The Constitution came into force on 26 January 1950. Subsequently, Planning Commission was set up on 15 March 1950 and the plan era started from 1 April 1951 with the launching of the First Five Year Plan (1951-56).
List of Five Year Plans in India
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This article will keep you updated on the history and objectives of economic planning in India, Five Year Plan in India and the Planning Commission as well as its successor, the NITI Aayog. You can also download the list of Five Year Plans, its objectives, and assessments in the form of PDF.
UPSC exam aspirants must refer to the information given below related to Economic Planning in India.
The topic of the economic planning of India is covered in the general studies section of UPSC and various other competitive exams.
Know the detailed UPSC Syllabus in the linked article.
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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 the economic growth and development of the nation.
Long-term objectives of Five Year Plans in India are:
The idea of economic planning for five years was taken from the Soviet Union under the socialist influence of first Prime Minister Pt. Jawahar Lal Nehru.
The first eight five year plans in India emphasised on growing the public sector with huge investments in heavy and basic industries, but since the launch of the Ninth five year plan in 1997, attention has shifted towards making the government a growth facilitator.
An overview of all Five Year Plans implemented in India is highlighted below:
| List of Five Year Plans in India [1951-2017] | |||
| Five Year Plans | Years | Assessment | Objective |
| First Five year Plan | 1951- 1956 | Targets and objectives more or less achieved. With an active role of the state in all economic sectors. Five Indian Institutes of Technology (IITs) were started as major technical institutions. | Rehabilitation of refugees, rapid agricultural development to achieve food self-sufficiency in the shortest possible time and control of inflation. |
| Second Five year Plan | 1956-1961 | It could not be implemented fully due to the shortage of foreign exchange. Targets had to be pruned. Yet, Hydroelectric power projects and five steel mills at Bhilai, Durgapur, and Rourkela were established. | The Nehru-Mahalanobis model was adopted.‘Rapid industrialisation with particular emphasis on the development of basic and heavy industries Industrial Policy of 1956 accepted the establishment of a socialistic pattern of society as the goal of economic policy. |
| Third Five year Plan | 1961-1966 | Failure. Wars and droughts. Yet, Panchayat elections were started.• State electricity boards and state secondary education boards were formed. | ‘establishment of a self-reliant and self-generating economy’ |
| Plan Holidays – Annual Plans | 1966-1969 | A new agricultural strategy was implemented. It involved the distribution of high-yielding varieties of seeds, extensive use of fertilizers, exploitation of irrigation potential and soil conservation measures. | crisis in agriculture and serious food shortage required attention |
| Fourth Five year Plan | 1969-1974 | Was ambitious. Failure. Achieved growth of 3.5 percent but was marred by Inflation. The Indira Gandhi government nationalized 14 major Indian banks and the Green Revolution in India advanced agriculture. | ‘growth with stability’ and progressive achievement of self-reliance Garibi HataoTarget: 5.5 pc |
| Fifth Five year Plan | 1974-1979 | High inflation. Was terminated by the Janta govt. Yet, the Indian national highway system was introduced for the first time. | ‘removal of poverty and attainment of self-reliance’ |
| Sixth Five year Plan | 1980-1985 | Most targets achieved. Growth: 5.5 pc.Family planning was also expanded in order to prevent overpopulation. | ‘direct attack on the problem of poverty by creating conditions of an expanding economy’ |
| Seventh Five year Plan | 1985-1990 | With a growth rate of 6 pc, this plan was proved successful in spite of severe drought conditions for the first three years consecutively. This plan introduced programs like Jawahar Rozgar Yojana. | Emphasis on policies and programs that would accelerate the growth in foodgrains production, increase employment opportunities and raise productivity |
| Annual Plans | 1989-1991 | It was the beginning of privatization and liberalization in India. | No plan due to political uncertainties |
| Eighth Five year Plan | 1992-1997 | Partly success. An average annual growth rate of 6.78% against the target 5.6% was achieved. | Rapid economic growth, high growth of agriculture and allied sector, and the manufacturing sector, growth in exports and imports, improvement in trade and current account deficit. to undertake an annual average growth of 5.6% |
| Ninth Five year Plan | 1997-2002 | It achieved a GDP growth rate of 5.4%, lower than the target. Yet, industrial growth was 4.5% which was higher than targeted 3%. The service industry had a growth rate of 7.8%. An average annual growth rate of 6.7% was reached. | Quality of life, generation of productive employment, regional balance and self-reliance.Growth with social justice and equality. growth target 6.5% |
| Tenth Five year Plan | 2002 –2007 | It was successful in reducing the poverty ratio by 5%, increasing forest cover to 25%, increasing literacy rates to 75 % and the economic growth of the country over 8%. | To achieve 8% GDP growth rate,Reduce poverty by 5 points and increase the literacy rate in the country. |
| Eleventh Five year Plan | 2007-2012 | India has recorded an average annual economic growth rate of 8%, farm sector grew at an average rate of 3.7% as against 4% targeted. The industry grew with an annual average growth of 7.2% against 10% targeted. | Rapid and inclusive growth.Empowerment through education and skill development. Reduction of gender inequality.Environmental sustainability. |
The following were the original objectives of economic planning in India:
Economic planning in India dates back to pre-Independence period when leaders of the freedom movement and prominent industrialists and academics got together to discuss the future of India after Independence which was soon to come. Noted civil engineer and administrator M. Visvesvaraya is regarded as a pioneer of economic planning in India. His book “Planned Economy for India” published in 1934 suggested a ten year plan, with an outlay of Rs. 1000 crore and a planned increase of 600% in industrial output per annum based on economic conditions of the time.
The Industrial Policy Statement published just after independence in 1948 recommended setting up of a Planning Commission and following a mixed economic model. Here are the major milestones related to economic planning in India:
Setting up the NITI Aayog was a major step away from the command economy structure adopted by India till 1991. The Planning Commission’s top-down model of development had become redundant due to present economic conditions and NITI Aayog approaches economic planning in a consultative manner with input from various state governments and think tanks.
While preparing for the UPSC Exam, Economic Planning should be approached in a systematic manner. The major achievements of economic planning in India remain an important part of the UPSC Syllabus. The strategy of economic planning in India under the Planning Commission as well as the NITI Aayog are important as well. As a rule, IAS aspirants should focus on:
List of Five Year Plans in India
Download PDF Here
Solving the previous year’s UPSC Question Papers is a good way to revise the preparation done for this topic as the Indian Economy and issues relating to planning are a permanent fixture of Mains General Studies Paper III. UPSC 2024 may also draw on some aspects of planning done by state governments.
To practice questions on Indian Economy for UPSC Prelims, please check out:
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.
The basic objective of economic planning is that there is equal distribution of resources, the goals set are completed within specific period of time, Increase the production and employment and also reduce the population growth.
Economic planning in India started after independence in the year 1950 when it was deemed necessary for economic growth and development of the nation.
In 1934, Sir M. Visvesvaraya had published a book titled “Planned Economy in India”, in which he presented a constructive draft of the development of India in next ten years. His core idea was to lay out a plan to shift labor from agriculture to industries and double up National income in ten years.
Few Features of Economic Planning in India are:
Planning Commission, agency of the government of India established in 1950 to oversee the country’s economic and social development, chiefly through the formulation of five-year plans.
The first five year plan was presented in the parliament by Prime Minister Jawaharlal Nehru in December 1951.
The most important failure of Indian planning is the growth of unemployment rate. It means the planning process did not able to create gainful employment opportunities both in the organized and unorganized sectors. Rise in Price level – Another major failure of Indian planning is the inflation.
There are two types of economic planning: (1) collectivist planning, also known as economic planning by direction, and (2) suggestive planning, also known as economic planning by inducement.
12th Five Year Plan of the Government of India (2012–17) was India’s last Five Year Plan. With the deteriorating global situation, the Deputy Chairman of the Planning Commission Mr Montek Singh Ahluwalia has said that achieving an average growth rate of 8 per cent in the next five years is not possible.
Rolling Plan was the sixth five year plan introduced by the Janata Government for the time period 1978-83, after removing the fifth five year plan in 1977-78.
Furthermore, aspirants must also carefully review the civil services syllabus and exam pattern for a better understanding of the UPSC CSE and accordingly chalk out the preparation strategy.
To learn about the best strategy to be followed that can help in guiding through the exam preparation, candidates can refer to the IAS toppers list and check out their success stories.
For the latest exam updates, study material and preparation tips, visit BYJU’S.
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