Five Year Plans
Economics · पंचवर्षीय योजनाएं
📋Quick Overview
India adopted centralized economic planning after independence, inspired by the Soviet model. The Planning Commission was set up on 15 March 1950 by a Cabinet Resolution (NOT by Parliament or Constitution) with PM Jawaharlal Nehru as its first Chairman. India had 13 Five Year Plans from 1951 to 2017. The Planning Commission was replaced by NITI Aayog on 1 January 2015. The 12th Plan (2012-17) was the last Five Year Plan.
⭐
Planning Commission was a NON-CONSTITUTIONAL, NON-STATUTORY body — created by executive resolution, not by law or Constitution
⭐
PM was the ex-officio Chairman of the Planning Commission. Deputy Chairman was the de facto head who held Cabinet rank.
📖All Five Year Plans at a Glance
| Plan | Period | Model/Focus | Key Points |
|---|---|---|---|
| 1st Plan | 1951-56 | Harrod-Domar Model | Agriculture & dams (Bhakra Nangal, Hirakud, Damodar Valley). Target growth 2.1%, achieved 3.6% |
| 2nd Plan | 1956-61 | Mahalanobis Model | Heavy industry & industrialization. Bhilai, Durgapur, Rourkela steel plants. Industrial Policy Resolution 1956 |
| 3rd Plan | 1961-66 | Gadgil-Mahalanobis | Self-reliant economy. Failed due to China war (1962), Pak war (1965), drought. Green Revolution seeds sown |
| Plan Holiday | 1966-69 | Annual Plans | 3 annual plans due to wars & drought. Green Revolution started (1966-67). Rupee devalued 1966 |
| 4th Plan | 1969-74 | Gadgil Formula | Growth with stability & self-reliance. Garibi Hatao slogan. Bank nationalization (1969). Growth target 5.7%, achieved 3.3% |
| 5th Plan | 1974-79 | D.P. Dhar Model | Poverty removal & self-reliance. 20-Point Programme. Terminated 1 year early by Janata Govt (1978) |
| Rolling Plan | 1978-80 | Janata Govt | Janata Govt rejected 5th Plan. Rolling Plan concept (D.T. Lakdawala). Abandoned when Congress returned |
| 6th Plan | 1980-85 | Growth-focused | Focus on poverty eradication. IRDP, NREP launched. Achieved 5.7% growth |
| 7th Plan | 1985-90 | Growth in productivity | Emphasis on food, work, productivity. Jawahar Rozgar Yojana. First plan to target employment. Achieved 6.01% |
| Plan Holiday | 1990-92 | Annual Plans | Political instability (VP Singh, Chandrashekhar govts). BOP crisis. LPG reforms 1991 |
| 8th Plan | 1992-97 | Rao-Manmohan Model | First plan after LPG reforms (1991). Human development focus. Achieved highest growth 6.8%. Panchayati Raj strengthened |
| 9th Plan | 1997-2002 | Equity + Growth | Growth with social justice & equality. Targeted 7%, achieved 5.4% |
| 10th Plan | 2002-07 | Montek Model | First plan to set GDP target of 8%. Targeted reduction of poverty ratio by 5%. Achieved 7.6% |
| 11th Plan | 2007-12 | Inclusive Growth | 'Faster & More Inclusive Growth'. Targeted 9%, achieved 8%. MGNREGA implementation strengthened |
| 12th Plan | 2012-17 | Faster, Sustainable, Inclusive | LAST Five Year Plan. Targeted 8%, achieved ~6.5%. Replaced by NITI Aayog vision documents |
📝Key Facts & Firsts
- •1st Plan exceeded its target — ONLY plan to over-achieve significantly (target 2.1%, achieved 3.6%)
- •2nd Plan introduced Mahalanobis Model (P.C. Mahalanobis) — heavy industry focus, Nehruvian socialism
- •3rd Plan was the first FAILED plan — wars and drought derailed it
- •5th Plan was TERMINATED one year early by Janata Government in 1978
- •8th Plan was the most successful — highest achieved growth rate of 6.8%
- •There were TWO Plan Holidays: 1966-69 (wars/drought) and 1990-92 (political crisis/BOP crisis)
- •LPG Reforms (Liberalization, Privatization, Globalization) started in 1991 under PM Narasimha Rao & FM Manmohan Singh
- •First Deputy Chairman of Planning Commission: Gulzarilal Nanda. Last: Montek Singh Ahluwalia