Growth of Indian economy under the various-five year plans

Growth of Indian economy: The term economic planning is used to describe the long term plans of the government of India to develop and coordinate the economy with efficient utilization of resources. Economic planning in India started after independence in the year 1950 when it was deemed necessary for economic growth and development of the nation.

First Five Year Plan (1951-1956): Under the leadership of Jawaharlal Nehru, the first plan focused on agricultural development, successfully achieving a growth rate of 3.6%, surpassing its 2.1% target. Notably, five IITs were established during this period, reflecting progress in education.

Second Five Year Plan (1956-1961): Led by Jawaharlal Nehru, this plan emphasized industrial development. Although it fell short of its 4.5% growth target, achieving 4.27%, it faced criticism and a payment crisis in 1957. The plan was based on the P.C. Mahalanobis Model of 1953.

Third Five Year Plan (1961-1966): Also known as ‘Gadgil Yojna,’ this plan, led by Nehru, aimed at economic independence with a focus on agriculture, especially wheat production.Wars and drought led to its failure, achieving only 2.4% growth against the 5.6% target.

Plan Holidays (1966-1969): Initiated due to the failure of the third plan, annual plans were introduced, prioritizing agriculture, allied sectors, and industry. Rupee devaluation aimed to boost exports.

Fourth Five Year Plan (1969-1974): Under Indira Gandhi, this plan focused on growth with stability and self-reliance. The Green Revolution and bank nationalization occurred during this period. Despite the Indo-Pakistani War of 1971, the plan failed to achieve its 5.7% growth target, reaching only 3.3%.

Fifth Five Year Plan (1974-1978): Emphasizing ‘Garibi Hatao,’ this plan, terminated by the Moraji Desai government in 1978, achieved a successful 4.8% growth against the 4.4% target.

Rolling Plan (1978-1990): Introduced after the fifth plan, the Rolling Plan was adaptable, allowing for adjustments in targets and allocations to suit economic conditions.

Sixth Five Year Plan (1980-1985): Led by Indira Gandhi, this plan aimed at economic liberalization, poverty eradication, and technological self-reliance, surpassing its 5.2% growth target with 5.7%.Seventh Five Year Plan (1985-1990):Under Rajiv Gandhi, this plan focused on a self-sufficient economy, employment, and technology. Private sector priority resulted in exceeding the 5.0% growth target with 6.01%.

Eighth Five Year Plan (1992-1997): Led by V. Narasimha Rao, this plan prioritized human resource development and witnessed the launch of the New Economic Policy. Achieving 6.8% growth exceeded the 5.6% target.

Ninth Five Year Plan (1997-2002): Led by Atal Bihari Vajpayee, this plan aimed at “Growth with Social Justice and Equality” but fell short of its 6.5% target, achieving a growth rate of 5.6%.

Tenth Five Year Plan (2002-2007): Aimed at doubling Per Capita Income and reducing poverty, this plan achieved a 7.6% growth against the 8.0% target.

Eleventh Five Year Plan (2007-2012): Led by Manmohan Singh, this plan focused on “rapid and more inclusive growth,” achieving an 8% growth against a 9% target.

Twelfth Five Year Plan (2012-2017): Led by Manmohan Singh, the plan aimed at “Faster, More Inclusive, and Sustainable Growth” with a growth rate target of 8%.

Transition to NITI Aayog: Dissolution of the Planning Commission led to the absence of the thirteenth Five Year Plan. The NITI Aayog replaced it, emphasizing policy guidance rather than financial roles.