Planning in India

Planning in India

1. Five Year Plans

1.1 Definition and Purpose

  • Five Year Plans (FYPs) are medium-term socio-economic development programs formulated by the Government of India to achieve specific economic and social goals.
  • Aimed at promoting industrialization, agricultural growth, and infrastructure development.
  • First introduced in 1951 under the leadership of Pt. Jawaharlal Nehru.

1.2 Key Features

  • Central Planning Authority (CPA) was the body responsible for the formulation of the plans.
  • Plans were based on GDP growth targets, employment generation, and infrastructure development.
  • Emphasis on self-reliance and planned economic growth.

1.3 Evolution of Five Year Plans

Plan Period Key Focus Notable Features
1st 1951–1956 Industrialization, agricultural growth First plan to lay foundation for industrial development
2nd 1956–1961 Industrialization, self-reliance Emphasis on heavy industries and self-reliance
3rd 1961–1966 Economic growth, poverty alleviation Shift towards more balanced growth
4th 1969–1974 Poverty alleviation, employment Focus on rural development and employment
5th 1974–1978 Poverty alleviation, food security Introduction of Garibi Hatao (Remove Poverty)
6th 1980–1985 Economic liberalization, structural adjustment Shift towards market-oriented reforms
7th 1985–1990 Economic liberalization, structural adjustment Continued focus on economic reforms
8th 1990–1995 Economic liberalization, structural adjustment Introduction of Liberalization, Privatization, and Globalization (LPG)
9th 1995–2000 Economic liberalization, structural adjustment Continued LPG reforms
10th 2000–2012 Sustainable development, inclusive growth Focus on inclusive growth, poverty reduction, and infrastructure development
11th 2012–2017 Sustainable development, inclusive growth Focus on inclusive growth, poverty reduction, and infrastructure development
12th 2017–2022 Sustainable development, inclusive growth Focus on inclusive growth, poverty reduction, and infrastructure development

1.4 Key Facts for Exams

  • First Five Year Plan (1951–1956): Laid the foundation for industrial development.
  • Second Five Year Plan (1956–1961): Emphasized self-reliance and heavy industries.
  • Third Five Year Plan (1961–1966): Shifted focus towards balanced growth.
  • Fifth Five Year Plan (1974–1978): Introduced Garibi Hatao.
  • Tenth Five Year Plan (2000–2002): Marked the start of the LPG reforms.
  • Eleventh Five Year Plan (2007–2012): Emphasized inclusive growth and poverty reduction.
  • Twelfth Five Year Plan (2012–2017): Continued focus on inclusive growth and infrastructure development.

2. NITI Aayog

2.1 Definition and Purpose

  • NITI Aayog (National Institution for Transforming India) is the policy think tank of the Government of India.
  • Replaced the Planning Commission in 2015 under the leadership of Narendra Modi.
  • Focuses on inclusive growth, sustainable development, and policy formulation.

2.2 Key Features

  • A non-statutory body with a chairperson and members.
  • Promotes collaboration between the central and state governments.
  • Focuses on data-driven policy-making, innovation, and capacity building.

2.3 Structure and Leadership

  • Chairperson: Appointed by the President of India.
  • Members: Includes Union Ministers, state chief ministers, and experts.
  • Chief Executive Officer (CEO): Oversees the day-to-day operations.

2.4 Key Initiatives

  • Smart Cities Mission
  • Digital India
  • Startup India
  • Make in India
  • Ayushman Bharat
  • Swachh Bharat Mission

2.5 Differences Between Planning Commission and NITI Aayog

Feature Planning Commission NITI Aayog
Status Statutory body Non-statutory body
Formation 1955 2015
Focus Central planning Collaborative planning
Leadership Planning Commission NITI Aayog
Approach Centralized planning Decentralized and participatory planning

2.6 Key Facts for Exams

  • NITI Aayog was established in 2015.
  • Replaced the Planning Commission.
  • Focuses on inclusive growth, sustainable development, and policy innovation.
  • Promotes collaboration between central and state governments.
  • Key initiatives include Smart Cities Mission, Digital India, and Startup India.
  • Chairperson is appointed by the President of India.
  • CEO is responsible for the day-to-day operations of NITI Aayog.