Five Year Plans of India - Economic Planning, Business Environment Video Lecture | Business Environment - B Com

five your plan a five-year plan is a
plan laid down by the government for
nation's economic and industrial
development it is a set of proposals for
running a country's economy this plan
contains goals which should be attained
by a government in a period of five
years a plan specifies the appropriate
use of resources of a nation it
comprises certain general goals as well
as some specific goals to be attained in
a certain period of time in India the
plans are for the period of five years
so they are called five-year plans in
India the plans also contain goals that
are to be accomplished in a period of 20
years such a long-term plan is called a
perspective plan
the goals of five-year plan include
growth modernization self-reliance and
equity this does not mean that only
these core goals are discussed in each
five-year plan but these aspects are
taken care of in every plan now let us
have a quick look at the basic goals of
our five-year plans namely growth
modernization self-reliance and equity
these are the pillars that would enable
our country to scale new heights in a
global scenario growth it relates to the
rise in production capacity of the
country it is a check on how much has
the production capacity of the country
grown let us understand one of the
parameters of growth namely GDP gross
domestic product gross domestic product
it is the market value of all the goods
and services produced in the country
during a year a constantly increasing
GDP is a good sign of economic growth
the GDP of a nation is formed from the
contribution of the different sectors to
the growth of the nation the different
sectors are agricultural industrial and
service
modernization modernization refers to
becoming technologically advanced
modernization should be adopted in every
sector of the economy but care needs to
be taken that it should not conflict
with other national goals self-reliance
self-reliance is the ability to perform
and take decisions by ourselves without
any additional need from external
factors the first seven five-year plans
give prominence to self-reliance where
it was stated that the goods which can
be produced in the country should not be
imported from other countries this was
essential to reduce the dependence of
our country on foreign countries also as
India had recently gained independence
it was necessary to protect our
industries from their foreign
counterpart
equity equity refers to giving equal
importance to all people in the society
it is absolutely necessary that everyone
is equal in the eyes of the law hence
each citizen of India is entitled to the
same rights whatever race or religion he
or she may belong to the Planning
Commission was set up by a resolution of
the Government of India in March 1950
the Commission was assigned the
responsibility of assessing the
available resources of the country
augmenting deficit resources keeping in
mind the data that was accumulated it
had to formulate plans for the most
effective and balanced utilization of
resources and determining priorities
Jawaharlal Nehru was the first chairman
of the Planning Commission
professor PC Mahalanobis was the most
important person in India's journey
towards planning he was among the many
recognized thinkers who contributed to
the invention of India's five-year plans
he was the mastermind behind the second
five-year plan which was a turning point
in developing planning in India he was
actually regarded as the architect of
Indian planning the current five-year
plan in India is the eleventh five-year
plan 2007 to 2012 this plan has been
termed as India's educational plan by
the Prime Minister of India because this
plan gives the highest importance to
education as a centered instrument for
achieving rapid and inclusive growth
inclusive growth means growth in all
sectors when people would start
recognizing the importance of education
and start educating their children all
are the goals of the five-year plans
would be achieved successfully people
would understand the importance of
modernization start giving equal
importance to everyone and become
self-reliant
the goal of the current five-year plan
is to ensure that India moves towards
raising public spending in education to
6% of the GDP our planners believe that
it is through Universal literacy access
to education and knowledge-based
Industrial Development that India will
believably march ahead to join the front
ranks of the great nations
it is thus imperative that as a nation
we ensure that everyone has an access to
good quality and standards in respect of
curriculum irrespective of the parents
ability to pay this would enable the
child to enhance their skills in their
respective fields of expertise beyond
the basic need for education to support
oneself and family in later years many
social ills occur in the vacuum of free
and accessible education no doubt our
planners have given the highest emphasis
to education in the current five-year
plan as it is clearly visible in the
adjacent bar graph in a nutshell for the
smooth functioning of any economy
planning plays an important role the
Planning Commission has been entrusted
with the responsibility of the creation
development and execution of India's
five-year plans india's five-year plans
are also supervised by the Planning
Commission India was one of the several
countries that won its freedom after
World War Two as the country finalized
its constitution the immature challenge
was to adopt an economic model the task
was daunting for a country as large as
India with no administrative experience
in the last 150 years
Neru accepted the soviet-style economic
reform system and indian bureaucracy
started implementing its own five-year
plans the success of the first two plans
bolstered India's belief in the merits
of socialism and the country began
nationalizing all its businesses ranging
from banking to steel to water to
electricity
other Asian economies such as Japan and
Korea grew in multiples of India's
growth rate while India found pride in
maintaining a tight control on the
private sector the outcome was finally
in 1991 India's foreign exchange reserve
fell to such low levels that India could
barely afford three weeks worth of
imports all these factors finally
prompted India's economic liberalism and
a move towards capitalism the current
dynamic India is the result of those
changes
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