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The Five Year Plans- 3 Notes | Study Indian Economy for UPSC CSE - UPSC

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Tenth Five Year Plan: (2002-2007)

  1. Reatiction of poverty ratio by 5 percentage points by 2007 and by 15 percentage points by 2012.
  2. Providing gainful and high quality employment at least to addition to the labour force over the Xth Plan period.
  3. All children in school by 2003, all children to complete 5 years of schooling by 2007.
  4. Reduction in gender gaps in literacy and wage rates by at least 50 per cent by 2007.
  5. Reduction in the decadal rate of population growth between 2001 and 2011 to 16-2 per cent.
  6. Increase in literacy rates to 75 per cent within the plan period.
  7. Reduction of Infant Mortality Rate (IMR) to 45 per 1000 live births by 2007 and to 28 by 2012.
  8. Reduction of Maternal Mortality Ratio (MMR) to 2 per 1000 live births by 2007 as to 1 by 2012.
  9. Increase in forest and tree cover to 25 per cent by 2007 and 33 per cent by 2012.
  10. All villages to have sustained access to potable drinking water within the plan period.
  11. Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012. 
  12. The total outlay envisaged for fee 10th Plan was Rs. 19,68,815 crore at 2001-02 prices comprising of an outlay of Rs. 7,06,000 crore for the Central Plan, Rs. 5,88,325 crore for the States' plans and Rs. 6,74,490 crore for the public sector enterprises. 
  13. The budgetary support for this outlay was envisaged at Rs. 9,94,060 crore.
  14. The average total expenditure of the Central Government envisaged in the 10th Plan was 15.6 per cent of GDP comprising of 10.7 per cent of non-plan expenditure and 4-9 per cent of budgetary support to the plan. Gross tax revenue envisaged was 94 per cent of GDP
  15. Fiscal and revenue deficits were projected at 4.7 per cent and 2.9 per cent of GDP respectively. 
  16. The 10th Plan had suggested that policy initiatives regarding public finances should be taken up at all the three levels, the Central level, the State level and some policies at both the Central and State level.
  17. The policy measures suggested at Central level are improved enforcement of income tax administration, elimination of exemptions under corporation tax, expansion in the coverage of service tax, continuation of the current policy of moving to a single excise rate, implementation of reco-mmendations of the Expenditure Reforms Commission, better targeting of food subsidy, curtailment of pay bill of the Central Government. reduction in the staff strength, restricting borrowings etc. 
  18. At the State leve, introduction of Value Added Tax, raising of user charges and improvement in the tax-GDP ratio were suggested.


Growth Performance in Various Plan

(in % per annum)




First Plan (1951-56)



Second Plan (1956-61)



Third Plan (1961-66)



Fourth Plan (1969-74)



Fifth Plan (1974-79)



Sixth Plan (1980-85)



Seventh Plan (1985-90)



Eighth Plan (1992-97)



Ninth Plan (1997-2002)



Tenth Plan (2002-07)



Eleventh Plan (2007-12)



Eleventh Five Year Plan (2007-12)

  • The total outlay of the 11th Plan (froth centre and state and including their PSEs) has been placed at Rs. 3644718 crore which is more than double of the total outlay of the previous 10th Plan.
  • In this proposed outlay, the contributions of Central Government and state governments will be Rs. 2156571 crore and Rs. 1488147 crore respectively (i.e. 59.2% and 40.8% of the total outlay respectively).
  • Gross Budgetary Support (GBS), which is the centre's support to the Plan, has been fixed at Rs. 1421711 crore (at 2006-07 prices) up from Rs. 810400 crore in the previous Plan.
  • 74.67% of GBS will be for priority sectors and the rest 25.33% will be for non-priority sector. In 10th Plan this allocation share was 55.20% and 44.80% respectively.
  • Central assistance to states and UTs’ plan works out to be Rs. 324851 crore. The total resources available for the central plan are projected at Rs. 2156571 crore.

Income and Poverty

  1. GDP growth target of 9% p.a.
  2. Increase agricultural GDP growth rate to 4% per year.
  3. To enhance domestic investment from 35.9% of GDP in 2006-07 to an average of 36.7% of GDP in plan period.
  4. To raise industrial growth rate from 9.2% in the 10th plan to between 10% and 11%.
  5. Manufacturing sector is targeted to grow at 12% p.a.
  6. Create 58 million new work opportunities.
  7. Reduce educated unemployment to below 5%.
  8. Raise real wage rate of unskilled workers by 20 per cent.
  9. Reduce the headcount ratio of consumption poverty by 10 percentage points.


  1. Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12.
  2. Develop minimum standards of educational attainment in elementary school, and by regular testing monitor effectiveness of education to ensure quality.
  3. Increase literacy rate for persons of age 7 years or more to 85%.
  4. Lower gender gap in literacy to 10 percentage points.
  5. Increase the percentage of each cohort going to higher education from the present 10% to 15% by the end of the 11th Plan.


  1. To raise public health spending to 2% of GDP during plan period.
  2. Reduce infant mortality rate (IMR) to 28 and maternal mortality ratio (MMR) to 1 per 1000 live births.
  3. Reduce total fertility rate to 2.1 by the end of the plan.
  4. Provide clean drinking water for all by 2009 and ensure that there are no slip-backs by the end of the 11th Plan.
  5. Reduce malnutrition among children of age group 0-3 to half its present level.
  6. Reduce anemia among women and girls by 50% by the end of the 11th Plan.

Women and Children

  1. Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17.
  2. Ensure that at least 33 per cent of the direct and indirect beneficiaries of all government schemes are women and girl children.
  3. Ensure that all children enjoy a safe childhood, without any compulsion to work.


  1. To achieve telecom subscriber base of 600 million and a rural teledensity of 25%.
  2. Ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power by the end of the Plan.
  3. Ensure all weather road connection to all habitation with population 1000 and above (500 in hilly and tribal areas) by 2009, and ensure coverage of all significant habitation by 2015.
  4. Connect every village by telephone by November, 2007 and provide broadband connectivity to all village by 2012.
  5. Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by 2016-17.


  1. Increase forest and tree cover by 5 percentage points.
  2.  Attain WHO standards of air quality in all major cities by 2011-12.
  3. Treat all urban waste water by 2011-12 to clean river waters.
  4. Increase energy efficiency by 20 percentage points by 2016-17.

12th Five Year Plan (2012-17)
Economic Growth

  1. Real GDP Growth Rate of 8.0 per cent.
  2. Agriculture Growth Rate of 4.0 per cent. 
  3. Manufacturing Growth Rate of ( 7.1 percent.
  4. Industrial Sector Growth Rate of 7.6 per cent.
  5. Service Sector Growth Rate of 9.0 per cent.
  6. Every State must have a higher average growth rate in the Twelfth Plan than that achieved : in the Eleventh Plan. 

Poverty and Employment

  1. Head-count ratio of consumption poverty to be reduced by 10 percentage points over the preceding estimates by the end of Twelfth Five Year Plan.
  2. Generate 50 million new work opportunities in the non-farm sector and provide skill cer tification to equivalent numbers during the Twelfth Five Year Plan.


  1. Mean Years of Schooling to increase to seven years by the end of Twelfth Five Year Plan.
  2. Enhance access to higher education by creating two million additional seats for each age cohort aligned to the skill needs of the economy. 
  3. Eliminate gender and social gap in school enrolment (that is, between girls and boys, and between SCs, STs, Muslims and the rest of the population) by the end of Twelfth Five Year Plan.


  1. Reduce IMR to 25 and MMR to 1 per 1000 live births, and improve Child Sex Ratio (0–6 years) to 950 by the end of the Twelfth Five Year Plan.
  2. Reduce Total Fertility Rate to 2.1 by the end of Twelfth Five Year Plan.
  3. Reduce under-nutrition among children aged 0-3 years to half of the NFHS-3 levels by the end of Twelfth Five Year Plan.

Infrastructure, Including Rural Infrastructure

  1. Increase investment in infrastructure as a percentage of GDP to 9 per cent by the end of Twelfth Five Year Plan.
  2. Increase the Gross Irrigated from 90 million hectare to 103 million hectare by the end of Twelfth Five Year Plan. 
  3. Provide electricity to all villages and reduce AT&C losses to 20 per cent by the end of Twelfth Five Year Plan.
  4. Connect all villages with all-weather roads by the end of Twelfth Five Year Plan.]
  5. Upgrade national and state high-ways to the minimum two-lane standard by the end of Twelfth Five Year Plan.
  6. Complete Eastern and Western Dedicated Freight Corridors by the end of Twelfth Five Year Plan.
  7. Increase rural teledensity to 70 per cent by the end of Twelfth Five Year Plan.
  8. Ensure 50 per cent of rural popu-lation has access to 55 LPCD piped drinking water supply and 50 per cent of gram panchayats achieve the Nirmal Gram Status by the end of Twelfth Five Year Plan.


Key Parameters of 12th Five Year Plan

Gross Domestic Savings (as % of GDP  at current prices)


Investment Rate (as % of GDP at current prices)


Total Consumption Expenditure (as % of GDP at current prices)


Merchandise Export (as % of GDP at current prices)


Merchandise Import (as % of GDP at  current prices)


Merchandise Trade Deficit (as % of GDP at current prices)

(–) 9.2%

Net Service Export (as % of GDP at  current prices)


Current Account Balance (as % of GDP  at current prices)

(–) 3.4%

Capital Account Balance (as % of GDP  at current prices)


Environment and Sustainability

  1. Increase green cover (as measured by satellite imagery) by 1 million hectare every year during the Twelfth Five Year Plan.
  2. Add 30000 MW of renewable energy capacity in the Twelfth Plan.
  3. Reduce emission intensity of GDP in line with the target of 20 per cent to 25 per cent reduction by 2020 over 2005 levels.

Service Delv/try

  1. Provide access to banking ser-vices to 90 per cent Indian households by the end of Twelfth Five Year Plan.
  2. Major subsidies and welfare related beneficiary payments to be shifted to a direct cash trans-fer by the end of the Twelfth Plan, using the Aadhar platform with linked bank accounts.

Strategy Challenges

  1. Enhancing the Capacity for Growth
  2. Today, India can sustain a GDP growth of 8 per cent a year. Increasing this to 9 or 10 per cent will need more mobilization of investment resources; 
  3. better allocation of these resources through more efficient capital markets
  4. higher investment in infrastructure through both public and PPP routes; and more efficient use of public resources.

Enhancing Skills and Faster Generation of Employment

  1. It is believed that India's economic growth is not generating enough jobs or livelihood opportunities. At the same time, many sectors face manpower shortages. 
  2. To address both, we need to improve our education and training systems; create efficient and accessible labour markets for all skill categories; and encourage the faster growth of small and micro-enterprises.

Managing the Environment — Environmental and ecological degradation has serious global and local implications, especially for the most vulnerable citizens of our country. Encourage responsible behaviour, compromising on our developmental need.

Markets for Efficiency and Inclusion— Open, integrated, and well-regulated markets for land, labour, and  capital and for goods and services are essential for growth, inclusion, and sustainability.  We have many sectors were markets are non-existent or incomplete, especially those which are dominated by public provisioning.

Decentralisation, Empowerment and Information—Greater and more informed participation of all citizens in decision-making, enforcing accountability, exercising their rights and entitlements; and determining the course of their lives is central to faster growth, inclusion, and sustainability.

 Technology and Innovation—

  1. Technological and organizational innovation is the key to higher productivity and competitiveness. 
  2. We have to encourage and incentivize innovation and their diffusion in academia and government as well as in enterprises of all sizes.

Securing the Energy Future for India— 

  1. Faster and more inclusive growth will require a rapid increase in energy consumption. 
  2. Since we have limited domestic resources, how can we meet this need equitably and affordably without compromising on our environment ?

Accelerated Development of Transport Infrastructure— 

  1. Our inadequate transport infrastructure results in lower efficiency and productivity; higher transaction costs; and insufficient access to our large national market. 
  2. We have to create an efficient and widespread multi-modal transport network.

Rural Transformation and Sustained Growth of Agriculture— 

  1. Rural India suffers from poor infrastructure and inadequate amenities. 
  2. Low agricultural growth perpetuates food and nutritional insecurities, which also reduces rural incomes. 
  3.  We have to encourage and support our villages in improving their living and livelihood conditions in innovative ways.

Managing Urbanization—

  1. Most of our metros and cities are under severe stress with inadequate social and physical infrastructure coupled with worsening pollution. 
  2. Migration pressures are likely to increase. 
  3. We have to make our cities more liveable.

Improved Access to Quality Education— 

  1. Educational and training facilities have been increasing rapidly. However, access, affordability, and quality remain serious concerns. Employability is also an issue. 
  2. We have to improve the quality and the utility of our education, while ensuring equity and affordability.

Better Preventive and Curative Healthcare—

  1. India’s health indicators are not improving as fast as other socio-economic indicators.
  2. Good healthcare is perceived to be either unavailable or unaffordable. 

We have to improve healthcare conditions, both curative and preventive, especially relating to women and children.


ASEAN Summits

First ASEAN Summit, Bali, February 23-24,1976

Second ASEAN Summit, Kuala Lumpur, August 4-5,1977

Third ASEAN Summit, Manila, December 14-15,1987

Fourth ASEAN Summit, Singapore, January 27-29,1992

Fifth ASEAN Summit, Bangkok, December 14-15,1995

Sixth ASEAN Summit, Hanoi, December 15-16.1998

Seventh ASEAN Summit, Bandar Seri Begawan, December 5-6, 2001

Eighth ASEAN Summit, Phnom Penh, November 4-5, 2002

Ninth ASEAN Summit, Bali, October 7-8, 2003

Tenth ASEAN Summit, Vientiane, November 29-30, 2004

Eleventh ASEAN Summit, Kuala Lumpur, December 12-14, 2005

Twelfth ASEAN Summit, Cebu, Philippines, January 9-15, 2007

Thirteenth ASEAN Summit, Singapore, November 18-22, 2007

Fourteenth ASEAN Summit, Chaam, Thailand, February 26-March 1, 2009

Fifteenth ASEAN Summit, Cha-am Hua Hin, Thailand, October 23-25, 2009

Sixteenth ASEAN Summit, Hanoi, Vietnam, April 8-9, 2010

Seventeenth ASEAN Summit, Hanoi, Vietnam, October 28-31, 2010

Eighteenth ASEAN Summit, Jakarta, Indonesia, May 7-8, 2011

Nineteenth ASEAN Summit, Bali, Indonesia, November 17-19, 2011

Twentieth ASEAN Summit, Phnom Penh, Cambodia, April 3-4, 2012

Twenty First, Phnom Penh, Cambodia November 18, 2012

Twenty Second, Bandar Seri Begawan, Brunei Darussalam April 24-25, 2013

Twenty Third, Bandar Seri Begawan, Brunei Darussalam-Oct. 9-10, 2013

Twenty Fourth, Nay Pyi Taw, Myanmar, May 10-11, 2014

Twenty Fifth, Nay Pyi Taw, November 12-13, 2014

Twenty Sixth, New York, 26-27 April , 2015

Twenty Seventh, Kuala Lumpur, 18-22 Nov., 2015

Twenty Eighth, (Proposed) Laos, Nientiane

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