Five Year Plans


History of Five Year Plans

  • The planning of Indian economy was carried out through the Five-Year Plans, developed, executed, and monitored by the Planning Commission (1951–2014) and the NITI Aayog (2015–2017)
  • Joseph Stalin implemented the first Five-Year Plan in the Soviet Union in 1928.
  • India launched its First FYP in 1951, immediately after independence, under the socialist influence of India's first prime minister, Jawaharlal Nehru
  • Planning commission was created on 15 March 1950
  • M Vishveshwarya 
    • First attempt in laying foundation for economic planning in India in 1934 through his book "Planned Economy of India". It was a 10 year plan
  • Jawaharlal Nehru - 1st chairman of Planning Commission
    • Planned to set up "National Planning Commission". Due to WW2, it did not work out
  • Bombay Plan (1944) - Created by leading industrialists in India
  • SN Agarwal (1944) - Gandhian Plan
  • 1945 - MN Roy - People's Plan
    • Main focus was on employment and wages, agricultural production
  • JP Narayan (1950) - Sarvodaya Plan


  • First Plan (1951 - 1956)
    • Harrod-Domar model
    • Focused on agriculture, price stability, power and transport
    • Architect - KN Raj
    • Target growth: 2.1%
    • Actual growth: 3.6%
    • At the end of this plan, five IITs were set up in the country
    • Built Bhakra Nangal Dam, Hirakud Dam during this period
  • Second Plan (1956 - 1961)
    • Nehru-Mahalanobis Feldman model
    • Focused on heavy & basic industries and to create socialist economy
    • Durgapur, Bhilai, Rourkela steel plants were set up
    • Atomic Energy Commission (AEC), Tata Institute of Fundamental Research (TIFR) was set up
    • Target growth: 4.5%
    • Actual growth: 4.3%
  • Third Plan (1961 - 1966)
    • John Sandy & S Chakravarthy model
    • Aka Gadgil Yojana
    • Service sector development model
    • Green Revolution started
    • Target growth: 5.6%
    • Actual growth: 2.8%
  • Three Annual Plans (1966 - 1969)
    • Aka plan holiday
    • New agriculture strategy was implemented
  • Fourth Plan (1969 - 1974)
    • Aka Allen S Manne & Ashok Rudra model
    • Under the leadership of Indira Gandhi
    • Objective: growth with stability and progressive achievement of self-reliance 
    • Implementation of Family Planning Program was one of the main targets
    • White revolution took place - Operation Flood
    • Target growth: 5.7%
    • Actual growth: 3.3%
    • Failed due to 1971 Indo-Pak war
  • Fifth Plan (1974 - 1979)
    • Dhar model
    • Garibi Hatao (Indira Gandhi), attainment of self-reliance
    • Target growth: 4.4%
    • Actual growth: 4.8%
  • Rolling Plan/Annual Plan (1978 - 1980)
    • Brought by Janata Party
    • Suggested by Gunnar Myrdal
  • Sixth Plan (1980 - 1985)
    • Beginning of economic liberalization
    • Removal of poverty and modernization
    • NABARD set up during this timeframe (12th July 1982)
      • On the recommendations of B. Sivaraman committee
    • Target growth: 5.2%
    • Actual growth: 5.7%
  • Seventh Plan (1985 - 1990)
    • Target growth: 5%
    • Actual growth: 6%
    • Jawahar Rozgar Yojana was implemented
  • Annual plans (1990 - 1992)
  • Eighth Plan (1992 - 1997)
    • Aka John W Miller model
    • Aka Rao-Manmohan model
    • Objective was human resource development
    • Target growth: 5.6%
    • Actual growth: 6.8%
  • Ninth Plan (1997 - 2002)
    • Objective: growth with social justice and equality
    • Aka People's Plan
    • Target growth: 6.5%
    • Actual growth: 5.4%
  • Tenth Plan (2002 - 2007)
    • Objective: Attaining 8% GDP growth rate
    • PURA scheme (Providing Urban Amenities in Rural Areas) was implemented
    • National Food for Work Program (NFWP), 2004
    • Mahatma Gandhi National Rural Employment Guarantee Act, 2005
    • This plan aimed to double the Per Capita Income of India in the next 10 years
    • It also aimed to reduce the poverty ratio to 15% by 2012
    • India emerged as one of the fastest growing economies by the end of this plan
    • Target growth: 8%
    • Actual growth: 7.6%
  • Eleventh Plan (2007 - 2012)
    • Targets: 7 million new jobs, lower IMR, CMR, safe drinking water
    • Faster and more inclusive growth
    • Aka education plan
    • To reduce poverty by 10%
    • Target growth: 9%
    • Actual growth: 8%
  • Twelfth Plan (2012 - 2017)
    • Target growth: 9%
    • Actual growth: 5%
    • Its main theme is “Faster, More Inclusive and Sustainable Growth”


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