9th and 10th 5 Year Plan

8/2/2019 9th and 10th 5 Year Plan

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Introduction

1.1 The Ninth Five Year Plan, launched in the 50th year of Indias Independence, will

take the country into the new millennium. Much has happened in the fifty years since

independence. The people of India have conclusively demonstrated their ability to forge a

nation united despite its diversity, and their commitment to pursue development within

the framework of a functioning, vibrant and highly pluralistic democracy. In this process

democratic institutions have put down firm roots and flourished and development has

also taken place on a wide front. As the millennium draws to a close, the time has come

to redouble our efforts at development, especially in the social and economic spheres, so

that the country will realise its full economic potential and the poorest and the weakest

will be able to shape their destiny in an unfettered manner. This will require not only

higher rates of growth of output and employment, but also a special emphasis on all-

round human development, with stress on social sectors and a thrust on eradication of

poverty.

1.2 The Approach Paper to the Ninth Five Year Plan, adopted by the National

Development Council, had accorded priority to agriculture and rural development with a

view to generating adequate productive employment and eradication of poverty;

accelerating the growth rate of the economy with stable prices; ensuring food and

nutritional security for all, particularly the vulnerable sections of society; providing the

basic minimum services of safe drinking water, primary health care facilities, universal

primary education, shelter, and connectivity to all in a time bound manner; containing

the growth rate of population; ensuring environmental sustainability of the development

process through social mobilization and participation of people at all levels;

empowerment of women and socially disadvantaged groups such as Scheduled Caste,

Scheduled Tribes and Other Backward Classes and Minorities as agents of socio-

economic change and development; promoting and developing peoples participatory

bodies like Panchayati Raj institutions, co-operatives and self-help groups; and

strengthening efforts to build self-reliance. These very priorities constitute the objectives

of the Ninth Plan.


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unnecessary to spell out each component of growth as a distinct objective unless it has

direct bearing on the implementation of the over-all growth objective as possible

alternative paths of development. It is in this context that agricultural growth has been

specifically given the highest priority, as it determines a pattern of development thataccelerates GDP growth with a rapid reduction in unemployment and poverty.

2.3 Economic growth is the outcome of numerous factors interacting with each other. For

resource-constrained developing countries, capital accumulation or investment is the

most important factor for increasing the productive capacity of the economy as well as

for improving the productivity of the other factors of production. The Indian planning

methodology has therefore traditionally focused on the relationship linking growth to the

investment rate and the incremental capital-output ratio (ICOR), and the Indian Plans

have been essentially investment plans, dealing with the allocation of investible resources

among different sectors, maintaining inter-sectoral consistency towards attaining the

targetted rates of growth. In a broad sense the results of such plans have not been

unsatisfactory. As can be seen in Table 2-1, except for the Third and the Fourth Plans,

the actual performance of the economy has usually been at or above the planned or

targetted level. During these two Plans, the shortfalls were largely due to exogenousshocks that could not possibly be predicted. The Third Plan witnessed the drought years

of 1965 and 1966, and the Indo-Pakistan War of 1965. The Fourth Plan experienced

three consecutive years of drought (1971-1973) and the first oil-price shock of 1973.

Table 2-1 : Growth Performance in the Five Year Plans

(per cent per annum)

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Target Actual

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1. First Plan (1951-56) 2.1 3.61

2. Second Plan (1956-61) 4.5 4.27

3. Third Plan (1961-66) 5.6 2.84

4. Fourth Plan (1969-74) 5.7 3.30

5. Fifth Plan (1974-79) 4.4 4.80

6. Sixth Plan (1980-85) 5.2 5.66


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7. Seventh Plan (1985-90) 5.0 6.01

8. Eighth Plan (1992-97) 5.6 6.78

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Notes :(1) The growth targets for the first three Plans were set with respect to National Income.

In the Fourth Plan it was Net Domestic Product. In all the Plans thereafter, Gross

Domestic Product has been used

(2) The Eighth Plan actual is based on the Quick Estimate for 1996-97.

2.4 Even today this approach remains useful as a starting point for assessing the limits of

the possible alternative paths of development and the steps required for accelerating the

growth rate of the economy. However, with the economic reforms of the last few years,

some of the traditional instruments of implementing the Plans are no longer available. In

particular, for determining the over-all rate of investment or its sectoral distribution,

market forces, relative prices and incentives now play much more important roles than

direct allocation of resources by public authorities. With the steady reduction in the

share of public investment, both planned and actual, in total investment, as shown in

Table 2-2, the ability of the Government to determine the structure of the economythrough its own investment behaviour has eroded significantly. With the greater

importance of private investment and the movement towards a more market based

system, planning has to move away from direct intervention strategies to planning for

policies. These issues will be addressed in this chapter.

10th FIVE YEAR PLAN

The 10th Five Year Plan (2002-2007) targets at a GDP growth rate of 8% per annum.Taking

note of the inabilities of the earlier Five Years Plans, especially that of the 9th Five Year Plan,

the Tenth Five Year Plan decides to take up a resolution for immediate implementation of all

the policies formulated in the past. This amounts to making appeals to the highergovernment

authorities, for successful completion of their campaigns associated with the rapid

implementation of all past policies.

This GDP growth of 7% is much higher than the world's average GDP growth rate. Thus, thePlanning Commission of India sought to stretch the limit and set targets which would propel
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India to the super league of industrially developed countries.

In a nutshell, the Tenth Five Year Plan India envisages -

More investor friendly flexible economic reforms

Creation of congenial investment environment

Encourage private sector involvement

Setting up state-of-the-art infrastructure

Capacity building in industry

Corporate transparency

Mobilizing and optimizing all financial resources

Implementation of friendly industrial policy instruments

The Tenth Five Year Plan India documents are -

Vol. I: Dimensions and strategies

1. Perspective, objectives and strategy

2. Macroeconomic dimensions

3. Public sector plan: resources and allocations.

4. External sector dimensions

5. Employment perspective

6. Governance and implementation

7. Disaster management: the development perspective

8. Policy imperatives and programmatic initiatives

The primary aim of the 10th Five Year Plan is to renovate the nation extensively, making it

competent enough with some of the fastest growing economies across the globe. It also intends

to initiate aneconomic growth of 10% on an annual basis. In fact, this decision was taken only

after the nation recorded a consistent 7% GDP growth, throughout the past decade.

The 7% growth in the Indian GDP is considered to be considerably higher that the average

growth rate of GDP in the world. This enabled the Planning Commission of India to extend the

GDPlimit further and set goals, which will drive India to become one of the best industrial
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countries in the world, to be clubbed and recognized with the worlds best industrialized

nations.

Like all other Five Year Plans, the 10th Five Year Plan is also devised, executed and

supervised by the Planning Commission of India.

Chief Objectives of the 10th Five Year Plan:

The Tenth Five Year Plan proposes schooling to be compulsory for children, by the

year 2003.

The mortality rate of children must be reduced to 45 per 1000 livings births and 28 per

1000 livings births by 2007 and 2012 respectively

All main rivers should be cleaned up between 2007 and 2012

Reducing the poverty ratio by at least five percentage points, by 2007

Making provision for useful and lucrative employments to the population, which are of

the best qualities

According to the Plan, it is mandatory that all infants complete at least five years in

schools by 2007.

By 2007, there should be a decrease in gender discriminations in the spheres of wagerate and literacy, by a minimum of 50%

Taking up of extensive afforestation measures, by planting more trees and enhance the

forest and tree areas to 25% by 2007 and 33% by 2012

Ensuring persistent availability of pure drinking water in the rural areas of India, even

in the remote parts

The alarming rate at which the Indian population is growing must be checked and fixed

to 16.2%, between a time frame of 2001 and 2011 The rate of literacy must be increased by at least 75%, within the tenure of the Tenth

Five Year Plan

There should be a decrease in the Maternal Mortality Ratio (MMR) to 2 per 1000 live

births by 2007. The Plan also intended to bring down the Maternal Mortality Ratio to 1

per 1000 live birth by the year 2012.
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The 10th Five year Plan of India in a nutshell:

Increasing the mobility of all the available financial resources of India, and optimizing

them as well

Setting up of a state-of-the-art infrastructure for all the existingindustries in India.

Encourage the initiative of capacity building within the Indian industrial sector

Creating a friendly, amiable and pleasant investment environment in India

Encouraging sufficient transparency in the corporate sectors of India

Introduction of reforms in the industrial sectors, which are more investor-friendly in

nature
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Documents

9th and 10th 5 Year Plan