(Online Course) Pub Ad for IAS Mains: Chapter: 5 (Plans and Priorities) – 5 Year Plans in a Nutshell (Paper -2)

Paper – 2
Chapter: 5 (Plans and Priorities)

5 Year Plans in a Nutshell

First Five Year Plan (1951-55)

Total budget: 206.8 billion (INR) or USD$23.6 billion.


  • the standard of living

  • Community and agriculture development

  • Energy and irrigation

  • Communications and transport

  • Industry

  • Land rehabilitation

  • Social services

  • Target of GDP growth 2.1 per year

  • Achieved had been 3.6% per yeas


  • GDP 3.6% per year

  • Evolution of good irrigation system

  • improvement in roads

  • civil aviation

  • railways

  • Telegraphs

  • posts

  • manufacture of fertilizers

  • electrical equipment


  • development of only a few industries

  • private industry had not developed

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Second Five Year Plan (1956-1961)


  • To increase by 25% the national income

  • To make the country more industrialized

  • To increase employment opportunities so that every citizen gets a job

Development of

  • Mining and industry

  • Community and agriculture development

  • Power and irrigation

  • Social services

  • Communications and transport

  • Miscellaneous


  • 5 steel plants

  • a hydro-electric power project

  • production of coal increased

  • more railway lines

  • Land reform measures

  • improved the living standards of the people

  • The large enterprises in seventeen industries were nationalized


  • eliminate the importation of consumer goods

  • high tariffs

  • Low quotas or banning some items altogether

  • License were required for starting new companies

  • This is when India got its License Raj, the bureaucratic control over the

  • When a business was losing money the Government would prevent them from
    shutting down

Third Five Year Plan (1961-1966)


  • More stress to agriculture

  • Subsidies

  • Sufficient help

  • Effective use of country’s resources

  • To increase the national income by 5% per year

  • To increase the production of agriculture so that the nation is
    self-sufficient in food ggrains

  • To provide employment opportunities for every citizen of the country

  • To establish equality among all the people of the country


  • Decentralization

  • Organizations formed

  • Panchayat

  • Zila Parishads

    Laid emphasis on

  • Oil conservation

  • Irrigation

  • Afforestation

  • Dry farming

  • Many fertilizer and cement plants were built

  • Green Revolution

Problems faced Sino Indian War, India witnessed increase in price of
The resulting inflation

4th Five Year Plan (1969 to 1974)


  • to reform and restructure govts expenditure agenda( defense became one major

  • to facilitated growth in exports

  • to alter the socio economic structure of the society


  • Great advancement has been made with regard to India’s national income

  • considered as one of the ex

  • served as a stepping stone for the economic growth

  • Food grains production increased


  • A gap was created between the people of the rural areas and those of the urban

  • Due to recession, famine and drought, India did not pay much heed to long term

Fifth Five Year Plan 1974 to 1979


  • To reduce social, regional, and economic disparities

  • To enhance agricultural productivity

  • To check rural and urban unemployment

  • To encourage self-employment

  • Production support policies in the cottage industry sector

  • To develop labor intensive technological improvements


  • The international economy was in a trouble

  • Food, oil, and fertilizers where prices sky-rocketed

  • Several inflationary pressures


  • Food grain production was above 118 million tons due to the improvement of
    infrastructures facilities

  • Bombay High had shot up the commercial production of oil in India

Problems faced

  • The world economy was in a troublesome state

  • This had a negative impact on the Indian economy

  • Prices in the energy and food sector skyrocketed and as a consequence
    inflation became inevitable

Sixth Five Year Plan 1980 to 1985


  • To improve productivity level

  • To initiate modernization for achieving economic and technologies

  • To control poverty and unemployment

  • To develop indigenous energy sources and efficient energy usage

  • To promote improved quality of life of the citizens

  • To introduce Minimum Needs Program for the poor

  • To initiate Family Planning


  • Speedy industries development

  • Emphasis on the information technology sector

  • Self sufficiency in food

  • Science and technology also made a significant advance

  • Several successful programs on improvement of public health government in the
    Indian health care sector

  • Government investments in the Indian health care sector

Problems faced

  • During this time the Prime Minister was Rajiv Gandhi and hence industries
    development was the emphasis of this plan some opposed it specially the
    communist groups, this slowed down the pace of progress.

Seventh Five Year Plan 1985 to 1989


  • Anti-poverty program

  • Improved facilities for education to girls

  • The government undertook to increase productivity of

  • Oilseeds, Fruits, Vegetables

  • Pulses, cereals, Fish

  • Egg, Meat, milk.

  • Communications

  • Emergence of informatics, and hooking up of telecommunications with computers

  • Transport

  • inland waterways, product pipelines, civil aviation, coastal shipping


  • Social Justice

  • Removal of oppression of the week

  • Using modern technology

  • Agricultural development

  • Anti-poverty programs

  • Full supply of food, clothing, and shelter

  • Increasing productivity of small and large scale farmers

  • Making India an Independent Economy


  • 1989-91 was a period of political instability in India five year plan was

  • In 1991, India faced a crisis in foreign exchange (Forex) reserves

Eighth Five Year Plan 1992 to 1997


  • Prioritize the specific sectors which requires immediate investment

  • To generate full scale employment

  • Promote social welfare measures like improved healthcare, sanitation,
    communication and provision for extensive education facilities at all levels

  • To check the increasing population growth by creating mass awareness programs

  • To encourage growth and diversification of agriculture

  • To strengthen the infrastructural facilities

  • To place greater emphasis on role of private initiative in the development of
    the industrial sector


  • Rise in the employment level Poverty reduction Self-reliance on domestic

  • Self-sufficiency in agricultural production

  • GDP Growth Per Annum 5.6

Ninth Five Year Plan 1997 to 2002


  • to prioritize rural development

  • to generate adequate employment opportunities

  • to stabilize the prices

  • to ensure food and nutritional security

  • to provide for the basic infrastructural facilities like education for all,
    safe drinking water, primary health care, transport, energy

  • to check the growing population increase

  • to encourage social issues like women empowerment

  • to create a liberal market for increase in private investments


  • A combined effort of public, private, and all levels of government

  • ensured the growth of India’s economy.

  • Service sector showed fast growth rate

Tenth Five Year Plan (2002-2007)


  • To transform the country into the fastest growing economy of the world

  • targets an annual economic growth of 10%

  • Human and social development

  • The social net

  • Industry and services:

  • Industry, Minerals, Energy, Information technology, Tourism, Real estate,
    Construction, Internal trade

  • Forests and environment

  • Science and technology

  • Special area programs

  • Schooling to be Compulsory for Children.

Eleventh five year plan (2007-2012)


  • Income & Poverty

  • Education

  • Health

  • Women and Children

  • Infrastructure

  • Environment

  • Also Refer online for future Reading.


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