Skip to content

Economic Planning in India

📊 High-Yield Data & Statistical Fact Sheet
Visvesvaraya Plan (1934) - Emphasized industrialization to double national income within 10 years.
Bombay Plan (1944) - Authored by 8 leading industrialists; advocated massive public sector investment in heavy infrastructure.
Gandhian Plan (1944) - Authored by Shriman Narayan Agarwal; prioritized rural decentralization and cottage industry growth.
People's Plan (1945) - Authored by M.N. Roy (Marxist leanings); prioritized socialization of agriculture and basic food security.
Sarvodaya Plan (1950) - Authored by Jaiprakash Narayan; focused on grassroots self-reliance, land reforms, and village cooperatives.
Harrod-Domar Model (1st FYP) - Focused on expanding net capital savings and investment to stimulate domestic growth.
Nehru-Mahalanobis Model (2nd FYP) - Advocated industrialization driven by heavy machinery and capital goods sectors.
Rao-Manmohan Strategy (8th FYP) - Introduced the Liberalisation, Privatisation, and Globalisation (LPG) framework in 1991.
NITI Aayog Framework - Incepted on January 1, 2015 (replacing Planning Commission). Twin hubs: Team India Hub (states interface) and Knowledge & Innovation Hub (think tank).
1. STRUTTING THE TYPES & HISTORICAL MODELLING
Imperative Planning - Centralized top-down command model (state determines output and prices).
Indicative Planning - Flexible market-led approach adopted in India during the 8th FYP (1992).
Perspective Plan - Strategic long-term blueprint spanning 15 to 20 years.
Rolling Plan - Annually updated 3-to-5-year plan introduced by Janata Govt (1978–1980).
1st Generation Reforms (1991) - De-licensing, tariff cuts, disinvestment, LPG.
2nd Generation Reforms - Factor market reforms (land, labor codes, agricultural markets).
Washington Consensus - Ten policy prescriptions for developing market economies.
2. THE 12 FIVE-YEAR PLANS MATRIX (1951–2017)
1st Five-Year Plan (1951-56) - Harrod-Domar model (Agriculture & Community Development).
2nd Five-Year Plan (1956-61) - Nehru-Mahalanobis model (Heavy steel plants: Bhilai, Durgapur, Rourkela).
3rd Five-Year Plan (1961-66) - "Take-off" goal (disrupted by 1962 & 1965 wars and severe droughts).
Plan Holidays (1966-69) - Three Annual Plans (launched Green Revolution).
4th Five-Year Plan (1969-74) - Gadgil formula (Nationalized 14 commercial banks in 1969).
5th Five-Year Plan (1974-79) - D.D. Dhar model (Garibi Hatao & 20-Point Programme).
8th Five-Year Plan (1992-97) - Rao-Manmohan LPG model.
11th Five-Year Plan (2007-12) - Faster and More Inclusive Growth.
12th Five-Year Plan (2012-17) - Faster, More Inclusive, and Sustainable Growth.