Economic Planning in India from National Committees to NITI Aayog

Economic Planning in India from National Committees to NITI Aayog

(1938)

• Indian National Congress formed this committee
• Subhash Chandra Bose was Congress president and was chaired by Jawaharlal Nehru
• Aim was to release a detailed blueprint of an economic plan for independent India.

Bombay plan

(1944)

• Industrialists of Bombay including Mr. JRD Tata, GD Birla, Purshottamdas Thakurdas, Lala Shriram, Kasturbhai Lalbhai, AD Shroff, Ardeshir Dalal, & John Mathai prepared this plan.
• It was neglected by the political parties and by the business class due to various reasons.

People’s Plan

(1945)

• By MN Roy.
• This plan gave greatest priority to Agriculture.
• This plan was for ten years.
• It recommended nationalization of all agriculture and production.

(1944)

• By Sri Shriman Narayan who was principal of Wardha Commercial College.
• Plan emphasized economic decentralization with primacy to rural development by developing cottage industries.

Sarvodaya Plan

(1950)

• By Jaiprakash Narayan inspired by Gandhian plan as
• and the Sarvodaya Idea of Vinoba Bhave.
• It emphasized on small and cotton industries and
• agriculture as well.
• Plan also stressed upon land reforms and decentralized participatory planning

• set up by a Resolution, with Jawaharlal Nehru as the first Chairman of the Planning Commission.

• 1951-56
• Based on the Harrod-Domar model.
• Its main focus was on the agricultural development of the country including irrigation and power projects.
• Targeted growth rate – 2.1 percent
• Achieved growth rate of 3.6% (more than its target)

• 1956 to 1961
• Rapid industrialization with a focus on heavy industries and capital goods
• Targeted growth rate – 7.5 percent
• Achieved growth rate of 4.1%
• It was based on the P.C. Mahalanobis Model

• 1961 to 1966
• Also called ‘Gadgil Yojana’
• The main target of this plan was to make the economy independent and to reach the self-active position of take-off.
• For the first time, it was considered the aim of balanced, regional development.

• 1966 to 1969.
• Focus was on Self-reliance.
• During this plan, annual plans were made and equal priority was given to agriculture & its allied sectors and the industry sector.
• The Green revolution ushered in this period. (1966-67).

• 1969 to 1974
• Growth with stability and progressive achievement of self-reliance.
• Targeted growth rate – 5.7 percent
• Achieved growth rate of 3.3% (plan failed to achieve targeted growth rate)

• 1974 to 1979.
• Focus on poverty alleviation and self-reliance
• Targeted growth rate – 4.4 percent
• Achieved growth rate of 4.8% (plan was successful)
• This plan was terminated in 1978.

• 1978 to 1980
• As a continuation of the fifth year plan

• 1980 to 1985.
• Targeted growth rate – 5.2 percent
• Achieved growth rate of 5.7% (plan was successful)
• Objective – poverty eradication and Employment generation.

• 1985 to 1990.
• Objectives – emphasized on rapid food grain production, increased employment creation and productivity in general.
• Targeted growth rate – 5 percent
• Achieved growth rate of 6% (plan was successful)

• Eighth Plan (1990–95) could not take off due to the political situation of the country, the Fiscal imbalances and the BOP crisis.

• 1992 to 1997.
• Targeted growth rate – 5.6 percent
• Achieved growth rate of 6.8% (plan was successful)
• Objective – Development of human resources i.e., employment, education, and public health.
• Adoption of Indicative planning in totality
• Narasimha Rao Govt. launched the New Economic Policies of India
• Rao-Manmohan Model– LPG (Liberalization, Privatization, Globalisation)

• 1997 to 2002.
• Targeted growth rate – 7 percent. Achieved growth rate of 5.6%
• Objective – “growth with justice and equity”.
• It was launched in the 50th year of independence of India.

• 2002 to 2007.
• Objective – aims to double the Per Capita Income of India in the next 10 years.
• Targeted growth rate – 8 percent
• For the first time the Plan went to set the ‘monitorable targets’ for eleven select indicators of development for the Centre as well as for the states.

• 2007 to 2012.
• Objective – “faster and inclusive growth”

• 2012 to 2017.
• Objective – “Faster, More Inclusive and sustainable growth”
• Growth rate target is 9%