🇮🇳 Five Year Plans of India (1951 - 2017)

Background

Key Objectives (Common to All Plans)

• Economic Growth - Rapid rise in GDP
• Self-Reliance - Reduce imports, boost domestic production
• Social Justice - Reduce income inequality
• Poverty Alleviation - Remove unemployment and underdevelopment
• Balanced Regional Development - Equal growth across all states
• Modernisation - Technology, industry, human capital

All 12 Five Year Plans at a Glance

Plan-by-Plan Detail

1st Five Year Plan (1951-56)

• Focus: Agriculture and irrigation
• Model Used: Harrod-Domar model
• Key Highlights: Good monsoon seasons helped exceed the growth target. Food production increased, foreign exchange reserves improved.
• Achievement: India beat its own target - grew at 3.6% vs target of 2.1%.

2nd Five Year Plan (1956-61)

• Focus: Heavy industry and rapid industrialisation
• Model Used: Mahalanobis model (P.C. Mahalanobis)
• Key Highlights: Set up major steel plants at Bhilai, Durgapur, Rourkela. Laid the foundation of India's industrial base.
• Near-miss: Achieved 4.3% vs target of 4.5%.

3rd Five Year Plan (1961-66)

• Focus: Self-reliance and democracy
• Key Highlights: Failed badly due to the China War (1962) and India-Pakistan War (1965), plus drought. Growth crashed to just 2.4% vs target of 5.6%.
• Result: Led to "Plan Holiday."

Plan Holiday (1966-69)

• No formal Five Year Plan. Only Annual Plans were made due to war, drought, and economic crisis.
• Devaluation of the Rupee took place in 1966.

4th Five Year Plan (1969-74)

• Focus: Growth with stability, self-reliance
• PM: Indira Gandhi
• Key Highlights: Green Revolution gained momentum. Banks were nationalised in 1969. Growth achieved was only 3.3% due to 1971 war and drought.

5th Five Year Plan (1974-79)

• Focus: "Garibi Hatao" - Poverty removal and self-reliance
• Key Highlights: 20-Point Programme launched. National Highway Act passed. Plan was terminated one year early by the Janata Government in 1978.
• Achievement: Exceeded target - grew at 4.8% vs 4.4%.

Rolling Plan (1978-80)

• Introduced by the Janata Government as a replacement. It was not a fixed plan - targets could be revised every year.
• Replaced back by Five Year Plans when Indira Gandhi returned to power.

6th Five Year Plan (1980-85)

• Focus: Direct attack on poverty and unemployment
• Key Highlights: IRDP (Integrated Rural Development Programme) and TRYSEM launched. Economic liberalisation began slowly.
• Achievement: Exceeded target - 5.7% growth vs 5.2% target.

7th Five Year Plan (1985-90)

• Focus: "Food, Work and Productivity"
• PM: Rajiv Gandhi
• Key Highlights: Technology and modernisation promoted. MTNL, Maruti production expanded. Jawahar Rozgar Yojana launched.
• Achievement: Strong - 6% actual vs 5% target.

Annual Plans (1990-92)

• Political instability (coalition governments) and economic crisis (Balance of Payments crisis) prevented a formal plan.
• Led directly to the historic 1991 LPG Reforms (Liberalisation, Privatisation, Globalisation) under PM P.V. Narasimha Rao and FM Manmohan Singh.

8th Five Year Plan (1992-97)

• Focus: Economic liberalisation, human development
• Key Highlights: Major LPG reforms implemented. Private sector opened up. Telecom revolution began. Focus on education and health.
• Achievement: Best so far - 6.8% vs 5.6% target.

9th Five Year Plan (1997-02)

• Focus: "Growth with Social Justice and Equity"
• Key Highlights: Kargil War affected spending. Pokhran nuclear tests happened in 1998. Couldn't meet target due to global slowdown.
• Shortfall: Achieved 5.4% vs target of 6.5%.

10th Five Year Plan (2002-07)

• Focus: Good governance, reducing regional disparities
• Target: Reduce poverty by 5%, double per capita income in 10 years
• Key Highlights: GDP growth of 7.7% - nearly hit the ambitious 8% target. NHDP (National Highway Development Programme) expanded.

11th Five Year Plan (2007-12)

• Focus: "Towards Faster and More Inclusive Growth"
• PM: Manmohan Singh
• Key Highlights: MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) ensured 100 days of employment for rural families. RTI, RTE Act passed. Highest achieved growth of ~8%.
• Achievement: 8% growth vs 9% target - still remarkable.

12th Five Year Plan (2012-17) - The Last Plan

• Focus: "Faster, More Inclusive, and Sustainable Growth"
• Target: 8% growth
• Key Highlights: Aimed to create 50 million non-farm jobs, reduce child malnutrition, improve access to higher education.
• End: Planning Commission replaced by NITI Aayog in 2015. This was India's last Five Year Plan.

After Five Year Plans: NITI Aayog (2015-Present)

• 15-Year Vision Document
• 7-Year Strategy (Medium Term)
• 3-Year Action Agenda

Quick Memory Tips for Exams 🎯

📋 INDIA KE FIVE YEAR PLANS (PAANCH VARSHIYA YOJANA)

Complete Paper Notes — Easy English

🔷 INTRODUCTION (Parichay)

🔷 WHAT IS A FIVE YEAR PLAN?

• What the country wants to achieve in the next 5 years
• How much money will be spent (budget)
• Which sectors get priority (agriculture, industry, education etc.)
• What the target growth rate (GDP) should be

🔷 MAIN OBJECTIVES (Mukhya Lakshya) of All Plans

1. Economic Growth - Increase GDP and national income
2. Poverty Reduction - Reduce the number of poor people
3. Employment Generation - Create jobs for all
4. Self-Reliance - Reduce dependence on imports and foreign countries
5. Social Justice - Equal opportunities for all people, especially the poor
6. Balanced Development - All states and regions should develop equally
7. Modernisation - Use new technology in farming, industry and education

🔷 ALL 12 PLANS - EASY DETAIL WITH SUCCESS/FAILURE

✅ PLAN 1 : First Five Year Plan (1951 - 1956)

• Fix the economy after Partition (1947)
• Improve farming and food production
• Build dams and irrigation systems
• Bhakhra Nangal Dam was a major project
• Based on the Harrod-Domar economic model
• 5 IITs were set up during this period

🟢 VERDICT: BIG SUCCESS

• Good monsoon seasons helped farmers
• Simple, realistic targets were set
• Focus on agriculture was the right choice for a newly independent country
• Foreign exchange reserves improved
• Food production rose significantly

✅ PLAN 2 : Second Five Year Plan (1956 - 1961)

• Build big factories and steel plants
• Rapid industrialisation of the country
• Planned by famous economist P.C. Mahalanobis (Mahalanobis Model)
• Big steel plants built at Bhilai, Durgapur, and Rourkela
• Focus shifted from agriculture to industry

🟡 VERDICT: MOSTLY SUCCESSFUL

• Industrial base was created
• Steel and heavy machinery sector established
• But agriculture was neglected slightly
• Foreign exchange reserves fell due to heavy imports

❌ PLAN 3 : Third Five Year Plan (1961 - 1966)

• Make India self-sufficient in food and industry
• Develop agriculture and wheat production
• Give more power to state governments
• Panchayat elections introduced

🔴 VERDICT: BIG FAILURE

• Sino-Indian War (China War) in 1962 - huge money spent on defense
• Indo-Pak War in 1965 - again military spending shot up
• Severe drought - crops failed, food shortage
• Economy went into deep crisis
• Result: Government declared "PLAN HOLIDAY" for 3 years (1966-69) - no Five Year Plan, only Annual Plans made

⏸️ PLAN HOLIDAY (1966 - 1969)

• Political instability and wars
• Severe drought and food crisis
• Economic emergency
• Indian Rupee was devalued in 1966 (lost value)
• USA stopped aid to India

• India asked for food aid from USA (PL-480 wheat)
• Green Revolution was started as an emergency measure
• HYV (High Yielding Variety) seeds introduced in wheat farming

🟡 PLAN 4 : Fourth Five Year Plan (1969 - 1974)

• Achieve growth without inflation
• Green Revolution to be expanded
• Make India self-sufficient in food

• Bank Nationalisation in 1969 - 14 major banks taken over by government
• Green Revolution became successful - wheat production rose a lot
• 1971 war with Pakistan - Bangladesh was created
• ISRO established (Indian Space Research Organisation)

🔴 VERDICT: FAILED TO MEET TARGET

• 1971 war cost a lot of money
• Drought again in some regions
• Oil price shock (1973) - global oil crisis hit India hard
• Inflation rose badly

✅ PLAN 5 : Fifth Five Year Plan (1974 - 1979)

• Direct attack on poverty
• 20-Point Programme launched by PM Indira Gandhi
• Minimum Needs Programme - basic needs for the poor
• National Highway Act passed
• Electricity and roads for villages
• SFDA (Small Farmers Development Agency) set up

• Emergency period (1975-77) - Indira Gandhi declared emergency
• Janata Party won 1977 elections and terminated the plan 1 year early in 1978

🟢 VERDICT: SUCCESSFUL

• Agricultural production improved
• Poverty programmes had real impact
• Garibi Hatao became a popular movement
• Infrastructure development began in villages

⏸️ ROLLING PLAN (1978 - 1980)

✅ PLAN 6 : Sixth Five Year Plan (1980 - 1985)

• Direct attack on rural poverty
• IRDP (Integrated Rural Development Programme) - helping poor families
• TRYSEM (Training Rural Youth for Self Employment)
• Minimum Needs Programme expanded
• Focus on technology and energy

🟢 VERDICT: SUCCESSFUL

• Strong political will (Indira Gandhi was focused)
• Good implementation of rural programmes
• Agricultural growth was stable
• Slow liberalisation of the economy began
• India became self-sufficient in food - no longer needed to beg for food aid

✅ PLAN 7 : Seventh Five Year Plan (1985 - 1990)

• Modernise industry using technology
• Increase food grain production
• Generate employment through Jawahar Rozgar Yojana
• Promote technology in farming and manufacturing
• Make India an independent economy by year 2000

• Rajiv Gandhi was PM - brought computer revolution to India
• MTNL established
• Maruti car production expanded
• India's IT sector started growing slowly

🟢 VERDICT: VERY SUCCESSFUL

• Technology push worked well
• Employment programmes reached villages
• Food production was at record levels
• India was becoming more modern and confident
• Private sector started growing

⏸️ ANNUAL PLANS (1990 - 1992)

• Severe political instability - 3 Prime Ministers in 2 years (V.P. Singh, Chandra Shekhar, P.V. Narasimha Rao)
• Balance of Payments Crisis 1991 - India had no money to pay for imports, gold was mortgaged to UK
• IMF loan had to be taken
• Economy was on the verge of collapse

• Liberalisation - opened the economy
• Privatisation - private companies allowed in more sectors
• Globalisation - opened doors to foreign companies
• Done by PM P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh
• This completely changed India's economy forever

✅ PLAN 8 : Eighth Five Year Plan (1992 - 1997)

• Build on the 1991 LPG reforms
• Control population growth
• Reduce poverty and generate employment
• Develop infrastructure - roads, power, telecom
• Human Resource Development
• Panchayats and Nagar Palikas given more powers (73rd and 74th Constitutional Amendments)

• India joined WTO on 1 January 1995
• Telecom sector opened to private players
• IT sector started booming
• Mobile phones introduced in India

🟢 VERDICT: BEST PLAN SO FAR (at that time)

• LPG reforms gave the economy huge energy
• Private sector investment poured in
• Foreign companies came to India
• IT sector in cities started growing fast
• Decentralisation gave power to local governments

🟡 PLAN 9 : Ninth Five Year Plan (1997 - 2002)

• Equal growth for all sections of society
• Empowerment of SC/ST/Women
• Primary education for all children
• Increase exports to earn foreign exchange
• Joint growth by public and private sector

• Kargil War 1999 with Pakistan - huge defense spending
• Pokhran Nuclear Tests 1998 - USA imposed sanctions on India
• Global economic slowdown
• Political instability - multiple coalition governments

🔴 VERDICT: FAILED TO MEET TARGET

• Kargil War costs
• US economic sanctions after nuclear tests
• Global slowdown affected India
• Poor coordination between centre and states
• Coalition politics slowed decision making

✅ PLAN 10 : Tenth Five Year Plan (2002 - 2007)

• Double India's per capita income in 10 years
• Reduce poverty by 5%
• Improve forest cover
• All children in school by 2007
• NHDP (National Highway Development Programme) - build highways
• Sarva Shiksha Abhiyan - Education for All

• Atal Bihari Vajpayee then Manmohan Singh were PM
• India's IT and BPO sector exploded
• "India Shining" campaign - India growing fast
• Golden Quadrilateral Highway Project connecting Delhi, Mumbai, Chennai, Kolkata

🟢 VERDICT: LARGELY SUCCESSFUL

• Strong economic environment after 1991 reforms paid off
• IT sector and services grew massively
• Infrastructure investment was high
• But rural India still lagged behind, farmers suffered (farmer suicides increased)

✅ PLAN 11 : Eleventh Five Year Plan (2007 - 2012)

• Growth must reach poor and rural people too, not just cities
• MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) - guaranteed 100 days of work per year to every rural family
• RTI Act (Right to Information) - citizens can ask government questions
• RTE Act (Right to Education) - free education for children 6-14 years
• Reduce malnutrition
• Better healthcare for poor

• Global Financial Crisis 2008 - hit India but India recovered faster than others
• India's GDP still grew at 8%

🟢 VERDICT: VERY SUCCESSFUL (best-performing plan)

• MNREGA was a game-changer for rural poor - crores of families benefited
• Despite global crisis, India maintained strong growth
• Focus on inclusion - benefits reached the bottom of society
• Education and RTI empowered common citizens
• Infrastructure kept improving

🟡 PLAN 12 : Twelfth Five Year Plan (2012 - 2017) - THE LAST PLAN

• Create 50 million new jobs outside farming
• Remove gender gap in school education
• Improve access to higher education
• Reduce child malnutrition by 50%
• Sustainable development - protect environment
• Energy security

• Planning Commission closed in 2015, NITI Aayog set up
• Modi Government came to power in 2014
• Make in India, Digital India, Swachh Bharat launched
• Plan formally ended in 2017

🟡 VERDICT: PARTIALLY SUCCESSFUL

• Global economic slowdown
• Infrastructure projects delayed
• Note Bandi (Demonetisation) in 2016 disrupted economy
• Planning Commission itself was shut down mid-plan - loss of direction
• Environmental targets not fully met

🔷 QUICK SCORECARD: SUCCESS vs FAILURE

🔷 REASONS WHY PLANS FAILED (Common Causes)

1. Wars - China War 1962, Pak War 1965 and 1971, Kargil 1999 all drained money from development
2. Natural Disasters - Droughts and floods destroyed agricultural targets
3. Political Instability - Coalition governments could not take strong decisions
4. Global Shocks - Oil crisis 1973, US sanctions 1998, Financial Crisis 2008
5. Poor Implementation - Money allocated but not properly spent
6. Corruption - Funds leaked before reaching target beneficiaries
7. Lack of Coordination - Centre and State governments did not cooperate well
8. Unrealistic Targets - Sometimes targets were too ambitious

🔷 REASONS WHY PLANS SUCCEEDED

1. Favourable Weather - Good monsoon = good harvest = less poverty
2. Strong Leadership - A focused PM and Finance Minister made a difference
3. Right Priorities - Matching the plan focus to what the country actually needed
4. Private Sector - After 1991, private investment boosted growth
5. Technological Change - Green Revolution, IT Revolution both added to growth
6. International Support - Foreign aid and investment when relations were good
7. Realistic Targets - 1st and 6th plans set achievable goals and beat them

🔷 OVERALL ACHIEVEMENTS OF ALL PLANS TOGETHER

• GDP grew from Rs. 2.79 lakh crore (1950) to over Rs. 135 lakh crore (2017)
• Life expectancy went from 32 years (1947) to 69 years (2017)
• Literacy rate went from 18% (1951) to 74% (2011)
• Poverty reduced from ~65% to about 22%
• India became the world's 6th largest economy
• Green Revolution made India self-sufficient in food
• IITs, IIMs, AIIMS - world-class institutions built
• Space programme, Nuclear programme, Defence all developed
• Infrastructure - roads, railways, airports, power plants all built

🔷 WHY FIVE YEAR PLANS WERE REPLACED BY NITI AAYOG

• It was too centralised - Delhi decided everything for all states
• Plans were rigid - couldn't change even if conditions changed
• States had no voice - felt forced to follow Delhi's decisions
• The world economy was moving too fast for a 5-year fixed plan
• Private sector had become very large and needed a different approach

• 15-Year Vision Document - long term goals
• 7-Year Strategy - medium term plan
• 3-Year Action Agenda - short term targets
• States are treated as partners, not subordinates

🔷 CONCLUSION (Nishkarsh)

• Economic planning is important but must be flexible
• Politics and wars can destroy even the best plans
• Real growth must reach the poor, not just the rich
• States must be partners in development, not just followers

Exam Tip: Most important plans for paper - 1st (Agriculture), 2nd (Mahalanobis/Industry), 3rd (Failure/Wars), 5th (Garibi Hatao), 8th (LPG Reforms), 11th (MNREGA/Inclusive Growth), 12th (Last Plan/Sustainable)