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Friday, February 4, 2011

FIVE YEAR PLANS OF INDIA

Economic planning:
Economic planning is a sort of conceiving, initiating, regulating and controlling economic activity by the State according to set priorities with a view to achieving well defined objectives within a given time span.
Different types of planning:
(i) Planning by direction and planning by inducement:
Planning by direction is an integral part of a socialist society, in which there is one central authority which plans, directs and orders the execution of the plan in accordance with predetermined targets and priorities. Such planning is comprehensive and encompasses the entire economy.
Planning by inducement is democratic planning. It means planning by manipulating the market. People are induced to act in a certain way through various monetary and fiscal measures.
(ii) Indicative planning and imperative planning:
Indicative planning is peculiar to the mixed economy. In a mixed economy, the public and private sectors work together. In indicative planning the private sector is neither rigidly controlled nor directed to fulfill the targets and priorities of the plan. The state provides all types of facilities to the private sector but does not direct it, rather indicates the areas in which it can help in implementing the plan.
Under imperative planning all economic activities and resources of the economy operate under the direction of the state. There is complete control over the factors of production by the state. There is no consumers sovereignty in such planning.
(iii) Democratic planning:
In democratic planning, the philosophy of democratic government is accepted as the ideological basis. People are associated at every step in the formulation and implementation of the plan. India is a unique experimentation in democratic planning.
Features of Indian Planning:
a) Democratic Planning:
b) Indicative Planning:
c) Decentralised Planning:
d) Comprehensive Planning :
e) Development-oriented Planning:
Objectives of Indian Planning:
Four long term objectives were set out by the planners in India. They were :
a) to increase production to the maximum possible extent so as to achieve higher level of national and per capita income;
b) to achieve full employment;
c) to reduce inequities of income and wealth;
d) to set up a socialist society based on equality and justice and absence of exploitation.
Change of objectives in different Plans:
Phase I: 1950-1965: Growth-objective: Capital First Strategy or Mahalanobis Strategy
Phase : II : 1965 – 1974: Plan Holiday and Agriculture First Strategy
Phase III: (1974 – 80) : Growth with Redistribution
Phase – IV : (1980-1990): Modernization and Outward-looking Strategy
Phase–V:(1991 onwards): Economic Liberalisation, Social and Human Development
National Targets of the Eleventh Plan:
Twenty-seven targets at the national level fall in six major categories. The six categories are:
(i) Income and Poverty; (ii) Education; (iii) Health; (iv) Women and Children; (v) Infrastructure; and
(vi) Environment. The targets in each of these categories are given below.
(i) Income and Poverty
• Average GDP growth rate of 9% per year in the Eleventh Plan period.
• Agricultural GDP growth rate at 4% per year on the average.
• Generation of 58 million new work opportunities.
• Reduction of unemployment among the educated to less than 5%.
• 20% rise in the real wage rate of unskilled workers.
• Reduction in the head-count ratio of consumption poverty by 10 percentage points.
(ii) Education
• Reduction in the dropout rates of children at the elementary level from 52.2% in 2003–04 to 20% by 2011–12.
• Developing minimum standards of educational attainment in elementary schools, to ensure quality education.
• Increasing the literacy rate for persons of age 7 years or more to 85% by 2011–12.
• Reducing the gender gap in literacy to 10 percentage points by 2011–12.
• Increasing the percentage of each cohort going to higher education from the present 10% to 15% by 2011–12.
(iii) Health
• Infant mortality rate (IMR) to be reduced to 28 and maternal mortality ratio (MMR) to 1 per 1000 live births by the end of the Eleventh Plan.
• Total Fertility Rate to be reduced to 2.1 by the end of the Eleventh Plan.
• Clean drinking water to be available for all by 2009, ensuring that there are no slip-backs by the end of the
Eleventh Plan.
• Malnutrition among children of age group 0–3 to be reduced to half its present level by the end of the
Eleventh Plan.
• Anaemia among women and girls to be reduced to half its present level by the end of the Eleventh Plan. (iv) Women and Children
• Sex ratio for age group 0–6 to be raised to 935 by 2011–12 and to 950 by 2016–17.
• Ensuring that at least 33% of the direct and indirect beneficiaries of all government schemes are women and girl children.
• Ensuring that all children enjoy a safe childhood, without any compulsion to work.
(iv) Infrastructure
• To ensure electricity connection to all villages and BPL households by 2009 and reliable power by the end of the Plan.
• To ensure all-weather road connection to all habitations with population 1000 and above (500 and above in
hilly and tribal areas) by 2009, and all significant habitations by 2015.
• To connect every village by telephone and provide broadband connectivity to all villages by 2012.
• To 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.
(v) Environment
• To increase forest and tree cover by 5 percentage points.
• To attain WHO standards of air quality in all major cities by 2011–12.
• To treat all urban waste water by 2011–12 to clean river waters.
• To increase energy efficiency by 20% by 2016–17.

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