for the following two years after the Seventh Five Year Plan. This period is characterized by extreme FOREX reserve crisis and introduction of liberalization and privatization in Indian economy. To invite FDI in Indian industrial sector and to follow free market reforms were the only possible ways to revive the country from foreign debt.
Objectives of the Eighth Five Year Plan India:
The main objectives of the Eighth Five Year Plan India are:
• to prioritize the specific sectors which requires immediate investment to generate full scale employment
• to promote social welfare measures like improved healthcare, sanitation, communication and provision for extensive education facilities at all levels
• to check the increasing population growth by creating mass awareness programs
• to encourage growth and diversification of agriculture
• to achieve self-reliance in food and produce surpluses for increase in exports
• to strengthen the infrastructural facilities like energy, power, irrigation
• to increase the technical capacities for developed science and technology
• to modernize Indian economy and build up a competitive efficiency in order to participate in the global developments
• to place greater emphasis on role of private initiative in the development of the industrial sector
• to involve the public sector to focus on only strategic, high-tech and essential infrastructural developments
• to create opportunities for the general people to get involved in various developmental activities by building and strengthening mass institutions
Energy was given priority with 26.6% of the outlay. An average annual growth rate of 6.7%against the target 5.6% was achieved.

Seventh Five Year Plan India (1985-1989)

The Seventh Five Year Plan India was for the duration between 1985 and 1989 under the approval of the National Development Council in India.

The main objectives of the 7th five year plans were to establish growth in the areas of increasing economic productivity, production of food grains, and generating employment opportunities.

As an outcome of the sixth five year plan, there had been steady growth in agriculture, control on rate of Inflation, and favorable balance of payments which had provided a strong base for the seventh five Year plan to build on the need for further economic growth. The 7th Plan had strived towards socialism and energy production at large. The thrust areas of the 7th Five year plan have been enlisted below:
• Social Justice
• Removal of oppression of the week
• Using modern technology
• Agricultural development
• Anti-poverty programs
• Full supply of food, clothing, and shelter
• Increasing productivity of small and large scale farmers
• Making India an Independent Economy
Based on a 15-year period of striving towards steady growth, the 7th Plan was focused on achieving the pre-requisites of self-sustaining growth by the year 2000. The Plan expected a growth in labor force of 39 million people and employment was expected to grow at the rate of 4 percent per year.
Anti-poverty program:
Special emphasis was given to the most vulnerable classes of people in the society viz., women, children, schedule tribes, and schedule castes. The poverty ratio was expected to decline to 26 percent in 1989-90.
Agriculture:
The government undertook to increase productivity of oilseeds, fruits, vegetables, pulses, cereals, fish, egg, meat, and milk.
Welfare:
Improved facilities for education to girls, family welfare, healthcare, reduction in infant mortality were undertaken by the government as part of the 7th five year plan.
Communications:
Emergence of informatics, telematics, and hooking up of telecommunications with computers were important features of the 7th five year plan in terms of development in Communications.
Transport:
More stress was laid on increasing supplementary modes of transport such as inland waterways, product pipelines, civil aviation, coastal shipping. The 7th Plan expected an increase in accessibility to about 60 percent of the villages in India.

Some of the expected outcomes of the Seventh Five Year Plan India are given below:
• Balance of Payments (estimates): Export - Rs. 33 thousand crore, Imports - (-)Rs.54 thousand crore, Trade Balance - (-)Rs.21 thousand crore
• Merchandise exports (estimates): Rs. 60,653 crore
• Merchandise imports (estimates): Rs. 95,437 crore
• Projections for Balance of Payments: Export - Rs.60.7 thousand crore, Imports - (-) 95.4 thousand crore, Trade Balance- (-) Rs.34.7 thousand crore
Seventh Five Year Plan India strove to bring about a self-sustained economy in the country with valuable contributions from voluntary agencies and the general populace.

SIXTH PLAN OUTLAY BY HEADS OF DEVELOPMENT : (CENTRE, STATES & UNION TERRITORIES)

Sixth Five Year Plan India (1980-1985)

The Sixth Five Year Plan India was undertaken for the period between 1980 to1985, with the main aim of attaining objectives like speedy industrialization, rise in the employment level, poverty reduction, and acquisition of technological self-reliance.
Background of Sixth Five Year Plan India:
At the onset of the Sixth Five Year Plan India, Rajiv Gandhi, the then prime minister prioritized speedy industrial development, with special emphasis on the information technology sector. From the Fifth Five Year Plan, the nation had been able to achieve self sufficiency in food. Moreover, the industrial sector was also diversified and science and technology also made a significant advance. One of the major hindrances in the way of further development in this period was the boom in the Indian population. However, several successful programs on improvement of public health and epidemic control were also undertaken to reduce infant mortality and increase life expectancy. Significant investments were made by the government in the Indian healthcare sector.
Objectives of the Sixth Five Year Plan India:
The objectives of the Sixth Five Year Plan India were mainly focused on increasing industrialization and reducing long-standing problems such as poverty and unemployment. Some of the highlights and predominant aims of the Sixth Five Year Plan India are enumerated as under
• to increase the growth rate of the economy
• to concentrate on the promotion of efficient use of resources
• to improve productivity level
• to initiate modernization for achieving economic and technological self-reliance
• to control poverty and unemployment
• to develop indigenous energy sources and efficient energy usage
• to promote improved quality of life of the citizens
• to introduce Minimum Needs Program for the poor and needy with an emphasis to reduce the discrepancies in income and wealth accumulation
• to initiate Family Planning Programs in order to check the growing population trends
• to protect and improve ecological and environmental assets
• to promote the education at all levels
When Rajiv Gandhi was elected as the prime minister, the young prime minister aimed for rapid industrial development, especially in the area of information technology. Progress was slow, however, partly because of caution on the part of labor and communist leaders.
The Indian national highway system was introduced for the first time and many roads were widened to accommodate the increasing traffic. Tourism also expanded.
The sixth plan also marked the beginning of economic liberalization. Price controls were eliminated and ration shops were closed. This led to an increase in food prices and an increased cost of living.
Family planning also was expanded in order to prevent overpopulation. In contrast to China's harshly-enforced one-child policy, Indian policy did not rely on the threat of force. More prosperous areas of India adopted family planning more rapidly than less prosperous areas, which continued to have a high birth rate.

Outlay: The proposed outlay for the Sixth Plan totaled Rs.1, 58,710 crore.

Fifth Five Year Plan India (1974-1979)

The Fifth Five Year Plan India was chalked out for the period spanning 1974 to1979 with the objectives of increasing the employment level, reducing poverty, and attaining self-reliance.
Background of the Fifth Five Year Plan India:
At the onset of the Fifth Five Year Plan India in the 1970s, the international economy was in a turmoil, which had a great impact on the economy of both, developed and developing countries of the world. The main changes were perceived in sectors such as food, oil, and fertilizers where prices sky-rocketed. As a result of this, attaining self-reliance in food and energy became a top priority. During this period, the Indian economy was affected by several inflationary pressures. Food grain production was above 118 million tons due to the improvement of infrastructural facilities like the functioning of the power plants and the rise in the supply of coal, steel, and fertilizers. Regarding the oil, credibility of Bombay High had shot up the commercial production of oil in India. In 1974-75, Indian exports crossed 18%, and the large earnings from these exports have further increased the Indian foreign exchange reserves.



Objectives of the Fifth Five Year Plan India:
The Fifth Five Year Plan India was designed with emphasis on certain objectives, enlisted as under:
• to reduce social, regional, and economic disparities for developmental planning
• to enhance agricultural productivity
• to initiate land reforms
• to check rural and urban unemployment
• to emphasize on household industries like carpet-weaving, handlooms, sericulture, and handicrafts
• to encourage self-employment through a well integrated local planning
• to encourage import substitution in areas like industrial machinery, chemicals, paper, iron and steel and non-ferrous metals
• to capture the markets with locational advantages
• to initiate appropriate use of fiscal, credit and production support policies in the cottage industry sector
• to develop labor intensive technological improvements
Outlay: A total outlay of Rs. 53,410 crore was proposed for the Fifth Plan.

Fourth plan (1969-1974)

At this time Indira Gandhi was the Prime Minister. The Indira Gandhi government nationalized 19 major Indian banks. In addition, the situation in East Pakistan (now independent Bangladesh) was becoming dire as the Indo-Pakistani War of 1971 and Bangladesh Liberation War took place.
Funds earmarked for the industrial development had to be used for the war effort. India also performed the Smiling Buddha underground nuclear test in 1974, partially in response to the United States deployment of the Seventh Fleet in the Bay of Bengal to warn India against attacking West Pakistan and widening the war.
Outlay: The total proposed outlay was Rs. 24,880 crore, which included Rs. 15,900 crores as public sector outlay and Rs. 8,980 crore as private sector outlay.

Third Five Year Plan India (1961-1966)

The third five year plan India (1961-1966) intended to make a more determined effort to develop the nation, carrying forward the legacy set by the previous two five year plans. These five year plans are formulated by the planning commission, the aim of which is to increase the quality of life of the citizens through effective use of the country's resources.

The various tasks of the third five year plan India are:
• To increase the national income by 5% per year
• To increase the production of agriculture so that the nation is self sufficient in food grains
• To provide employment opportunities for every citizen of the country
• To establish equality among all the people of the country
In the earlier 2 five year plans, agriculture was not given a great deal of importance in spite of the fact that India's economy is still primarily agrarian. But in the third five year plan of India, more stress had been given to agriculture because increase in agricultural production would lead to the growth of the Indian economy. Sufficient sops and subsidies were allowed by the government for the agricultural sector under the third five year plan of India.

In an effort to invite increased state participation to the India third five year plan, more responsibility was given to the states. Also, various organizations such as the Panchayat and Zila Parishads were set up at the block and district level in order to increase rural development. In India, the third five year plan have also laid emphasis on soil conservation, irrigation, afforestation, and dry farming. Many fertilizer and cement plants were built during the period of the third five year plan India. Stress had been given to the development of social services and education in India.

The third five year plan in India had, to a large extent, improved the quality of life of Indian citizens, and played a crucial role in the growth and development of the country. State electricity boards and state secondary education boards were formed. States were made responsible for secondary and higher education. State road transportation corporations were formed and local road building became a state responsibility. Gross Domestic Product rate during this duration was lower at 2.7% due to 1962 Sino-Indian War and Indo-Pakistani War of 1965.

Second Five Year Plan India (1956-1961)

Second five year plan India (1956-1961) intends to increase and carry forward the development that had been started by the first five year plan in India.

These five year plans are formulated by the planning commission whose objective is to utilize the country's resources effectively, so that the standard of living of the people improves.

The various tasks of the second five year plan in India are:
• To increase by 25% the national income
• To make the country more industrialized
• To increase employment opportunities so that every citizen gets a job
In India, the second five year plan focused on industry - more specifically on the heavy industry. The domestic production of industrial goods in the public sector was encouraged by the second five year plan in India. The total amount for development given allocated under the second five year plan in India was Rs. 4,800 crore. This money has been distributed under the second five year plan in India for the development of various sectors. They are:
• Mining and industry
• Community and agriculture development
• Power and irrigation
• Social services
• Communications and transport
• Miscellaneous
During the second five year plan India, 5 steel plants in Jamshedpur, Durgapur, and Bhilai had been established, apart from a hydro-electric power project which was also undertaken and implemented. The production of coal increased during this period. Also, more railway lines were added in the north-east part of the country, during the Indian second five year plan. Land reform measures have been taken during the period of the second five year plan India, in order to remove the socio-economic constraints of the rural population.

The second five year plan India has, to a large extent, improved the living standards of the people.
Outlay: The Second Plan proposed a total public sector outlay of Rs. 4,800 crores though actual outlay was only Rs. 4,672 crore.

First Five Year Plan India (1951-1956)

The first five year plan India (1951-1956) had been presented by the then Prime Minister Jawaharlal Nehru in the Indian Parliament on 8th December, 1951.

The first five year plan had been made by the planning commission whose objective was to improve the standard of living of the people by effective use of the country's resources. In India, the first five year plan's total outlay was estimated to been worth Rs. 2,069 crore. In the first five year plan, this amount was allocated to various areas. They are:
• Community and agriculture development
• Energy and irrigation
• Communications and transport
• Industry
• Land rehabilitation
• Social services
The target of GDP growth in the first five year plan of India was 2.1% per year and the actual growth of GDP that was achieved had been 3.6% per year. This shows the extent to which the first five year plan in India had been successful. During the period of India first five year plan, many projects related to irrigation had been started, such as the Mettur Dam, Bhakra Dam, and Hirakud Dam.

In the first five year plan of India, provisions have been made for the rehabilitation of agricultural workers who were landless. Apart from that financial allocation was also made for conservation of soil, experiments, and training in co-operative organizations. Increased provisions have also been made for the improvement of roads, civil aviation, railways, telegraphs, and posts. For the development of the basic industry which includes the manufacture of fertilizers and electrical equipment, provisions have been made in the Indian first five year plan. Emphasis has also been given to small scale and village industries in the Indian plan of first five years. First five year plan in India had improved the living condition of the people of the country and is of historical importance. Outlay: The total proposed outlay was Rs. 3,870 crore.

INTRODUCTION

India Planning Commission was set up in March, 1950 by the resolution of the Indian government. The Commission for India Planning was established in order to bring about a steady and swift rise in the living standards of Indian citizens. The government sought to uplift the condition of India's teeming millions by exploiting the country's rich resources (natural and otherwise) efficiently, providing employment opportunities to all, and by increasing the production levels in the agricultural as well as industrial sectors.

The various functions of India Planning Commission are:
• To assess the country's resources
• To formulate 5 year plans that make an effective use of the country's resources
• To determine national priorities and allot resources to the plans
• To decide the machinery required to make the plans successful
• To make appraisals of the plans periodically in order to check their progress
The composition of the India Planning Commission has changed a lot since its inception. At the head is the Prime Minister of the country who acts as the ex-officio chairman. The India Planning Commission has a deputy chairman who is nominated and the cabinet members who act as part- time members. The full-time members of the Indian Planning Commission are experts from various fields such as industry, science, general administration, and economics.

In 1951, the 1st 5 year plan was announced and the then Prime Minister, Jawaharlal Nehru was the chairman of that India Planning Commission. Till 1965, 2 consecutive 5 year plans had been formulated. After that, there was a pause in the launch of 5 year plans in India due to the Indo-Pakistan war. Again, in 1969, the 4th five year plan was launched and by 1992, the 8th five year plan was started. In all these 8 plans emphasis has been laid on the public sector, with huge investments being made in heavy and basic industries. But in 1997, with the launch of the 9th five year plan, the emphasis shifted from the public sector and became more indicative in nature.