Five Year Plans and Goals of Planning
1 Quick Explanation 1–3 min
Planning Commission (1950) drafted Five Year Plans with the goal of long-term development.
Core goals: growth, modernisation, self-reliance, and equity.
2 Detailed Notes
Definition
Planning in India
Planning = deliberate use of state resources to achieve defined economic goals. NITI Aayog (2015) replaced the Planning Commission (1950), ending the 12th Five Year Plan.
Key idea
The four goals
- Growth: increase in GDP / national income.
- Modernisation: technological change, higher productivity, changed social outlook.
- Self-reliance: reduce dependence on foreign aid & imports, esp. food.
- Equity: reduce inequality of income and wealth, poverty.
Important
Trade-off in goals
Goals often conflicted: e.g., growth vs equity — fast growth may raise inequality; self-reliance may slow growth. Planners had to balance them.
Comparison
Key plans (for exam)
| Plan | Focus |
|---|---|
| 1st (1951–56) | Agriculture, irrigation, power — Harrod–Domar model |
| 2nd (1956–61) | Rapid industrialisation — Mahalanobis model, heavy industry |
| 3rd (1961–66) | Self-reliance, agriculture + industry |
| Annual plans (1966–69) | After Indo-Pak war & drought — 'plan holiday' |
| 4th (1969–74) | Growth with stability; Green Revolution |
| 6th (1980–85) | Poverty removal |
| 7th (1985–90) | Food, work, productivity |
| 8th (1992–97) | After LPG reforms — structural adjustment |
Example
Role of agriculture vs industry
1st plan prioritised agriculture (food shortage), 2nd plan shifted to heavy industry — a famous shift you may be asked to explain.
In One Minute
Planning goals: Growth, Modernisation, Self-reliance, Equity ('GMSE'). Plans ran 1951–2012 (12 plans); Planning Commission → NITI Aayog in 2015.
Important for Exam
- ⭐ Four objectives of planning (4 marks).
- ⭐ 1st vs 2nd plan focus (3 marks).
- ⭐ Trade-offs among goals.
- ⭐ NITI Aayog replacing Planning Commission.
Watch & Learn
Watch on YouTubeFive year plans in India, goals and objectives - Indian economic development
by Rajat Arora
Why watch? All plans with objectives and achievements.
Open on YouTube Watch on YouTubeFive year plans in India, goals and objectives - Indian economic development
by Rajat Arora
Why watch? Growth, modernisation, self-reliance, equity.
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