What is five year plan in india?
Five Year Plans were a centralized economic planning system used by the Indian government from 1951 to 2017. Here's what you should know:
Basic concept: - Five-year cycles of economic development targets - Created by Planning Commission (now replaced by NITI Aayog) - Focused on specific sectors like agriculture, industry, education, health
Key periods: 1. First Plan (1951-56): Focus on agriculture, price stability 2. Second Plan (1956-61): Industrialization emphasis 3. Later plans: Varied focus on poverty removal, employment, infrastructure
Achievements: - Established heavy industries and infrastructure - Green Revolution success in agriculture - Developed science and technology capabilities
The system was replaced in 2017 by NITI Aayog (National Institution for Transforming India) which follows a more flexible approach rather than rigid five-year cycles. The plans played a crucial role in shaping India's development trajectory in the early decades after independence.
From my studies of Indian economic history, the Five Year Plans were essentially India's roadmap for development after independence.
The planning process involved: - Assessing available resources - Setting priorities for national development - Allocating funds to different sectors - Monitoring progress toward targets
Notable plans: - Fifth Plan (1974-78): Focus on poverty removal and self-reliance - Eighth Plan (1992-97): First plan after economic liberalization - Twelfth Plan (2012-17): Final five year plan
Why they were important: - Provided direction to both public and private sectors - Ensured balanced regional development - Addressed social issues like education and healthcare
While the system had criticisms (bureaucratic, slow to adapt), it helped coordinate national development efforts across a vast and diverse country. The transition to NITI Aayog represents an evolution in how India approaches economic planning in a more globalized and dynamic world.
The Five Year Plan system was actually inspired by Soviet planning models but adapted to India's democratic framework and mixed economy approach.