Unit-14
India's five year plans with special reference to 12th Five Year Plans 2012-17.
According to this plan, ‘It must be guided by a vision of India moving forward during a manner that might ensure a broad-based improvement within the living standards of all the people through a growth process which is quicker than within the past, more inclusive, and also more environmentally sustainable.‘ The objectives of this Plan are as follows:
• A rate of growth of 9 percent
• Focus on the agricultural sector and have a mean growth of 4 percent during the Plan period
• Restrain inflationary pressure
• For the expansion of GDP, make sure that the commercial energy supplies grow at a rate of 6.5-7 percent per annum .
• Develop a holistic water management policy
• Suggest new legislation for the acquisition of land
• Continue specialise in health, education, and skill development
• Large investments within the development of the infrastructure sector
• Emphasis on the method of fiscal correction
• Efficient use of obtainable resources
12th five year plan targets achievements and failures in India are:
Achievements of Planning:
1. Increased Growth Rate:
Economic planning targets at bringing about fast economic development altogether sectors.
It aims at increased rate of growth .
India’s macroeconomic results has been moderately good in terms of GDP rates.
2. Growth of Economic Infrastructure:
India’s leads to making required economic infrastructure is basically appreciated. At inception of economic planning road kilometer was 4 lakh kms. India has now 3 million km of road network making it one among largest within the world.Other modes of transport like shipping, civil aviation have also widened phenomenally.
3. Development of Basic and Capital Goods Industries:
Major area of success of Indian planning is growth of basic and capital goods industries. With Mahalanobis tricks for development during Second Plan few basic and capital goods industries like iron and steel has remarkable growth.
4. Higher Growth of Agriculture:
Most important aspect of India’s Five Year Plans is that the overall rate of growth of food production has now exceeded rate of growth of population.
Early years of designing agricultural performance was miserable showing the emergence of food crisis.Due to impact of bio-chemical revolution in Indian agriculture the food crisis seems to be of the past.
5. Savings and Investment: Rise in domestic savings rate from 10 p.c. Of GDP at initial stages of designing to around 19 p.c. In 1980-81 is certainly impressive.
Major Failures of Planning:
1. Inadequate Growth Rate:
Quantitative terms rate of growth of Indian economy could also be good but not satisfactory in any standards.
Except the primary and Sixth Five Year Plans real rate of growth remained below targeted growth rates of GNP and per capita income.
Only in recent plans actual rate of growth has exceeded the plan targets.
2. Whither India’s Socialistic Society:
Indian planning targets at making a ‘socialistic pattern of society’ otherwise capitalistic framework through various socialistic measures.
We haven't any important progress towards the aim of achieving socialistic pattern of society even after nearly 58 years of designing .
Concept of socialistic pattern of savings and loan has been discarded once we introduced new policy measures in mid-1991. Indian economy moves on capitalistic path.
3. Economic Inequality and Social Injustice:
Twin aspects of social justice involves one hand i.e. reduction in economic inequalities and on other the reduction of poverty.
Rise in value with economic power in hands of few people isn't wished.
In a capitalist framework inequality the distribution of income and wealth is inevitable.
India’s socio-political set-up has vast inequalities exist.
Indian plans targets at lessening such inequalities in order that benefits of economic development percolate right down to lower group of the society.
4. Unemployment:
It never got the priority it required.
Employment generation programme has received a nasty shock and problem of unemployment is surging one after plan. Another.
BOOKS
1. Indian Economy – Rudra Dutt & Sundarram
