The Planning Commission of India is an Institution in the GOI which formulate India's Five-Year Plans.PM is the ex-fficio Chairman and has a nominated Deputy Chairman, who is given the rank of a full Cabinet Minister.Montek Singh Ahluwalia is presently the Deputy Chairman of the Commission.
The Planning Commission was set up in March, 1950 by a Resolution of the Government of India which defined the scope of its work in the following terms :
The Planning Commission will—
- make an assessment of the material, capital and human resources of the country, including technical personnel, and investigate the possibilities of augmenting such of these resources as are found to be deficient in relation to the nation's requirements ;
- formulate a Plan for the most effective and balanced utilisation of the country's resources ;
- on a determination of priorities, define the stages in which the Plan should be carried out and propose the allocation of resources for the due completion of each stage ;
- indicate the factors which are tending to retard economic development, and determine the conditions which, in view of the current social and political situation, should be established for the successful execution of the Plan ;
- determine the nature of the machinery which will be necessary for securing the successful implementation of each stage of the Plan in all its aspects ;
- appraise from time to time the progress achieved in the execution of each stage of the Plan and recommend the adjustments of policy and measures that such appraisal may show to be necessary ; and
- make such interim or ancillary recommendations as appear to it to be appropriate either for facilitating the discharge of the duties assigned to it ; or, on a consideration of the prevailing economic conditions, current policies, measures and development programmes ; or on an examination of such specific problems as may be referred to it for advice by Central or State Governments.
First Five-Year Plan (1951–1956)
In July, 1951 the Planning Commission presented a draft outline of a plan of development for the period of five years from April, 1951 to March, 1956.The Draft Plan was divided into two parts, the first involving an expenditure of Rs. 1,493 crores and consisting largely of projects in execution which were to be implemented in any case, and the second proposing an outlay of Rs. 300 crores which was to be undertaken if external assistance were available.
The total planned budget of
2356 crore was allocated to 7 broad areas:Irrigation and Energy (27.2%),
Agriculture and Community Development(17.4%)
Transport & Communication(24%)
Industry(8.4%)
Social Services(16.64%)
Land Rehabilitation(4.1%) and
For other sectors and services(2.5%)
The targeted Growth Rate was 2.1% of Annual GDP.the achieved growth rate was 3.6%
At the end of the plan period in 1956, five Indian Institues of Technology (IITs) were started as major technical institutions.
University Grants Commission(UGC)was set up to take care of funding and take measures to strengthen the higher education in the country.
Second Five-Year Plan (1956–1961)
The plan focused on industry, especially Heavy Industry.The plan attempted to determine the optimal allocation of investment between productive sectors in order to maximise long-run economic growth .
The total amount allocated under the second five year plan in India was Rs. 4,800 crore. This amount was allocated among various sectors:- Power and irrigation
- Social services
- Communications and transport
- Miscellaneous
Third Five-Year Plan (1961–1966)
The plan stressed on agriculture and improving production of wheat, but the brief Sino-Indian War of 1962 exposed weaknesses in the economy and shifted the focus towards the [Defence industry]. In 1965–1966, India fought a [Indo-Pak] War with Pakistan.Due to this there was a severe drought in 1965. The war led to inflation and the priority was shifted to Price Stabilisation. The construction of Dams continued. Many Cement and Fertilizer Plants were also built.Punjab began producing an abundance of Wheat.
Many Primary Schools were started in rural areas. In an effort to bring democracy to the grassroot level, Panchayat Elections were started and the States were given more development responsibilities.State electricity boards and state secondary education boards were formed. States were made responsible for Secondary and Higher Education. State road transportation corporations were formed and local road building became a state responsibility.
The target growth rate of GDP(gross domestic product)was 5.6%.The achieved growth rate was 2.2%
Fourth Five-Year Plan (1969–1974)
At this time Indira Gandhi was the PM and the Indira Gandhi Govt. Nationalised 14 major Indian banks and the Green Revolution in India advanced agriculture. In addition, the situation in East Pakistan (now Bangladesh) was becoming dire as the Indo-Pak War of 1971 and Bangladesh Liberation War took place.Funds earmarked for the industrial development had to be diverted for the war effort. India also performed the ''Smiling Buddha Underground Nuclear Test'' in 1974, partially in response to the USA deployment of the Seventh Fleet in the Bay of Bengal.. (The fleet had been deployed to warn India against attacking West Pakistan and extending the war)
Target Growth: 5.7% Actual Growth: 3.30%.The achieved growth rate was 2.2%
Fifth Five-Year Plan (1974–1979)
Stress was by laid on Employment,Poverty Alleviation and Justice.The plan also focused on Self-Reliance in Agriculture Production and Defense.In 1978 the newly elected Morarji Desai Govt. rejected the plan.
Electricity Supply Act was enacted in 1975, which enabled the Central Government to enter into power generation and transmission.
The Indian National Highway System was introduced for the first time and many roads were widened to accommodate the increasing Traffic.
Tourism also expanded.
Target Growth: 4.4% Actual Growth: 5.0%
Sixth Five-Year Plan (1980–1985)
Seventh Five-Year Plan (1985–1990)
Eighth Five-Year Plan (1992–1997)
Ninth Five-Year Plan (1997–2002)
Tenth Five-Year Plan (2002–2007)
Eleventh Five-Year Plan (2007–2012)
Planning Commission has set an "absurdly low" national poverty line of Rs. 22.40 per day for an adult in rural areas and Rs. 28.65 per day for an adult in urban areas in 2009-10.Anyone spending more that this is being categorised as non-poor.Planning Commission claims that the proportion of BPL persons has gone down by 7 per cent between 2004-05 to 2009-10
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