Need and importance of economic planning have been advocated even before the Independence. Nationalist leaders advocated the economic planning and there were manyattempts to broaden framework and guidelines for the five year plans in India. M.Visvesvaraya published a book "Planned Economy for India" in 1934 which perhaps for the first time started serious discussion on the need for planned approach for the sppedy development.
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In 1938 the Indian National Congress set up the National Planning Commission with Pandit Jawaharlal Nehru as the Chairman. Eight Bombay Industrialists presented "A Plan for Economic Development in India" (Known as Bombay Plan) at the end of 1943. M.N.Roy prepared 10 year plan known as People's Plan and S.N.Agarwal drafted Gandhiyan Plan during the early 1940s. Government of India constituted the Department of Planning and Development in August 1944.Planing After Independence
In 1950 the Prime Minister Jawaharlal Nehru set up Planning Commission and first Five Year plan was started in 1951. India has successfully completed Eleveth Five Year Plan and entered into the Twelth Five Year Plan.
Objectives of Planning
The Planning Commission set out the fourlong term objectives of planning , They are
- To increase production to the maximum posible extent so as to achieve higher level of national and Per Capita Income.
- To achieve full employment.
- To reduce inequalities of income and welth.
- To set up a socialist society based on equality and justice and absence of exploitation
Plan wise Objectives
First Five Year Plan
(1951 - 1956)
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First Five Year Plan was launched on 8th December 1951. This plan was based on Harror-Domar Model. The First Five Year Plan emphasised rehabilitation of refugees, rapid agriculture development, achievement of food sufficiency and control of inflation.This plan gave priority to agriculture development. So it was called "Agriculture and Irrigation Plan". Community Development Program (CDP) and Family Planning Programs (FPP) were launched in 1952. National Extention Services was launched in 1953 during this plan period. The main projects started during this period is as follows
- Mettur Dam
- Bhakranangal Dam
- Hirakud Dam
- Damodar Valley Project
Targeted Growth Rate was 2.1% and the Realization growth rate was 3.5%.
Second Five Year Plan
(1956 - 1961)
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Second Five Year Plan is also known as Mahalanobis Plan named after the well known economist. The main objectives of the second Five Year Plan were rapid industrialization with particular emphasis on the development of basic and heavy industries, large expansion of employment opportunities and reduction of inequalities in income and wealth. This plan gave priority to industrial development. So the plan is called "Industrial and Transport Plan". Three important steel plants of India were build during this plan period. They are
- Durgapur ,West Bengal with the Help of Briton
- Bhilai, Chattisgrah with the help of Russia
- Rourkela, Odisha with the help of Germany
During the term of Second Five Year Plan Atomic Energy Commission, Locomotive Factory at Chittaranjan and Coach factory at Perambore Projects were started.
Targeted Growth Rate was 4.5% and the Realization growth Rate was 4.27%.
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