[ecis2016.org] Read on to know about the Panchvarshik Yojana or the Five Year Plan launched by the government, the benefits and details of the various five year plans in India.
The Panchvarshik Yojana, or Five-Year Plan, was launched by the Indian government in order to promote the country’s economic and social growth. Performance indicators were set up to judge whether the five year plans were being successful in their implementation.
You are reading: Panchvarshik Yojana: All you need to know
It is a part of coordinated and integrated national economic initiatives, and there are now 13 distinct Panchvarshiya Yojanas. By offering facilities to many sectors, the project intends to encourage agricultural growth, provide varied job possibilities, and enhance existing resources.
Panchvarshiya Yojana: Characteristics of Five-Year Plans
- These projects target social fairness, poverty alleviation, employment, modernisation, etc.
- The fundamental purpose of these five-year plans is to improve both the country’s economic status and the quality of life of its residents.
- They increase output, optimise resource allocation, and create jobs.
Panchvarshiya Yojana: Benefits of the Five-Year Plans
- The various schemes launched under the programme led to increased production, proper allocation of resources and job opportunities.
- India’s mineral wealth was also being increasingly exploited and remote regions with reserves of rare metals were tapped.
- Once the indigenous mineral wealth was tapped, power lines were erected, and electricity was being produced – the rise of heavy industries started taking place.
- Telecommunication became a primary factor in electrical and electronic systems, which further boosted communication between various parts of the country and brought the country under a unified network.
- India became highly adept at devising heavy machineries and industrial parts which could be used in other industries. Thus, a synergistic ecosystem was born.
- India started concentrating on its military power and tested its ammunition and firepower in order to demonstrate that they are not far behind if any hostile step is taken against the country.
- The growth in industrial power – from heavy electrical machineries to microchips and micro-electronics was tremendous.
First Plan (1951-1956)
Prime Minister Jawaharlal Nehru launched the first five-year plan in 1951 and led the Planning Commission to overcome food and grain shortages. The agriculture sector received a lot of attention and the foundation stones for five steel factories were also laid during this time.
The goals of the Panchvarshiya Yojana entailed achieving food grain self-sufficiency in the shortest amount of time while maintaining inflationary control and assisting in refugee resettlement.
Second Plan (1956 -1961)
During the second Five Year Plan, the priority changed from agricultural to industry, with a focus on laying the groundwork for increased domestic manufacturing. The administration set a goal of raising the country’s national revenue by 25% along with the public’s living standards. The second Panchavarshi Yojana also aimed to offer optimal investment allocations in productive sectors to optimise long-term economic growth.
The goal was to establish a closed economy where imported capital goods are the dominant source of commerce. This strategy resulted in the development of three huge steel plants: Bhilai, Durgapur, and Rourkela.
Third Plan (1961-1966)
The government planned to strengthen the agricultural sector and expand the nation’s wheat output during the third Panchvarshiya Yojana. However, the Sino-Indian conflict in 1962 exposed several fissures and vulnerabilities in the Indian economy. The government decided to concentrate more on the defence business.
During this time, various cement and fertiliser facilities were built. A considerable quantity of wheat production was also established in Punjab as a result of the beginnings of the green revolution. This was done to help enhance the agricultural industry. The target for domestic product (GDP) growth was set at 5.6%. However, the actual rate of growth was 2.84%.
Plan Holidays (1966-1969)
Read also : Post Office recurring deposit: Features and rates
The government was compelled to proclaim ‘plan holidays’ due to the Third Plan’s catastrophic failure. During this time, three annual plans were developed. The problem of drought arose in 1966–67. Agriculture, its related activities, and the industrial sector were all given equal attention. The Indian government announced ‘Rupee Devaluation’ to boost the country’s exports.
Fourth Plan (1969-1974)
During the fourth Panchvarshiya Yojana, the government led by Prime Minister Indira Gandhi nationalised 14 major Indian banks, and the Green Revolution improved the country’s agricultural situation. Funds intended for industrial growth were redirected to strengthen the army. The fourth five-year plan’s growth target rate was 5.7%, although only 3.3% was actually achieved.
Fifth Plan (1974-1978)
This strategy emphasised self-sufficiency in agriculture production and protection. On October 2, 1975, the Regional Rural Bank was established. The goal of this policy was to reduce social, economic, and geographic inequalities while also aiming for poverty reduction.
Rolling Plan (1978-1980)
The Rolling Plan had three plans. The Rolling Plan consisted of the first book which had the annual budget and the second was a plan for a certain number of years (might be 3, 4 or 5 years). The second plan was dynamic and kept changing as per the economic situation of the country. The third plan was a prospective long-term plan, maybe 10, 15 or 20 years. Rolling plans are advantageous because they are flexible and can easily overcome rigidity of the five year plans. It’s disadvantage was its complexity.
Sixth Plan (1980-1985)
The plan’s main purpose was to reduce poverty while simultaneously encouraging economic development, modernisation, and social fairness in the country. For the first time, the Janata Party published the sixth Five-Year Plan as a ‘continuous plan’ from 1978 to 1983. When Indira Gandhi’s new government took office in 1980, this plan was abandoned, and the new Sixth Five-Year Plan (1980-1985) was implemented. As a result of this approach, inflation was reduced from 16.7% to 5%.
Seventh Plan (1985-1990)
This initiative was created in order to increase production and create jobs in India. The Indira Awas Yojana (1985-86), Jawahar Rozgar Yojana (1989), and Nehru Rozgar Yojana were all implemented under the Seventh Five Year Plan (1989). The 7th Plan sought to help rural communities, and achieve socialism along with large-scale energy production.
Annual Plans (1990-1992)
The eight five year plan could not be implemented, so two annual plans were implemented: 1990-91 and 1991-92.
Eighth Plan (1992-1997)
Under this plan, human resource development, employment or education, and public health were given top emphasis in the country. The goal of this initiative was to eradicate illiteracy and universalise primary education among people aged 15 to 35 years old.
Under the eighth Panchavarshiya Yojana, the Indian economy’s progressive liberalisation was balanced by rapidly growing deficits and foreign debt. This programme covers population control, poverty reduction, job creation, infrastructure improvement, institutional building, tourist management, human resource development, Panchayat Raj, Municipalities, NGOs, decentralisation, and public participation.
Ninth Plan (1997-2002)
The main purpose of the ninth Five-Year Plan was to achieve social justice and economic prosperity. To achieve this goal, employment, self-sufficiency, and regional balance were prioritised.
Read also : All about home improvement loans in India
The ninth Panchavarshiya yojana introduced the following schemes: Swarna Jayanti Shahari Rozgar Yojana, Jawahar Gram Samridhi Yojana, Swarna Jayanti Gram Swarozgar Yojana, and Pradhan Mantri Gramodaya Yojana.
This plan accomplished rapid industrialisation, human development, full-scale employment, poverty reduction, and self-reliance on local resources. The actual outcome in the agriculture sector was just 2.1%, compared to the ninth plan’s aim of 3.9%.
Tenth Plan (2002-2007)
This initiative provided meaningful and high-quality jobs, decreasing the poverty rate by 5% by 2007. Agriculture, construction, tourism, small businesses, retail, information technology, and related communication services are just a few of the areas developed. This plan also aimed to achieve access to basic education by 2007.
Eleventh Plan (2007-2012)
The eleventh Five Year Plan began on April 1, 2007 and was in effect until March 31, 2012. The main purpose of the strategy was to promote quick and equitable growth. For the state’s Five Year Plans, the Planning Commission had approved a total budget of Rs 71731.98 crore. During this time, underprivileged people living in rural areas were given access to electricity.
Twelfth Plan (2012-2017)
As the global economic crisis had an influence on India’s economy, the Planning Commission set a goal of achieving 10% annual economic growth.
According to the 12th Five Year Plan, the economic sector covered agriculture, industry, energy, transportation, communication, rural development, and urban development, while the social sector included health, education, employment, and skills. The topics of women’s agency, child rights, and social inclusion were all brought up.
In the twelfth Five Year Plan, the annual growth rate was kept at 8.2%.
Thirteenth Plan (2017-2022)
This five year plan targets social justice, poverty reduction, full employment, and modernisation. Resources, books, and classrooms would be rebuilt as part of this effort, and remedial classes would be offered for weaker students from scheduled castes, scheduled tribes, and other backward groups.
Students who are studying for national and state-level eligibility tests, civil service exams, and other competitive exams will receive assistance. The field’s experts will be contacted. For career counselling, a separate fund would be established.
Copyright belongs to: ecis2016.org
Category: Must Knows