RRB Group D Static GK Economic Planning & Five Year Plans In India

Economic Planning (आर्थिक नियोजन) is a structured process an economy uses to achieve specific goals, primarily Social and Economic Development. This systematic approach involves creating a strategic plan to help national resources and efforts. 

India's post-independence growth strategy significantly relied on such planning, aiming for comprehensive societal and economic upliftment through a series of focused initiatives and programs.

RRB Group D Static GK Economic Planning & Five Year Plans In India

Here are the RRB Group D Static GK Economic Planning and Five Year Plans In India By Akshay Sir:

Historical Context of Economic Planning

Here are the details about the global origin and historical development of Economic Planning: 

Global Origin of Economic Planning

Economic Planning first appeared globally in 1928 in the USSR (Union of Soviet Socialist Republics), now Russia. It was introduced by Joseph Stalin, who also implemented Five Year Plans. The first Five Year Plan in the USSR ran from 1928-1933.

Historical Development of Economic Planning in India

India's planning history is extensive:

1. 1931 - Karachi Session: The term Economic Planning was first used by the Indian National Congress at its Karachi Session, presided over by Sardar Patel.

2. 1934 - M. Visvesvaraya: Authored "Planned Economy for India," proposing a 10-year plan.

3. 1938 - Haripura Session: Under Subhas Chandra Bose's presidency, a National Planning Committee was formed with Jawaharlal Nehru as chairman.

4. 1944 - Bombay Plan: Proposed by eight private capitalists.

5. 1944 - Gandhian Plan: Presented by Shriman Narayan based on Gandhian philosophy.

6. 1945 - People's Plan: Introduced by M.N. Roy.

7. 1950 - Sarvodaya Plan: Introduced by Jayaprakash Narayan.

This led to formal institutions:

• March 15, 1950: The Planning Commission (योजना आयोग) was constituted.

• August 6, 1952: The National Development Council (NDC) (राष्ट्रीय विकास परिषद) was formed.

• India's First Five Year Plan was implemented from 1951-1956.

• The Twelfth Five Year Plan (2012-2017) was India's last.
  The concept of large-scale planned development, though distinct from Five-Year Plans, also drew inspiration from projects like the Tennessee Valley Authority (TVA) in the USA (1916).

Evolution of Economic Planning Format in India

India's planning structure has undergone significant changes:

• 1951 - 2017: The primary framework was Five Year Plans.

• 2017 - Present: India transitioned to NITI Aayog's Vision Plan.

NITI Aayog (National Institution for Transforming India) now uses a multi-duration planning framework:

• 3-year plan: The Action Plan.

• 7-year plan: The Strategy Plan.

• 15-year plan: The Vision Plan.

Five Year Plans: Structure and Key Details

Understanding the Five Year Plans involves four core aspects: Time Period, Model, Time Breaks/Gaps, and Priority/Objective.

Time Periods and Breaks in Five Year Plans

India implemented 12 Five Year Plans with three significant breaks:

1. First Five Year Plan: 1951-1956

2. Second Five Year Plan: 1956-1961

3. Third Five Year Plan: 1961-1966

• First Plan Holiday (1966-1969): A 3-year gap due to:

• 1962: India-China War

• 1965: India-Pakistan War

• 1966: Severe Drought

• (Memory Tip: The third plan faced bad luck, like the saying 'three spoils the task' (तीन बिगाड़ा काम बिगाड़ा).)

4. Fourth Five Year Plan: 1969-1974

5. Fifth Five Year Plan: 1974-1979 (Terminated in 1978)

• Second Plan Holiday (1978-1980): Following the Fifth Plan's early termination.

• The Morarji Desai government (Janata Dal) came to power in 1978 and introduced the Rolling Plan (अनवरत योजना).

• The Rolling Plan allowed flexible planning and target adjustments, conceived by Gunnar Myrdal.

• It was discontinued in 1980 when the Congress government resumed Five Year Plans.

6. Sixth Five Year Plan: 1980-1985

7. Seventh Five Year Plan: 1985-1990

• Third Plan Holiday (1990-1992): A 2-year gap due to:

• Political Instability

• Balance of Payments (BoP) Crisis

• Initiation of LPG Reforms (Liberalization, Privatization, Globalization)

8. Eighth Five Year Plan: 1992-1997

9. Ninth Five Year Plan: 1997-2002

10. Tenth Five Year Plan: 2002-2007

11. Eleventh Five Year Plan: 2007-2012

12. Twelfth Five Year Plan: 2012-2017

Models of Five Year Plans

Various plans were based on specific economic models:

• First Five Year Plan: Harrod-Domar Model

• Second Five Year Plan: P.C. Mahalanobis Model

• Third Five Year Plan: John Sandy and Sukhamoy Chakravarty

• Fourth Five Year Plan: D.R. Gadgil, L.S. Mane, and Ashok Rudra

• Fifth Five Year Plan: D.P. Dhar

• Eighth Five Year Plan: Rao and Manmohan (referring to P.V. Narasimha Rao and Manmohan Singh)

Slogans of Five Year Plans

Key slogans highlighting plan objectives:

• Fifth Five Year Plan: Garibi Hatao (Eradicate Poverty), given by Indira Gandhi.

• Seventh Five Year Plan: Food, Agriculture, and Productivity (खाद कृषि और उत्पादकता).

Detailed Overview of Individual Five Year Plans

First Five Year Plan (1951-1956)

• Primary Focus: Agriculture (कृषि), as India was an agrarian economy.

• Key Areas: Electricity, Irrigation, Multi-Purpose Projects, Community Development Program, and establishment of IITs.

• Objective: To achieve Agricultural Self-Sufficiency. Its target growth rate was 3.1%.

• Major Projects: Bhakra Nangal Dam, Hirakud Dam, and Damodar Project.

• Community Development Program: Launched in 1952.

Second Five Year Plan (1956-1961)

• Primary Focus: Industries (उद्योगों पर), particularly Heavy Industries.

• Key Achievement: Establishment of three major Steel Plants with international collaboration:

1. Bhilai Steel Plant: In Chhattisgarh, assisted by Russia (Memory Tip: Bhilai (भिलाई) sounds like 'bhalai' (भलाई, welfare), associated with socialism and Russia).

2. Durgapur Steel Plant: In West Bengal, assisted by Britain (Memory Tip: Durga Puja is prominent in West Bengal, and Queen Elizabeth of Britain was like a 'Durga' figure for them).

3. Rourkela Steel Plant: In Odisha, assisted by Germany (Memory Tip: Eating bananas (केले) in the morning makes you strong like 'money' (मनी - German currency mark, or just strong)).

Third Five Year Plan (1961-1966)

• Key Achievement: Established the Bokaro Steel Plant in Jharkhand with assistance from the Soviet Union.

• Objective: Aimed for Self-Reliance (आत्मनिर्भरता) emphasizing both Industry and Agriculture.

• Outcome: This plan was a major failure due to the 1962 India-China War, 1965 India-Pakistan War, and the 1966 Drought.

• Significant Contribution: Despite its failure, it laid the groundwork for the Green Revolution (हरित क्रांति), which began around 1965-1967. The term "Green Revolution" was coined by William Gaud. Norman Borlaug is the Global Father, and M.S. Swaminathan is the Indian Father of the Green Revolution. It led to food grain self-sufficiency, particularly in Punjab, Haryana, and Western Uttar Pradesh.

Fourth Five Year Plan (1969-1974)

• Key Initiatives:

• Family Planning was introduced (Memory Tip: The slogan 'Hum Do, Hamare Do' (हम दो हमारे दो - We two, ours two) encapsulates the concept of family planning).

• Conducted a Nuclear Test (Pokhran I) titled "Smiling Buddha" in 1974.

• Nationalization of 14 major banks.

• Introduction of the Employment Guarantee Scheme (EGS).

• Monopolies and Restrictive Trade Practices (MRTP) Act of 1969.

• Objective: Self-reliance with stable growth (आत्मनिर्भरता के साथ स्थायी विकास).

Fifth Five Year Plan (1974-1979)

• Key Slogans & Programs:

• The prominent slogan "Garibi Hatao" (Poverty Eradication) was introduced in 1971.

• Minimum Needs Program (MNP), launched in 1974.

• Twenty Point Program.

• Food for Work Program ("Kam ke Badle Anaj"), a slogan given by Indira Gandhi.

• Objective: Poverty Eradication (गरीबी उन्मूलन).

• Plan Termination: Terminated one year early in 1978 by the Morarji Desai-led Janata Party government.

Sixth Five Year Plan (1980-1985)

• Key Initiatives:

• Nationalization of 6 additional banks.

• Establishment of NABARD (National Bank for Agriculture and Rural Development) on July 12, 1982.

• Launch of the Integrated Rural Development Program (IRDP) in 1980.

• Regional Rural Banks (RRBs) were established in 1975, with the first RRB in Moradabad, Uttar Pradesh.

• Model: Based on the Input-Output Model.

Seventh Five Year Plan (1985-1990)

• Objectives: Modernization (आधुनिकीकरण), Social Justice, Self-reliance, and adoption of the LPG (Liberalization, Privatization, Globalization) policy.

• Slogan: "Food, Work, and Productivity".

• Key Initiatives:

• Introduction of the Industrial Policy of 1986. The concept of "Sunrise Industry" also emerged in 1986. India's First Industrial Policy was in 1948, based on the Pranab Mukherjee Model.

• Launch of the Jawahar Rozgar Yojana.

• Operation Blackboard and National Literacy Mission.

• Establishment of SEBI (Securities and Exchange Board of India) in 1988.

Eighth Five Year Plan (1992-1997)

• Context: Implemented during Prime Minister P.V. Narasimha Rao's tenure, following the economic reforms of 1991.

• Key Focus Areas: Primary Education (literacy for 15-35 age group) and social welfare initiatives like maternity benefit of ₹300 and old age pension of ₹200.

• Key Initiatives:

• Establishment of the National Women's Fund (Rashtriya Mahila Kosh) in 1993.

• Introduction of the Prime Minister's Employment Scheme (Pradhan Mantri Rozgar Yojana).

Ninth Five Year Plan (1997-2002)

• Objective: Growth with Social Justice and Equity (सामाजिक न्याय और समता के साथ विकास).

• Key Initiatives: Swarnajayanti Yojana (1997), Antyodaya Yojana (2000), Annapurna Yojana (2000), and Pradhan Mantri Gram Sadak Yojana.

• (Memory Tip: The decade of 1991-2000 is often referred to as a period of 'Jobless Growth' (रोजगार विहीन समृद्धि), characterized by economic growth without significant employment generation).

Tenth Five Year Plan (2002-2007)

• Objectives: Equitable distribution of resources with justice, doubling per capita income within the plan period, and reducing poverty by 10% by 2022.

Twelfth Five Year Plan (2012-2017)

• Core Objective: Faster, Sustainable, and More Inclusive Growth (तीव्र धारणीय और अधिक समावेशी विकास).

• Key Targets (by 2017):

• Increase average years of schooling to 7 years.

• Achieve a Child Sex Ratio (0-6 years) of 950.

• Connect all villages with roads and electricity.

• Link 90% of households to banking facilities.
  The White Revolution, associated with Milk Production, was pioneered by Verghese Kurien. Overall, India's Five Year Plans focused on Growth, Modernization, and Self-reliance.