Five Year Plans - Quick Revision
Five Year Plans - Quick Revision
Key Points (One-Liners)
- 1st FYP (1951-56): Inspired by USSR; focused on agriculture & irrigation; Harrod-Domar model.
- 2nd FYP (1956-61): “Mahalanobis Model” – heavy industry & rapid industrialisation.
- 3rd FYP (1961-66): “Gadgil Yojana”; war & drought → plan holiday (1966-69).
- Plan Holiday: Annual Plans (1966-69); devaluation of rupee (1966).
- 4th FYP (1969-74): “Garibi Hatao”; growth rate 3.3% → nick-named “Hindu rate of growth”.
- 5th FYP (1974-79): Drafted by C. Rangarajan; introduced Rolling Plan (1978 by Morarji Govt).
- Mini 6th Plan (1978-80): 5-year Rolling plan concept; later junked.
- 6th FYP (1980-85): Actual 6th plan; stress on infrastructure & poverty removal; first plan with 20-point programme.
- 7th FYP (1985-90): “Indicative planning”; growth 5.8%; seeds of LPG reforms.
- 8th FYP (1992-97): Post-liberalisation plan; WTO adjustment; priority to human resources.
- 9th FYP (1997-2002): “Growth with social justice”; target 6.5%, achieved 5.4%.
- 10th FYP (2002-07): Double per-capita income in 10 yrs; aim 8% growth; introduced NHRM, JNNURM.
- 11th FYP (2007-12): “Inclusive growth”; target 9% growth; MNREGA, RTI, Aadhaar seeding.
- 12th FYP (2012-17): “Faster, Sustainable & More Inclusive growth”; target 8%, achieved 7%.
- NITI Aayog replaced Planning Commission (1 Jan 2015) → no 13th FYP; 3-year Action Plans started.
- Only 10th, 11th & 12th plans touched double-digit sectoral growth in services.
- Highest plan outlay ever: 12th FYP (~`44 lakh cr).
- Only plan to be launched & completed by same political party: 11th FYP (UPA-II).
| Formula/Rule |
Application |
| Growth Rate = (GDPend – GDPstart)/GDPstart × 100 |
Quick check of plan achievement |
| Plan Outlay = Centre + States + Extra-budgetary |
Remember total resources |
| ICOR (Incremental Capital-Output Ratio) = Investment ÷ GDP growth |
Lower ICOR ⇒ better efficiency |
| Poverty Reduction % = (Povertyinitial – Povertyfinal)/Povertyinitial × 100 |
Used in 7th-12th plans |
| Plan Holiday Rule: 3 Annual Plans = 1 Gap Year |
1966-69 gap after 3rd plan |
| Rolling Plan = Annual review & 1-yr forward roll |
Introduced 1978-80 |
| “Hindu Rate of Growth” ≈ 3.5% |
Coined by Raj Krishna for 1950-80 avg |
| 20-Point Programme launched with 6th Plan |
Poverty removal monitor |
| 12th Plan base-year price = 2011-12 |
GDP series changed |
| NDC approval mandatory before plan launch |
Constitutional practice |
Memory Tricks
- “USSR-1, Mahala-2, Gadgil-3, Garibi-4, Roll-5, 20-point-6, Indicative-7, Liberal-8, Justice-9, Double-10, Inclusive-11, Faster-12.”
- Plan Holiday = “ABC” – Annual Plans Between 3rd & 4th.
- Rolling Plan: think “RR” – Rolling by Rajiv (1980-85) rectified Morarji’s Roller-coaster.
- Growth targets: 8-9-8 (10th-11th-12th) – like a mobile OTP!
- NITI birth: 1-1-15 (1 Jan 2015) – New Year, New Body.
Common Mistakes
| Mistake |
Correct Approach |
| Calling 1978-80 plan the “6th Plan” |
It was a mini/rolling plan; actual 6th started 1980 |
| Confusing 2nd & 3rd plan models |
2nd = Mahalanobis; 3rd = Gadgil |
| Stating 13th FYP existed |
No 13th plan; NITI replaced PC in 2015 |
| Attributing “Hindu rate” to 4th plan |
Term refers to whole 1950-80 era, not single plan |
| Mixing annual plans with plan holiday |
1966-69 = 3 separate annual plans, not one 3-yr plan |
Last Minute Tips
- Glance at plan periods & theme words – 1-liner table above is enough.
- Remember only two plans with >8% service growth: 11th & 12th.
- In options, if you see “13th FYP” – instantly mark “None of these”.
- Growth targets vs actual: 9th, 10th, 12th missed by ~1% – safe eliminator.
- One-marker: NITI Aayog date (1-1-2015) & 20-Point Programme (6th Plan) – 99% asked.
Quick Practice (5 MCQs)
1. Which Five Year Plan was based on the Mahalanobis model?
> 2nd Five Year Plan
2. The term “Hindu rate of growth” refers to the average growth rate of which period?
> 1950-80
3. During which plan was the Rolling Plan concept first introduced in India?
> 1978-80 (Mini plan, Morarji Govt)
4. NITI Aayog replaced the Planning Commission on –
> 1 January 2015
5. The slogan “Faster, Sustainable and More Inclusive Growth” was associated with –
> 12th Five Year Plan
BETA
