Features of Indian Five Year Plan .

INTRODUCTION OF ECONOMIC PLANNING INDIA adopted economic planning in 1951 when it launched its FIVE YEAR PLAN for the period 1951 to 1956. Since than it has completed TEN FIVE YEAR PLAN besides a few years of break in the form of Annual Plans. The country has now entered the ELEVENTH FIVE YEAR PLAN. Eleventh Five Year Plan commenced on 1st April 2007 and will be completed on 31st March 2012 . Planning Commission for five year plan was set up in 1950. Prime Minister of INDIA is the chairman of the planning commission.

PLANS PERIOD First Five Year Plan 1951-56 Seventh Five Year Plan 1985-90 Second Five Year Plan 1956-61 Eighth Five Year Plan 1992-97 Third Five Year Plan 1961-66 Ninth Five Year Plan 1997-2002 Fourth Five Year Plan 1969-74 Tenth Five Year Plan 2002-2007 Fifth Five Year Plan 1974-78 Eleventh Five Year Plan 2007-2012 Sixth Five Year Plan 1980-85

WHY ECONOMIC PLANNING IS REQURIED :- Economic planning is required for ever economy because of following reason’s:- For the development of an economy. It is a superior way of development. Planning helps in getting over the hurdles to development in the country. Planning is an instrument which enables the govt. to undertake many big tasks which cried for big solutions.

Planning is required for guiding and directing of an economy. Planning is required to increase the productivity of the economy. The basic objective of planning is to provide both for growth and equity.

FEATURES OF ECONOMIC PLANNING:- INDICATIVE CHARACTER :- The basic feature of Indian planning is its Indicative Character. It is indicative in the sense that it merely outlines the directions towards which the economy is desired to move. It also spells out the means for achieving these aims.

PUBLIC SECTOR PLANNING :- Another basic feature of planning is its main, almost exclusive, concern with the programmes of the public sector. In the economy wide frame, the planning authorities identify the tasks that the various economic units [investors,tarders,financiers etc.] in the private and the public sector are to undertake to ensure that the economy takes the development -path envisaged for it.

Sectoral Allocation of Plan Outlay of Public Sector Items Sectoral allocation (Rs.) % Agriculture & allied activities 58,933 3.7 Rural Development 1,21,928 8.0 Special Area Programmes 20,879 1.4 Irrigation and Flood Control 1,03,315 6.8 Energy 4,03,927 26.5 Industry and Minerals 58,939 3.9 Transport 2,25,977 12.5 Communication 98,968 6.5 Science and Technology 30,424 2.0 General Economic Services 38,630 2.5 Social Services 3,47,391 22.8 General Services 16,328 1.1 Miscellaneous 66,661 2.3 Total 15,92,300 100

DECENTRALISED PLANNING :- In India planning system is decentralised. Both in the preparation and implementation of plans, the planning process involves the participation of the people on an extensive scale. The people through their representatives, discuss and approves the plan prepared. This enables the planners of the country to embody the wishes of the people into the plans.

MIXED ECONOMY PLANNING :- The planning system in the Indian Economy combines the Private sector with Public sector. Keeping in view the all-round development of the country different tasks have been assigned to different sectors. In first six five year plan, more importance was given to the public sector than private sector. It is from the seventh five year plan onwards private sector has been given more important role to promote economic development of India.

PLANNING FOR GROWTH AND EQUITY:- Planning for growth and equity is the another feature of Five Year Plans. It is only through a faster growth that people can have more income ,more employment , and an improved quality of life. To achieve a higher growth, the plans have devised programmes for the deployment of resources .

DEMOCRATIC :- In India economic planning has assumed a democratic pattran.In India plans are formulated by planning commission and are finally approved by National Development Council. All State Chief Ministers are the members of the National Development Council. The NDC is headed by the Prime minister of the India.

EXISTENCE OF CENTRALPLAN AND STATE PLAN :- In the Five Year Plans of India ,there is co-existence of central plan and state plans. In every five year plan, there are separate outlay is made for both central plan and state plan. Central plan is under the control of Planning Commission, whereas state plan is under the control of State Planning Commission Board and State Govt.

FINANCIALPLANNING :- In Five Year Plan ,it is observed that more emphasis is given on the allocation of funds in different sectors and on different activities. While less emphasis is given on achieving physical targets of the plans. In short we can say that, Indian Planning is a type of Financial Planning.

PROSPECTIVE AND PERSPECTIVE PLANNING :- Indian Planning is both prospective and perspective planning. In other words, both Short-term and Long-term Programmes have been incorporated in Five Year Plans. It is because without making Short-term plans a part of the long term plans, REAL POTENTIALITIES cannot be achieved.

OBJECTIVES :- Each Five Year Plan has some objectives, like Rapid Industrialization, Raising Standard of Living of People, Full Employment, Reduction in inequalities of wealth and income,etc. Main Objective of each Five Year Plan is to maximize NATIONAL INCOME AND PER CAPITA INCOME.

Plans % growth Of National Income First Plan Second Plan Third Plan Fourth Plan Fifth Plan Sixth Plan 3.6 4.1 2.5 3.3 5.0 5.4 Seventh Plan Eighth Plan Ninth Plan Tenth Plan Eleventh Plan [Target] {2009-10} 5.8 6.7 5.5 7.8 9.0 7.2

DEFINITE TIME PERIOD :- Each Five Year Plan has a definite time period to complete.i.e the Period of Five Years. Due to some exigencies, one year plans were also made in between. For example, after 3rd and 7th Five Year Plan, three and two annual plans were made respectively.