Planning Commission

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Planning Commission in India

• Prepared by Narendra Singh Chaudhary

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Planning Commission

• Planning Commission was set up in March, 1950.
• The Planning Commission has been entrusted with
  the responsibility of the creation, development
  and execution of India's five year plans. India's
  five year plans are also supervised by the
  Planning commission.

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History

• The Planning Commission was set up by a
  Resolution of the Government of India in March
  1950 in pursuance of declared objectives of the
  Government to promote a rapid rise in the
  standard of living of the people by efficient
  exploitation of the resources of the country,
  increasing production and offering opportunities
  to all for employment in the service of the
  community.
• The Planning Commission was charged with the
  responsibility of making assessment of all
  resources of the country, augmenting deficient
  resources, formulating plans for the most
  effective and balanced utilisation of resources
  and determining priorities. Jawaharlal Nehru was
  the first Chairman of the Planning Commission.
• The first Five-year Plan was launched in 1951 and
  two subsequent five-year plans were formulated
  till 1965, when there was a break because of the
  Indo-Pakistan Conflict. Two successive years of
  drought, devaluation of the currency, a general
  rise in prices and erosion of resources disrupted
  the planning process and after three Annual Plans
  between 1966 and 1969, the fourth Five-year plan
  was started in 1969.

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• The Eighth Plan could not take off in 1990 due to
  the fast changing political situation at the
  Centre and the years 1990-91 and 1991-92 were
  treated as Annual Plans. The Eighth Plan was
  finally launched in 1992 after the initiation of
  structural adjustment policies.
• For the first eight Plans the emphasis was on a
  growing public sector with massive investments in
  basic and heavy industries, but since the launch
  of the Ninth Plan in 1997, the emphasis on the
  public sector has become less pronounced and the
  current thinking on planning in the country, in
  general, is that it should increasingly be of an
  indicative nature.

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Functions

• The 1950 resolution setting up the Planning
  Commission outlined its functions as to
• Make an assessment of the material, capital and
  human resources of the country, including
  technical personnel, and investigate the
  possibilities of augmenting such of these
  resources as are found to be deficient in
  relation to the nations requirement
• Formulate a Plan for the most effective and
  balanced utilisation of country's resources
• On a determination of priorities, define the
  stages in which the Plan should be carried out
  and propose the allocation of resources for the
  due completion of each stage
• Indicate the factors which are tending to retard
  economic development, and determine the
  conditions which, in view of the current social
  and political situation, should be established
  for the successful execution of the Plan

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• Determine the nature of the machinery which will
  be necessary for securing the successful
  implementation of each stage of the Plan in all
  its aspects
• Appraise from time to time the progress achieved
  in the execution of each stage of the Plan and
  recommend the adjustments of policy and measures
  that such appraisal may show to be necessary and
• Make such interim or ancillary recommendations as
  appear to it to be appropriate either for
  facilitating the discharge of the duties assigned
  to it, or on a consideration of prevailing
  economic conditions, current policies, measures
  and development programmes or on an examination
  of such specific problems as may be referred to
  it for advice by Central or State Governments.

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Organisation Of Planning Commission

• The Planning Commission functions through several
  Divisions, each headed by a Senior Officer. The
  Set up is
• Chairman
• Sh. Montek Singh Ahluwalia, Dy. Chairman
• Shri Ashwani Kumar, Minister of State
• Members
• Shri B. K. Chaturvedi
• Saumitra Chaudhuri
• Dr.(Ms.) Syeda Hameed
• Dr. Narendra Jadhav
• Prof. Abhijit Sen
• Dr. Mihir Shah
• Dr. K. Kasturirangan
• Sh. Arun Maira
• Ms. Sindhushree Khullar, Secretary
• Senior Officials
• Grievance Officers

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National Development Council

• The N.D.C. was set up for the first time in 1951
  with a view to bringing about a coordination of
  plans between the Central Ministers and the State
  Governments.
• In its original form it comprised of the Prime
  Minister as the Chairman, Chief Ministers of the
  State Governments and the members of the Planning
  Commission.

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Functions of NDC

• (1) To review the working of the National Plan
  from time to time,
• (2) To consider important questions of social and
  economic policy affecting national development,
  and
• (3) To recommend measures for the achievement of
  the aims and the targets set out in the National
  Plan, including measures to secure the active
  participation and co-operation of the people,
  improve the efficiency of the administrative
  services, ensure the fullest development of the
  less advanced regions and sections of the
  community and, through sacrifice borne equally by
  all citizens, build up the resources for national
  development.
• N.D.C. consists of the Prime Minister, all Union
  Cabinet Ministers, Chief Ministers of all States
  and Union Territories and the Members of the
  Planning Commission.

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1st Five year Plan(1951 to 1956)

• Total budget 206.8 billion (INR) or USD23.6
  billion.
• Target growth2.1 (yearly) growth in gross
  domestic product.
• Areas covered India's five year plans, the 1st
  plan dealt with seven categories.
• They included
• Agriculture as well as community development
• Energy as well as Irrigation
• Communications and transport
• Land rehabilitation Social services
• Miscellaneous Industrial sector

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• 2nd Five year plan
• Year 1956 to 1961
• Dealt with hydroelectric projects, steel mills,
  production of coal, addition of railway tracks
  and other aspects. The 2nd five year plan abided
  by Mahalanobis model.
• 3rd five year plan
• Year 1961 to 1966The plan was put forward in the
  year 1961 and was effective till the date 1966.
• 4th five year plan
• Commencement of panchayat elections. The tenure
  was from 1969 to 1974. POW or prisoners of war
  were set free after Simla Agreement in the year
  1972.
• 5th five year plan
• The 5th five year plan was from 1974 to 1979.
• 6th five year plan
• The 6th five year plan was effective during the
  period 1980 to 1985. This plan was known as the
  Janata government plan. The Janata government
  plan was opposite to that of Nehruvian model.

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• 7th five year plan
• Indian National Congress regained power. This
  plan was during the period 1985 to 1989.
• 8th five year plan
• The period between 1992 to 1997.
• Note
• It may be noticed that the period between 1989 to
  1991 seems to lie idle. But according to the
  trend, these years should have been included. But
  this period was characterized by political
  unrest. This period witnessed many changes.
• 9th five year plan
• Year 1997 to 2002.

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Tenth Five Year Plan(2002-07)

• The 10th Five Year Plan (2002-2007) targets at a
  GDP growth rate of 8 per annum.
• Taking note of the inabilities of the earlier
  Five Years Plans, especially that of the 9th Five
  Year Plan, the Tenth Five Year Plan decides to
  take up a resolution for immediate implementation
  of all the policies formulated in the past. This
  amounts to making appeals to the higher
  government authorities, for successful completion
  of their campaigns associated with the rapid
  implementation of all past policies.

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• The primary aim of the 10th Five Year Plan is to
  renovate the nation extensively, making it
  competent enough with some of the fastest growing
  economies across the globe. It also intends to
  initiate an economic growth of 10 on an annual
  basis. In fact, this decision was taken only
  after the nation recorded a consistent 7 GDP
  growth, throughout the past decade. The 7
  growth in the Indian GDP is considered to be
  considerably higher that the average growth rate
  of GDP in the world. This enabled the Planning
  Commission of India to extend the GDP limit
  further and set goals, which will drive India to
  become one of the best industrial countries in
  the world, to be clubbed and recognized with the
  worlds best industrialized nations.

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Chief Objectives of the 10th Five Year Plan

• The Tenth Five Year Plan proposes schooling to be
  compulsory for children, by the year 2003.
• The mortality rate of children must be reduced to
  45 per 1000 livings births and 28 per 1000
  livings births by 2007 and 2012 respectively.
• All main rivers should be cleaned up between
  2007 and 2012
• Reducing the poverty ratio by at least five
  percentage points, by 2007 Making provision for
  useful and lucrative employments to the
  population, which are of the best qualities
• According to the Plan, it is mandatory that all
  infants complete at least five years in schools
  by 2007.

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• By 2007, there should be a decrease in gender
  discriminations in the spheres of wage rate and
  literacy, by a minimum of 50
• Taking up of extensive afforestation measures, by
  planting more trees and enhance the forest and
  tree areas to 25 by 2007 and 33 by 2012
• Ensuring persistent availability of pure
  drinking water in the rural areas of India, even
  in the remote parts
• The alarming rate at which the Indian population
  is growing must be checked and fixed to 16.2,
  between a time frame of 2001 and 2011
• The rate of literacy must be increased by at
  least 75, within the tenure of the Tenth Five
  Year Plan .

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• There should be a decrease in the Maternal
  Mortality Ratio (MMR) to 2 per 1000 live births
  by 2007. The Plan also intended to bring down the
  Maternal Mortality Ratio to 1 per 1000 live birth
  by the year 2012.

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10th Five year Plan of India in a nutshell

• Increasing the mobility of all the available
  financial resources of India, and optimizing them
  as well
• Setting up of a state-of-the-art infrastructure
  for all the existing industries in India.
• Encourage the initiative of capacity building
  within the Indian industrial sector
• Creating a friendly, amiable and pleasant
  investment environment in India
• Encouraging sufficient transparency in the
  corporate sectors of India
• Introduction of reforms in the industrial
  sectors, which are more investor-friendly in
  nature

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Eleventh Five Year Plan(2007-12)

• To achieve an overall growth rate of 7.6. This
  is envisaged to be achieved through 5 growth in
  agriculture and allied sectors, 10 growth in
  industry and 8 growth in service sector.
• To reduce poverty levels from 38 to 25
• To achieve the literacy rate of 84 by the end of
  the Plan and reduce gender gap in literacy to
  14.
• To achieve reduction in drop out rate from 46.8
  in 2003-04 to 20 by 2011-12 and eliminate gender
  disparity in elementary education.
• To bring down population growth rate to 1.62 by
  2012.
• To improve health parameters-reduce Maternal
  Mortality Ratio (MMR) to 125, IMR to 40 and TFR
  to 2.4 so as to bring them near the all India
  level.

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• To improve the sex ratio (06 years) to 950
  females per 1000 males.
• To reduce malnutrition to 30 and anemia to 30.
• To provide sustainable access to safe potable
  drinking water to all independent habitations.
• To empower women through their socio-economic
  development and increased participation in
  decision making on matters that directly affect
  them.
• To strengthen social, economic and political
  empowerment of weaker sections of the society
  through welfare of SCs/STs, OBCs, minorities and
  poor.

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• To expand present irrigation facilities at least
  by 10.61 lakh hectares through conservation,
  efficient utilization and development of water
  resources.
• To develop strong infrastructure of power to
  provide adequate and improved quality of power to
  all the villages and meet the peak demand.
• To provide a minimum single connectivity by all
  weather BT roads to all villages with population
  over 1000 in general and 500 in tribal areas.
• To encourage use of information and communication
  technologies to bridge digital divide, generate
  employment, have e-governance and prepare the
  state to be a knowledge economy.

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Plan Target Actual

• First Plan (1951 56) 2.9 3.6Second Plan
  (1956 61) 4.5 4.3Third Plan (1961 66) 5.6
  2.8Fourth Plan (1969 1974) 5.7 3.3Fifth
  Plan (1974 79) 4.4 4.8Sixth Plan (1980 85)
  5.2 6.0Seventh Plan (1985 90) 5.0
  6.0Eighth Plan (1992 97) 5.6 6.8Ninth Plan
  (1997 2002) 6.5 5.4Tenth Plan (2002 2007)
  8.0

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