Indian Economics - Five year Plans - Part I

FIRST FIVE YEAR PLAN (1951-1956)

Problems during first five year Plan:

1. Influx or Refugees
2. Food Shortage
3. Inflation which was on the rise
4. Disequilibrium of economy due to II world war
5. Partition of the country

Target:

At least 11% increase in national income

Economic growth + Social growth

 

SECOND FIVE YEAR PLAN (1956-1961)

• * Bolder & ambitious plan
• * Major step towards Industrialization
• * Rebuilding of rural India
• * Create Socialistic Pattern of society

THIRD FIVE YEAR PLAN (1961-61 to 1965-66)

• * Continuation of second 5 year plan

 

FOURTH FIVE YEAR PLAN (1969 - 1974)

• * Growth with stability
• * To be Self reliant

Observations:

      Indo-Pak war Caused a setback and hence the desired economic boost was not achieved.

 

FIFTH FIVE YEAR PLAN (1974-1978)

• * Remove poverty
• * Attain Self reliance.

Termination of the fifth plan:

In March 1977 Janata government terminated the plan as if was a conflict to the party's Socio economic philosophy. A new plan called rolling plan was launched from april 1978 (1978-83)

 

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