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  Author Name : K Ramesh Babu Posted on : August-16-2009 Total Hits: 3108
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It is imperative to look into the growth history of the ten five year plans of India, not with microscope but with stethoscope, instead.

Indian planning process had met several changes in methodology, objective, why even target and period in the past, corresponding with regime changes.

The first premier of the country dreamed off an idealistic- socialistic pattern of economic system coping with then USSR model. The post WW- II soviet fatherland witnessed an aboriginal growth that saved a chunk population of civilization from the clutches of war and destruction.

The victory achieved by the ‘communist’ society as it was acclaimed by many scholars, driven from the industrialisation or convergence of agrarian economy into economy of modernized-industrialised nation transferred their destiny in the midst of other mighty powers of the day.

Nehru emphasized for a faster industrilisation to achieve a strong country that has to be too transferred from a lagging agrarian system to a modern power in the South Asian region.

At the instance of independence, India had few options other than to toe in the line of Nehru, not just because of his courteous nature, rather many other reasons prevalent at that time. For example, ‘the great depression’ was still in the fresh memory across the world. The neo-classical discourse of J.M. Keynes recovered the world economy, which was based almost on a state centered growth model. Nations believed in that theory and envisaged a state controlled model that is safer than other new inventions. That suited India too, without doubt.

However, the very first plan was conceived to give priority for agriculture which commanded the heights of economy, then. Till to date agri-sector holds about 30 odd percentage of share of the economy. Hence, the reason for the priority of the first plan needs not to be elaborate further.

Nehru’s dream for industrilisation followed in the second five-year plan with a stamp of P C Mahalanobis, a statistician who proscribed for capital industry’s domination infused in to the economy.

However, against expectations first five-year plan was still to date a lone success in its history. The fate of subsequent plans could not sustain against internal and external pressures in the form of war and droughts.
Until, in the mid-eighties while the ‘economic liberalisation’ process was set in motion by the Nehru’s grandson Rajiv, Indian planning had considerable influence across the Indian society.
The post liberal-global integration, carried from early 1990 has marked a paradigm shift in the planning process, where private sector, foreign investments and overseas-immigrant receipts flooding in to the economy.

Now, the new economy is just looking around for new investments from newer sources rather than standing on internal mobilization to order the growth through planning.
The dilemma before the government is to get rid of planning, for a comparatively longer period like five years, instead transforming that into more appropriate instrument for sustainable development. Nevertheless, the tradition and believing in planning cease them to do so.

The real need for planning lies at grass root level, i.e. at villages or rural habitations, where still poverty and other social imbalances prevalent at large scale.
Plan Statistics

(Rs. Crores)
Sl.No Five Year Plan Period Outlays
. Centre States UTs Total
1. First Five Year Plan 1951-56 1241.00 828.00 - 2069.00 *
2. Second Five Year Plan 1956-57 2559.12 2240.88 - 4800.00
3. Third Five Year Plan 1961-66 3600.00 3725.00 175.00 7500.00
4. Fourth Five Year Plan 1969-74 8870.00 6606.47 425.00 15901.47
5. Fifth Five Year Plan 1974-79 19954.10 18265.08 634.06 38853.24 @
6. Sixth Five Year Plan 1980-85 47250.00 48600.00 1650.00 97500.00
7. Seventh Five Year Plan 1985-90 95534.00 80698.00 3768.00 180000.00
8. Eighth Five Year Plan 1992-97 247865.00 179985.00 6250.00 434100.00
* 1952 Original plan provision
@ Excludes Rs. 450 crores for Hill and Tribal Areas Outlays are at prices at base year of plan

However, the plan outlay increased corresponding to the price rise, the real benefit spreading to the deep down not taken off.

Still, a one third of the population suffers under poverty, hence shows a dismal picture on the planning process.

Despite that a remarkable growth in the post-liberalisation economy, added more pressure on the planning strategy, which does not fit for benefitted section from the Manmohanomics.
Importance over balancing these digital divide is getting momentum and voice for further liberalisation, globalisation emerges seriously both for and against them.
UPA government still unable to do any concrete acts over the wasteful subsidies, corrupt PDS system, diverted loans, gorgeous black economy, failing development schemes etc.
Without a focused approach over these pending issues no government succeed in their tenure. UPA is not exclusion. Earlier NDA not gained from the India Shines campaign in their climax election after nearly five years regime.

It shows that the digital divide hurts every body’s fortune seriously. Since that, making more focus on pending issues will give the planning process a success.
Everybody agrees over that rural India is neglected heavily, even since after the liberalization process started. Still, government plans are not executed properly by man states across the country.
One of the reason behind this is they does not see a fitting plans according to their state socio-economic conditions.

Hence, state specific plans be made and granted to suit their needs. States in turn prepare a micro level planning process and execute with centre’s approval.

If Micro Credit could success means why not Micro level planning?

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