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Economic Planning in India

📊 High-Yield Data & Statistical Fact Sheet
Cue WordsNotes
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).
  • **Current Vice Chairman (2026)**: Ashok Lahiri (took office 8 May 2026, succeeding Suman Bery); former Chief Economic Adviser and IMF economist.
  • **Viksit Bharat @2047**: NITI's Frontier Tech Hub released a **"DPI@2047"** strategic roadmap (April 2026) proposing Digital Public Infrastructure as the lever for non-linear, inclusive socio-economic growth toward the 2047 developed-nation goal.
1. STRUTTING THE TYPES & HISTORICAL MODELLING
Cue WordsNotes
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)
Cue WordsNotes
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.
Pre-Independence Planning Evolution (1934–1950)
  • **Visvesvaraya Plan (1934)**: Book *Planned Economy for India*; aimed to double national income in 10 years by shifting labor from agriculture to industry.
  • **FICCI Proposal (1934)**: Vouched for ending *laissez-faire* and setting up a National Planning Commission.
  • **National Planning Committee (1938)**: Subhas Chandra Bose initiative; chaired by **J.L. Nehru** (published 1949).
  • **Planning Advisory Board (1946)**: Formed by interim government to review projects.
  • **Economic Programme Committee (1947)**: Formed by AICC (Nehru); recommended establishing the Planning Commission.
Fixed, Core & Decentralised Planning
  • **Fixed Plan**: Rigid physical targets and financial outlays set for a fixed duration (4–7 years).
  • **Decentralised Plan**: Bottom-up formulation by grassroot authorities; price mechanisms determined via market forces.
  • **Core Plan**: Planning authority requests States for projected revenue estimates first to prevent diversion of funds from priority sectors.
PURA, Census Towns & Rurban Mission (SPMRM)
  • **PURA (A.P.J. Abdul Kalam)**: 4 connectivities — *Physical*, *Electronic*, *Knowledge*, and *Economic*.
  • **Census Town Criteria**: (1) Population **≥ 5,000**, (2) Density **≥ 400 persons/km²**, (3) **≥ 75%** of male main workforce in non-agricultural activities.
  • **Shyama Prasad Mukherji Rurban Mission (SPMRM, 2016)**: Replaced PURA to develop 300 "Rurban" village clusters preserving rural essence while providing urban amenities.
NITI Aayog Document Architecture
  • Operates through a 3-tier planning framework:
    1. 15-Year Vision Document: Long-term socio-economic perspective blueprint.
    2. 7-Year Strategy Document: Medium-term operational roadmap.
    3. 3-Year Action Agenda: Short-term tactical allocation document.
Planning Commission vs NITI Aayog
  • **Planning Commission**: Top-down approach; had power to allocate central funds to States/Ministries; limited state representation; follow-up of rigid Five-Year Plans.
  • **NITI Aayog**: Bottom-up approach (*Cooperative Federalism*); pure **Think Tank** with **zero fund allocation powers** (handled by Ministry of Finance); Governing Council includes all State Chief Ministers & UT Lt. Governors.
3. FIVE-YEAR PLAN TARGETS VS ACTUAL GROWTH & FINANCIAL RESOURCES
Cue WordsNotes
Target vs Actual GDP Growth Rate by Plan
  • **1st (1951-56)**: Target 2.1% → Actual **3.6%** (5 IITs established).
  • **2nd (1956-61)**: Target 4.5% → Actual 4.27% (Bhilai, Durgapur, Rourkela steel plants).
  • **3rd (1961-65)**: Target 5.6% → Actual **2.4%** (wars + drought).
  • **4th (1969-74)**: Target 5.6% → Actual 3.3% (Gadgil strategy; 14 banks nationalised 1969).
  • **5th (1974-79)**: Target 5.2% → Actual 5.5% (Garibi Hatao, Green Revolution gains).
  • **6th (1980-85)**: ~5.5% growth achieved ('target group' approach).
  • **7th (1985-90)**: Target 5% → Actual 6% (JRY launched 1989).
  • **8th (1992-97)**: Target 5.6% → Actual 6.7% (LPG reforms).
  • **9th (1997-2002)**: Target 7.1% → Actual 6.8% (Basic Minimum Services focus).
  • **10th (2002-07)**: Target 8.1% → Actual 7.7%.
  • **11th (2007-12)**: Target 9% → Actual 7.5% (FRBM Act concerns).
  • **12th (2012-17)**: Target 8% → Actual 6.7% ("Faster, More Inclusive & Sustainable Growth").
Financial Resources for Economic Plans (3 Sources)
  • **Domestic Budgetary Sources** (largest share): Taxation, public borrowing, small savings, public enterprise surplus.
  • **Deficit Financing**: Withdrawing RBI cash balances, RBI borrowing (Ad-hoc T-Bills), public borrowing — 2nd largest source.
  • **Foreign Assistance**: World Bank (IBRD non-concessional + IDA concessional) loans for infra/poverty alleviation/rural development; India has also become a donor nation to neighbours.
National Development Council (NDC)
  • Approved Planning Commission's Five-Year Plans; chaired by the Prime Minister — the apex body linking central planning to state execution in the pre-NITI era.
Strategy for New India @75 (Dec 2018) — 4 Pillars, 41 Chapters
  • **Drivers**: Doubling farmers' income, GDP growth ~8% to reach $4T by 2022-23, raise tax-GDP ratio to 22%, exports to $800bn.
  • **Infrastructure**: Rail Development Authority (RDA), BharatNet completion for all 2.5 lakh Gram Panchayats.
  • **Inclusion**: Ayushman Bharat (1,50,000 health & wellness centres), 10,000 Atal Tinkering Labs.
  • **Governance**: Arbitration Council of India; expanded Swachh Bharat Mission scope.
4. THE PLANNING COMMISSION, NDC & THE FINANCE COMMISSION INTERFACE
Cue WordsNotes
Planning Commission (PC) — Founding Facts
  • Set up in **March 1950** by **Cabinet Resolution** (extra-constitutional, non-statutory — no PC reference exists in the Constitution itself, despite planning being rooted in it via List-III Entry 20).
  • PM was **ex-officio Chairman**; Deputy Chairman coordinated Commission work (later given Cabinet rank). Seated at **Yojana Bhavan**; grew to **25 Divisions**.
  • **2002 New Functions** (from the 10th Plan onward): (1) Monitor plan implementation w.r.t. economic reforms via Steering Committees, (2) Monitor Central Ministries' performance via 'monitorable targets' — earning it the label of a **"super-cabinet"**.
National Development Council (NDC) — Founding & Function
  • Set up in **August 1952** by Cabinet Secretariat Resolution; composed of PC members, Union Cabinet, State CMs, and UT Administrators/Lt. Governors; PM chairs it.
  • **Functions**: (1) consider/accept Plan proposals, (2) review Plan working periodically, (3) consider socio-economic policy questions, (4) recommend measures for balanced regional development and equal-sacrifice resource mobilisation.
  • Revived post-mid-1990s due to: economic-reform-era need for state autonomy, 73rd/74th CAA local-planning mandate, and coalition-era compulsions — the 10th and 11th Plans were the first in decades passed with full CM support.
Planning Commission vs Finance Commission — The Rajamannar Critique
  • **P.J. Rajamannar** (Chairman, Fourth Finance Commission, 1965) recommended clearly demarcating PC/FC roles by constitutional amendment and making the PC a statutory body — never implemented.
  • **2002 Reform**: Government made one PC member also a Finance Commission member (symbolic PC-FC convergence) while announcing PC would play a "collaborator" role to the FC.
  • **FRBM Act (2003)**: Let states access market borrowings for Plan expenditure without prior central permission (conditional on enacting their own Fiscal Responsibility Acts) — boosted participatory/decentralised planning.
Poverty Estimation: Lakdawala vs Tendulkar Committees
  • **Lakdawala Committee**: Methodology used by the PC to estimate poverty line/ratio since 1997, anchored to calorie-intake norms.
  • **Tendulkar Committee** (constituted Dec 2005, reported Dec 2009): Recommended moving away from calorie-anchoring; adopted Mixed Reference Period (MRP) consumption expenditure and MRP-equivalent urban Poverty Line Basket (25.7% urban headcount ratio) as the new reference. For **2004-05**: Rural poverty **41.8%**, Urban **25.7%**, All-India **37.2%** — accepted by the PC in the 11th Plan Mid-Term Appraisal.
5. TWENTY-POINT PROGRAMME, MPLADS & MULTI-LEVEL PLANNING
Cue WordsNotes
Twenty-Point Programme (TPP) — 2nd Central Plan
  • Launched July 1975; restructured 1982 and 1986 ('TPP-86' — 119 items grouped into 20 Points: 54 evaluatory-criteria items, 65 pre-set-physical-target items, 20 monthly-monitored items). Further restructured as 'TPP-2006' in line with the National Common Minimum Programme (NCMP).
  • Its "direct attack" poverty-alleviation approach directly inspired the Sixth Plan's 'Garibi Hatao' slogan (1980-85).
MPLADS — 3rd Central Plan, Corpus Evolution
  • Launched **23 December 1993** at **₹5 lakh/MP**; raised to **₹1 crore (1994-95)** → **₹2 crore (1998-99)** → **₹5 crore (April 2011)**.
  • **2012 MOSPI guideline updates**: ₹10 lakh/year assistance for physically-challenged persons (tricycles/artificial limbs); works permitted in man-made-calamity areas; MPLADS Facilitation Centre (up to ₹5 lakh) permitted per MP; ₹22 lakh/year book-purchase allowance for schools/colleges; 'One MP – One Idea' annual innovation competition introduced.
  • Criticised for fund misappropriation/non-use (esp. backward states) and for infringing decentralised planning (PRI representatives demand direct fund transfer to local bodies instead).
  • 2026 A national-level **Brainstorming Workshop** was held in **Kochi** to revise **MPLADS Guidelines** and enhance the **eSAKSHI Portal** (used for MPLADS monitoring/implementation).
Multi-Level Planning (MLP) — 5 Strata
  • Evolved by the early 1980s: (1) **Centre** (Five-Year Plans, TPP, MPLADS), (2) **State** (State Planning Boards, CM as de-facto chair), (3) **District** (District Planning Boards, DM as de-facto chair), (4) **Block**, (5) **Local** (3 variants: Village, Hill Area, Tribal Area Planning).
  • **Failure reasons**: no genuine bottom-up plan aggregation (states/blocks lacked empathy with local plans), states' fiscal dependence on Central Plans, and Local Bodies' lack of constitutional mandate (fixed only post-73rd/74th CAA, converting District Planning Boards into **District Planning Committees**).
6. ECONOMIC REFORMS: THE 1991 IMF CONDITIONALITIES & GENERATIONS
Cue WordsNotes
1991 BoP Crisis — IMF Conditionalities (Obligatory Reform)
  • Reforms launched 23 July 1991 under an Extended Fund Facility (EFF) — unlike voluntary reforms elsewhere, India's were conditionality-driven: (1) Rupee devalued 22% (in 2 phases, ₹21→₹27/USD), (2) Peak import tariff cut from 130% to 30% (achieved by 2000-01; later voluntarily cut to 15%), (3) Excise duty (CENVAT) hiked 20% to offset customs-revenue loss, (4) All government expenditure cut 10% annually.
  • Pre-crisis indicators: fiscal deficit >8% of GDP, inflation >13% — compounded by the 1991 Gulf War's oil-price spike and collapse of Gulf remittances.
LPG Framework — Precise Definitional Roles
  • **Liberalisation**: shows the *direction* (state→market); **Privatisation**: shows the *path* (de-licensing, disinvestment, de-reservation); **Globalisation**: shows the *ultimate goal* (WTO-era cross-border integration of goods/services/capital/labour).
  • **Privatisation's 3 senses**: (i) pure de-nationalisation (100% transfer — only the UK under Thatcher genuinely did this), (ii) disinvestment (partial share sale; ownership stays with state if <50%), (iii) broadest sense — any market-expanding policy (de-licensing, subsidy cuts, FDI permission).
4 Generations of Economic Reforms
  • **1st Gen (1991-2000)**: Private-sector promotion (de-licensing, MRTP abolition), PSU reforms, external-sector reforms (FEMA replacing FERA, floating exchange rate), financial-sector & tax reforms.
  • **2nd Gen (2000-01 onward)**: Factor Market Reforms (dismantling Administered Price Mechanism — APM — on petroleum/sugar/fertiliser/drugs), strategic PSU disinvestment, legal/administrative reforms, critical-area reforms (power, agriculture, education, health); states given lead role in new reform steps.
  • **3rd Gen** (announced with the 10th Plan, 2002-07): Fully functional PRIs to carry reform benefits to the grassroots — the "inclusive growth" generation.
  • **4th Gen** (unofficial, coined ~2002 by experts): IT-enabled reforms — a two-way reinforcement between economic reforms and information technology.
7. POST-2014 FLAGSHIP PROGRAMMES: MAKE IN INDIA, MSME, PLIS & AATMA NIRBHAR BHARAT
Cue WordsNotes
Make in India (Sept 2014) — Targets & 2.0 Coverage
  • Targets: raise manufacturing growth to **12-14% p.a.**; raise manufacturing's GDP share from **15% to 25% by 2025**; create **100 million** additional manufacturing jobs by 2022.
  • **Make in India 2.0** covers **27 sectors**: DPIIT coordinates 15 manufacturing sectors, Department of Commerce coordinates 12 service sectors.
  • Key bottlenecks flagged: low labour productivity (Indian manufacturing workers ~4-5x less productive than Thailand/China per McKinsey), small unit size preventing economies of scale, and complex/pre-independence-era labour laws.
MSME Sector — Key Contribution Facts & MSMED Act 2006 Classification
  • MSMEs contribute **~30%** to GDP, **~45%** to manufacturing output, **~40%** to exports; **~6.34 crore** MSMEs (90% informal) employ **>11 crore** workers.
  • **MSMED Act 2006 classification** (post-2020 revision, common criteria for manufacturing & services): **Micro** — Investment < ₹1 cr & Turnover < ₹5 cr; **Small** — Investment < ₹10 cr & Turnover < ₹50 cr; **Medium** — Investment < ₹50 cr & Turnover < ₹250 cr. Export turnover is excluded from the turnover ceiling calculation.
  • Key schemes: **Udyam Registration** (self-declared Aadhaar-linked ID), **RAMP** (Raising & Accelerating MSME Performance), **CHAMPIONS** portal (May 2020), **ASPIRE** (rural entrepreneurship incubation centres), 59-minute in-principle loan approval scheme (₹1 lakh-₹1 crore).
Production Linked Incentive Scheme (PLIS) — Mechanics
  • Incentive of **4-6% on incremental sales** over a base year, conditional on additional investment in plant & machinery; launched first for mobiles, medical devices, pharmaceuticals, later extended to sunrise export-potential sectors.
  • **Pharma PLIS**: covers **53 APIs / 41 products** among identified Key Starting Materials (KSMs), Drug Intermediates and APIs, to cut import dependence (India is 3rd largest pharma industry by volume, 14th by value, but heavily import-dependent on Chinese bulk drugs/APIs).
Startup India (2016) & Ecosystem Facts
  • DPIIT startup definition: entity < 10 years old, turnover < ₹100 crore in any FY, working towards innovation/scalable business model.
  • 3 pillars: Simplification & Handholding, Funding Support & Incentives, Industry-Academia Partnership & Incubation. Tax holiday: 3 consecutive years out of first 10.
  • India has the 3rd largest startup ecosystem globally (70,000+ recognised startups per Economic Survey 2019-20; Maharashtra, Karnataka, Delhi are top state performers). Key schemes: Stand-Up India (SC/ST/women focus), Atal Innovation Mission, Chunauti (Tier-II startup challenge, seed fund ₹25 lakh).
Aatma Nirbhar Bharat (2020) — 5 Pillars & Reform Package
  • **5 Pillars**: (1) Economy (quantum jump), (2) Infrastructure, (3) System (technology-driven), (4) Demography (vibrant workforce), (5) Demand (supply-chain empowerment).
  • Contrasted with pre-1991 self-sufficiency: today's version opens PSU-reserved sectors (coal, space, defence) to private players, emphasises ease of doing business over License Raj, and courts FDI instead of restricting it.
  • Reforms bundle: commercial coal mining opened, MSME definition revised (turnover criterion added), global tenders barred for Govt. tenders **up to ₹200 crore**, 74% automatic-route FDI in defence manufacturing (from 49%), private sector allowed in space activities, Strategic Disinvestment Policy (PSUs retained only in notified strategic sectors).
  • RBI's parallel steps: repo rate cut **5% → 4%**, CRR cut **4% → 3%**, LCR requirement eased **100% → 80%**, LTRO worth **₹1 lakh crore**.
Land Banks, NSWS & Ease-of-Doing-Business Infrastructure
  • **National Land Bank Portal** (DPIIT): mapping **~5 lakh hectares** across industrial belts/SEZs; 21 states already have GIS-enabled land banks for integration.
  • **National Single Window System (NSWS)**: single digital platform for investors to identify/apply for Central and State approvals, addressing information asymmetry and duplicate filings.
  • Manufacturing has stagnated at **~16% of GDP** for three decades post-1991 — the core rationale cited for land-bank/NSWS/Industry 4.0 push.
FDI Liberalisation — Insurance & E-Commerce/Retail
  • **Insurance FDI**: 26% (IRDA Act 1999) → **49%** (Feb 2015, automatic route) → **75%** (2021); 100% FDI allowed in insurance intermediaries/brokers (Feb 2020).
  • **E-commerce FDI**: 100% FDI allowed only in the **marketplace model** (platform connecting buyers/sellers); FDI barred in the **inventory-based model**. Dec 2019 clarifications barred vendors owned/controlled (≥25% inventory sourced) by an e-commerce group company from selling on its own platform, and barred exclusive-selling mandates and price-influencing incentives.
8. GLOSSARY: MARKET INTERVENTION & STABILISATION CONCEPTS
Cue WordsNotes
Market Distortion & Market Failure
  • **Market Distortion**: An economic scenario caused by government intervention (price ceilings/floors, taxes, subsidies, quantity restrictions) that skews an otherwise free market — often a by-product of well-intentioned welfare policy. **Market Failure**: An inefficient allocation of goods/services where individually rational behaviour doesn't produce a rational group outcome (e.g., under-provision of public goods).
Pump Priming
  • Government spending and/or tax cuts used to stimulate a sluggish/recessionary economy — named after priming a suction pump with water so it functions.
Stimulus (Fiscal vs Monetary)
  • **Fiscal Stimulus**: Government raises spending and/or cuts tax rates to put more money in consumers' hands. **Monetary Stimulus**: Central bank expands money supply or cuts interest rates to spur consumer spending — both aim to kick-start a sluggish economy.
Trickle-down Effect
  • Theory that income gains for corporations/the wealthy (via tax cuts on business, high incomes, capital gains, dividends) eventually flow down to the poor through investment/spending, spurring demand and growth when the poor, in turn, spend their wages.
9. FUNDAMENTALS CHECK — WHY PLANNING & CONSOLIDATED FIVE-YEAR PLAN THRUSTS
Cue WordsNotes
Economic Planning — Basic Definition & Rationale
  • **Economic Planning**: A deliberate, government-directed effort to allocate a country's resources (capital, labour, land) toward pre-determined targets over a fixed period, to achieve balanced and accelerated economic growth.
  • **Why India adopted it (post-1947 context)**: Need for rapid industrialisation and capital formation after colonial de-industrialisation, low savings/investment ratio, widespread poverty and unemployment, socialist-inspired faith (Nehru era) in state-led resource mobilisation, and the example of Soviet planned growth. Planning Commission set up 1950 to give this effort institutional form via sequential Five-Year Plans.
Consolidated Five-Year Plans — Thrust/Strategy at a Glance (1st–12th)
  • **1st (1951-56)**: Harrod-Domar model — agriculture & community development.
  • **2nd (1956-61)**: Nehru-Mahalanobis model — heavy industry/capital goods (Bhilai, Durgapur, Rourkela).
  • **3rd (1961-66)**: "Take-off" attempt — derailed by wars (1962, 1965) & droughts.
  • **Plan Holidays (1966-69)**: Annual Plans — Green Revolution launched.
  • **4th (1969-74)**: Gadgil formula — bank nationalisation (1969), growth with stability.
  • **5th (1974-79)**: D.D. Dhar model — Garibi Hatao & employment, 20-Point Programme.
  • **6th (1980-85)**: Poverty alleviation via 'target group' approach; infrastructure push.
  • **7th (1985-90)**: Growth, food security, productivity — JRY launched (1989).
  • **8th (1992-97)**: Rao-Manmohan LPG model — liberalisation, human resource development.
  • **9th (1997-2002)**: Growth with social justice & equity — Basic Minimum Services.
  • **10th (2002-07)**: Faster, broad-based growth targeting 8% GDP.
  • **11th (2007-12)**: Faster and More Inclusive Growth.
  • **12th (2012-17)**: Faster, More Inclusive & Sustainable Growth — last Plan before NITI Aayog replaced the Commission (2015).
Centralised vs Decentralised/Indicative Planning — Basic Distinction
  • **Centralised (Imperative) Planning**: A single central authority sets targets, allocates resources, and directs both public and private sectors top-down (state fixes output/prices) — India's approach until early 1990s.
  • **Decentralised/Indicative Planning**: Government sets broad guiding targets/priorities but leaves actual production/investment decisions to market forces and private/state enterprises responding to price signals — adopted from the 8th Plan (1992) onward under liberalisation.
10. FIVE-YEAR PLANS 1st–12th — PLAN-BY-PLAN MODELS, OBJECTIVES & OUTCOMES (SOURCE NOTES)
Cue WordsNotes
1st Plan (1951-56)
  • Based on the Harrod-Domar Model.
  • Thrust sector: Agriculture.
  • Outcome: Successful.
2nd Plan (1956-61)
  • **Mahalanobis Plan**.
  • **Agriculture given lower priority**.
  • Focus on **heavy & basic industries**.
  • **Industrial Policy, 1956** — aimed at a **"socialistic pattern of society"**.
3rd Plan (1961-66)
  • It was felt that India had entered the **"Take-off stage"** ⇒ aim was to make India **self-reliant + a self-generating economy**.
  • **Agriculture given priority**.
  • **Failure** ⇒ **2 wars**.
  • Later, focus shifted to **defence development**.
Annual Plans (1966-69) — PLAN HOLIDAY
  • Caused by: **agricultural crisis + inflationary recession + rupee devaluation**.
  • **Green Revolution** launched during this period.
  • **Paved the way for the 4th Plan**.
4th Plan (1969-74)
  • Objectives: **"Growth with stability"** + **progressive achievement of self-reliance**.
  • **Garibi Hatao + Self-reliance**.
  • **Launched by D.P. Dhar**.
  • High growth rate + income distribution + domestic savings.
  • *(Note: this source block attaches the Garibi Hatao/D.P. Dhar strategy to the 4th Plan (1969-74); the standard attribution used elsewhere in this file places **D.D. Dhar model, Garibi Hatao & the 20-Point Programme under the 5th Plan (1974-79)**. Treat the 5th-Plan attribution as the settled one; retained here as the source records it.)*
Rolling Plan (1978-80)
  • **Emphasis on employment**.
  • Government changed after 2 years → plan changed.
6th Plan (1980-85)
  • **Increasing national income**.
  • **Decrease poverty & unemployment**.
  • Schemes: **TRYSEM** (Training Rural Youth for Self Employment), **IRDP**, **NREP**.
  • Outcome: **Success**.
7th Plan (1985-90)
  • Focus on **food, work, productivity**.
  • **Very successful** ⇒ the **Hindu Growth Rate was overcome**.
8th Plan (1992-97)
  • Context: **worsening BoP**.
  • **Liberalisation**.
  • High economic growth + **declining share of public sector in total investment to 34%**.
9th Plan (1997-02)
  • **Social Justice & Equality**.
10th (2002-07), 11th (2007-12) & 12th (2012-17) Plans
  • Source notes list these three plans by period only: 10th (2002-07), 11th (2007-12), 12th (2012-17) — thrusts/targets for these are captured in the Plan-matrix and Target-vs-Actual sections above.
11. TYPES OF PLANNING & THE BOMBAY PLAN (1944-45)
Cue WordsNotes
Systems Planning
  • Less emphasis on social and institutional dimensions.
  • Target is the best possible results for established goals, giving less importance to caste, creed, family etc.
Normative Planning
  • Gives due importance to socio-institutional factors.
  • Suitable for countries with a lesser degree of social diversity.
Imperative Planning (source gloss)
  • **Central Command planning**, like communist Russia.
Indicative Planning (source gloss)
  • Works through the market system rather than replacing it.
  • Sets quantitative targets side by side with a set of economic policies that are indicative in nature.
  • Done by Mixed Economies.
Sectoral vs Spatial Planning
  • **Sectoral**: emphasises sectors of the economy, i.e. agriculture, industry, or services.
  • **Spatial**: spatial dimensions defined by the pressures and requirements of national economic development.
Bombay Plan, 1944-45 — Fuller Detail
  • **8 capitalists of India**, after WW2, came up with a plan to improve the economy of the country.
  • Advocated the **state to play a prime role in the economy** through **planning, controlling and overseeing**.
  • **Rapid industrialisation** and emphasis on **heavy capital goods and basic industries**.
  • Stressed the significance of **social services & reforms** — **Education**, **Land Reform**, and **Cooperatives in finance, marketing and production**.
12. SCHEME ARCHITECTURE (CSS vs CENTRAL SECTOR) & NITI AAYOG DATA PLATFORM
Cue WordsNotes
Centrally Sponsored Schemes (CSS)
  • **Financed by Centre and States in a fixed ratio** (50:50, 70:30, 75:25, 90:10).
  • **Implementation by States**.
  • **Formulated on subjects of the State List**.
  • **Shivraj Singh Chouhan Panel** recommendations ⇒ **28 umbrella CSS schemes** now.
CSS Classification — Core of the Core (6)
  • For social protection and social inclusion:
    1. National Social Assistance Programme (Dept of Rural Development)
    2. MGNREGA (Dept of Rural Development)
    3. Umbrella Scheme for Development of SCs (Dept of Social Justice & Empowerment)
    4. Umbrella Programme for Development of STs (Ministry of Tribal Affairs)
    5. Umbrella Programme for Minorities
    6. Umbrella Programme for Development of Other Vulnerable Groups
CSS Classification — Core (20) & Optional (2)
  • **Core Schemes (20)**: for the **National Development Agenda**, where Centre and States have to work together in the spirit of **"Team India"**.
  • **Optional Schemes (2)**: States are free to choose whether to implement; **funds allocated as a lump sum**. Includes the **Shyama Prasad Mukherjee Rurban Mission**.
Central Sector Schemes
  • **Financed by the Centre completely**; **implementation by the Centre**.
  • Based on subjects of the **Union List**.
  • Some programmes directly implemented by the central ministry in States and UTs.
  • Examples: **BharatNet, Namami Gange, LPG connection to the poor, Crop Insurance scheme, Metro projects** etc.
National Data and Analytics Platform (NDAP) — NITI Aayog
  • By NITI Aayog ⇒ to make all government data accessible to stakeholders in a user-friendly manner.
  • Also described in source as a vision document of NITI Aayog ⇒ to standardise data across multiple government sources (listed there as "National Data and Analytical Platform").