Five-Year Plans and Economic Development in Rajasthan | RPSC Preparation: All subjects - RPSC RAS (Rajasthan) PDF Download

Introduction

Rajasthan has been working towards economic growth and development through structured planning and policies. The Five-Year Plans, earlier managed by the Planning Commission, played a key role in shaping the state’s progress. After 2014, the Planning Commission was replaced by NITI Aayog, which introduced new approaches to development. Rajasthan’s collaboration with NITI Aayog and its ambitious Economic Vision 2030 aim to make the state a major economic hub. For the RPSC RAS Exam 2025, understanding these plans and initiatives is essential, as they are frequently tested in both Prelims and Mains. The following notes explain each topic in simple language, covering objectives, features, and impacts.

1. Twelfth Five-Year Plan (2012-2017)

Objectives:
The Twelfth Five-Year Plan (2012-2017) aimed to achieve faster, sustainable, and more inclusive growth in Rajasthan. It focused on improving infrastructure, social services, and rural development to ensure balanced progress across the state.

Key Features:

• Budget Allocation: The plan allocated funds to key sectors:

  • Power (36.92%): The largest share was invested in improving electricity generation, transmission, and distribution to meet the state’s energy needs.

  • Social & Community Services (35.28%): Funds were used for education, healthcare, and social welfare programs to improve living standards.

  • Agriculture & Rural Development (14.57%): Investments supported irrigation, farming, and rural infrastructure to boost agricultural productivity and rural livelihoods.

• Theme: “Faster, Sustainable, and More Inclusive Growth.” This meant achieving quick economic growth while protecting the environment and ensuring benefits reached all sections of society, including the poor and marginalized.

• Key Initiatives:

  • Expanded irrigation projects like the Narmada Canal Project to support agriculture in dry regions.

  • Strengthened healthcare through schemes like the Mukhyamantri Nishulk Dava Yojana (free medicine scheme).

  • Improved education by upgrading schools and introducing scholarships.

  • Promoted rural employment through MGNREGA and state-specific enhancements.

Impact:

• Increased power supply in rural and urban areas, reducing electricity shortages.

• Improved access to education and healthcare, especially for marginalized communities.

• Enhanced agricultural productivity through better irrigation and farmer support programs.

• Reduced poverty in rural areas by creating jobs and improving infrastructure.

• Laid the foundation for sustainable development by balancing economic growth with social welfare.

2. Shift from Planning Commission to NITI Aayog

Objectives:
The Planning Commission, which designed Five-Year Plans, was replaced by NITI Aayog (National Institution for Transforming India) in 2015 to promote cooperative federalism and flexible development planning. The shift aimed to give states like Rajasthan more freedom to design their own growth strategies while aligning with national goals.

Key Features:

• Planning Commission (1950-2014):

  • Created centralized Five-Year Plans with fixed targets and funding for states.

  • Focused on top-down planning, where the central government decided priorities.

  • Rajasthan’s development was guided by plans like the Twelfth Five-Year Plan, with funds allocated by the central government.

• NITI Aayog (2015 onwards):

  • Replaced Five-Year Plans with Three-Year Action Plans, Seven-Year Strategies, and Fifteen-Year Vision Documents to allow more flexibility.

  • Promotes cooperative federalism, meaning states work with the central government to set their own goals.

  • Encourages competitive federalism, where states compete to perform better in development.

  • Provides a platform for states to share best practices and innovate.

  • Focuses on Sustainable Development Goals (SDGs), innovation, and data-driven planning.

• Impact on Rajasthan:

  • Rajasthan gained more freedom to plan projects based on its unique needs, such as water conservation and renewable energy.

  • NITI Aayog’s support helped Rajasthan align its policies with national goals like clean energy and digital governance.

  • The state adopted three-year action plans (e.g., 2017-2020) to focus on short-term, achievable targets.

Impact:

• Shifted Rajasthan’s planning from rigid targets to flexible, state-specific strategies.

• Encouraged innovation in schemes like iStart Rajasthan and Mukhyamantri Jal Swavlamban Abhiyan.

• Improved coordination between Rajasthan and the central government for funding and policy support.

• Strengthened Rajasthan’s focus on SDGs, such as poverty reduction, clean water, and quality education.

3. NITI Aayog Initiatives in Rajasthan

Objectives:
Rajasthan collaborates with NITI Aayog to achieve Sustainable Development Goals (SDGs) and promote research-based policymaking. These initiatives aim to address Rajasthan’s challenges like water scarcity, unemployment, and education while supporting economic growth.

Key Features:

• Collaboration for Sustainable Development Goals (SDGs):

  • Rajasthan works with NITI Aayog to achieve 17 SDGs, including no poverty, zero hunger, clean water, and quality education.

  • The state has set up an SDG Cell to monitor progress and implement projects aligned with these goals.

  • Key focus areas include water conservation (e.g., Mukhyamantri Jal Swavlamban Abhiyan), renewable energy (e.g., Solar Energy Policy), and healthcare (e.g., Heal in Rajasthan Policy 2025).

• NITI Aayog Chair at the University of Rajasthan:

  • Established at the University of Rajasthan to promote research on economic and social policies.

  • Conducts studies on Rajasthan’s development challenges, such as desertification, unemployment, and rural development.

  • Provides recommendations to the state government for better policymaking.

  • Organizes workshops and seminars to involve students, researchers, and policymakers.

• Support for Innovation and Monitoring:

  • NITI Aayog supports Rajasthan’s digital initiatives like e-Mitra and Rajasthan Sampark Portal to improve governance.

  • Uses data-driven tools like the SDG India Index to track Rajasthan’s progress compared to other states.

Impact:

• Improved Rajasthan’s ranking in the SDG India Index by focusing on health, education, and water management.

• Strengthened research and policy development through the NITI Aayog Chair, leading to better-informed government decisions.

• Enhanced implementation of schemes like Jal Jeevan Mission and iStart Rajasthan with NITI Aayog’s guidance.

• Promoted sustainable development by addressing Rajasthan’s unique challenges, such as water scarcity and rural poverty.

4. Economic Vision 2030

Objectives:
Rajasthan’s Economic Vision 2030 aims to transform the state into a $350 billion economy by 2030. It focuses on key sectors like energy, health, education, and infrastructure to drive economic growth and improve living standards.

Key Features:

• Economic Target: Achieve a $350 billion economy by 2030, making Rajasthan one of India’s leading states in economic growth.

• Focus on Key Sectors:

  • Energy: Expand renewable energy through policies like the Rajasthan Solar Energy Policy and City Gas Distribution (CGD) Policy 2025.

  • Health: Improve healthcare access through schemes like Heal in Rajasthan Policy 2025 and Mukhyamantri Ayushman Arogya Yojana.

  • Education: Modernize education with initiatives like Smart Education Classes and iStart School Program.

  • Infrastructure: Develop roads, water supply, and smart cities under projects like Jal Jeevan Mission and Smart Cities Mission.

• Support for Industries: Promote industries like textiles, gems/jewelry, and tourism through policies like Rajasthan Investment Promotion Scheme (RIPS) and Rajasthan Export Promotion Policy.

• Sustainability and Innovation: Emphasize green energy, digital governance, and startup growth to ensure sustainable development.

• Investment Summits: Events like the Rising Rajasthan Global Investment Summit 2024 attract investors to support the $350 billion goal.

Impact:

• Increased investments in Rajasthan, with ₹5.21 lakh crore in MoUs signed during the Rising Rajasthan Summit 2024.

• Created thousands of jobs through industrial growth and startup initiatives like iStart Rajasthan.

• Improved infrastructure, such as roads and water supply, enhancing living standards.

• Strengthened Rajasthan’s position as a leader in renewable energy, contributing to sustainable growth.

• Positioned Rajasthan as a key player in India’s economic landscape, with a focus on inclusive and eco-friendly development.