 Visvesvaraya Plan (1934)

 Proposed by M. Visvesvaraya, ex-Dewan of Mysore state.

 Published "Planned Economy in India" in 1934.
 Emphasized democratic capitalism, akin to the USA.
 Focused on industrialization and doubling national income in a decade.
 Ignored by British government but inspired national planning
aspirations.

 FICCI Proposal (1934)

 Recommended national planning by Federation of Indian Chambers of

Commerce and Industry (FICCI).
 N.R. Sarkar, FICCI President, advocated for comprehensive economic
development plan for India.

 National Planning Committee (1938)

 Formed by Indian National Congress.

 Initiated by Netaji Subhash Chandra Bose at INC's Haripura Session
(1938).
 Led by Jawaharlal Nehru.
 Aimed to draft detailed economic plan for independent India.

 Bombay Plan (1944)

 Proposed "A Plan of Economic Development for India".

 Drafted by leading capitalists including JRD Tata, GD Birla, and others.
 Disregarded by political parties and business interests.
Gandhian Plan (1944)

 Proposed by Shriman Narayan, principal of Wardha Commercial College.

 Advocated economic decentralization with a focus on agriculture.
 Emphasized rural development through cottage industries.

People’s Plan (1945)

 Introduced by M.N. Roy, Chairman of the Post-War Reconstruction Committee

of Indian Trade Union.
  Gave top priority to agriculture.
 Based on Marxist socialism, aimed for nationalization of agriculture and
production.

Sarvodaya Plan (1950)

 Formulated by Jaiprakash Narayan, inspired by Gandhian and Sarvodaya

ideals.
 Focus on small-scale industries, cotton industries, and agriculture.
 Highlighted land reforms and decentralized participatory planning.

Planning Commission (1950)

 Established by Cabinet Resolution, an extra-constitutional and non-statutory

body.
 Jawaharlal Nehru served as the first Chairman.
 Adoption of Five-Year Planning
 India implemented a system of five-year plans to address socio-
economic challenges.
 Objective: Identify crucial problems, utilize available resources
efficiently, and review progress every five years.

Architects of Indian Planning

 Key Figures: Jawaharlal Nehru, P.C. Mahalanobis, V.R. Gadgil, V.K.R.V. Rao.

Objectives of Planning

 Economic Growth
 Employment Generation
 Income Inequality Reduction
 Poverty Alleviation
 Economic Modernization
 Social Justice and Equality

Evolution of Planning Strategies

 First 8 Plans
  Emphasis on expanding the public sector with significant investments
in basic and heavy industries.
 Ninth Plan (1997) onwards
 Reduced emphasis on the public sector.
 Transition towards indicative planning.

First Five-Year Plan (1951-56)

 Based on the Harrod-Domar model.

 Focus on agricultural development, including irrigation and power projects.
 Targeted growth rate: 2.1%
 Achieved growth rate: 3.6%

Second Five-Year Plan (1956-1961)

 Aimed at rapid industrialization with a focus on heavy industries and capital

goods.
 Developed based on the P.C. Mahalanobis Model.
Third Five Year Plan (1961-1966) (Gadgil Yojana/Plan)

 Aimed at achieving economic independence and self-sufficiency.

 Introduced the goal of balanced, regional development.
 Major Challenges:
 Two wars: China (1961–62) and Pakistan (1965–66).
 Severe drought-led famine in 1965–66.

Annual Plans (Plan Holiday) (1966-1969)

 Focus shifted to self-reliance.

 Implemented annual plans with equal emphasis on agriculture, allied sectors,
and industry.
 Introduction of the Green Revolution (1966-67).

Fourth Five Year Plan (1969-1974)

 Goal: Growth with stability and progressive self-reliance.

 Targeted growth rate: 5.7%
  Achieved growth rate: 3.3% (fell short of target).
 Major Challenges:
 Droughts and Indo-Pak War of 1971–72 (Bangladesh Liberation War).

Fifth Five Year Plan (1974-1979)

 Focus on poverty alleviation and self-reliance.

 Targeted growth rate: 4.4%
 Achieved growth rate: 4.8% (successful plan).
 Terminated in 1978 due to the change in regime (Janta Party).
 Major Events:
 Disturbances due to the emergency and change of government.
3 Rolling Plan (1978-1980)

 Replaced 5-year plans with annual plans.

Sixth Five Year Plan (1980-1985)

 Objective: Poverty eradication and employment generation.

 Famous Slogan: "Garibi Hatao" (Eradicate Poverty)
 Targeted growth rate: 5.2%
 Achieved growth rate: 5.7% (successful plan)

Seventh Five Year Plan (1985-1990)

 Objectives: Emphasized rapid food grain production, increased employment,

and productivity.
 Targeted growth rate: 5%
 Achieved growth rate: 6% (successful plan)

Two Annual Plans (1990-91 & 1991-92)

 Eighth Plan (1990–95) couldn't be implemented due to political

destabilization, fiscal imbalances, and the Balance of Payments crisis.

Eighth Five Year Plan (1992-1997)

 Rao-Manmohan Model - LPG (Liberalization, Privatization, Globalization).

  Objective: Development of human resources (employment, education, public
health).
 Adoption of Indicative planning.
 Targeted growth rate: 5.6%
 Achieved growth rate: 6.8% (successful plan)

Ninth Five Year Plan (1997-2002)

 Objective: Growth with justice and equity.

 Targeted growth rate: 7%
 Achieved growth rate: 5.6%
 Major Events: Economic slowdown due to the South East Asian Financial Crisis,
Kargil War.

Tenth Five Year Plan (2002-2007)

 Objective: To double India's per capita income in the next 10 years.

 Targeted growth rate: 8%

Eleventh Five Year Plan (2007-2012)

 Objective: Faster and inclusive growth.

Twelfth Five Year Plan (2012-2017)

 Objective: Faster, sustainable, and more inclusive growth.

 Growth rate target: 9%
Twenty Point Programme (TPP)

 Launched in July 1975.

 Aimed at coordinated and intensive monitoring of various schemes by the
Central and State Governments.
 Basic objective: Improve the quality of life, especially for those living below the
poverty line.

 Evolution of Multi-Level Planning

 1950s-1960s
 States demand right to plan at state level.
  Centre delegates planning power to states.
 Emphasis on promoting planning at lower administrative levels.

 District-Level Planning

 Urban Areas:
 Municipality & corporation involvement.
 Rural Areas:
 Panchayats & tribal boards engaged in block-level planning.

 Strata of Planning

 Centre-Level Planning
 Five Year Plans, Twenty-Point Programme, MPLADS.
 State-Level Planning
 State Planning Boards led by CMs.
 District-Level Planning
 District Planning Boards chaired by District Magistrates.
 Block-Level Planning
 District Planning Boards oversee block-level planning.
 Local Level Planning
 Implemented via blocks with District Planning Boards as nodal
agency.

 Variants of Local-Level Planning

 Village-Level Planning
 Hill Area Planning
 Tribal Area Planning

 Central Sector Schemes

 100% funded by Union Government.

 States act as implementing agencies.
 Subjects mainly from Union List.

 Centrally Sponsored Schemes (CSS)

  Funding shared by Centre & states.
 Implementation by state governments.
 Subjects from State List to prioritize areas needing attention.

 Central Plan Assistance

 Financial aid for State Five-Year Plans.

 Components:
 Normal Central Assistance (NCA): Untied, formula-based
distribution (Gadgil-Mukherjee Formula).
 Additional Central Assistance (ACA): For externally aided projects
(EAPs) without ceiling.
 Special Central Assistance (SCA): For special projects/programs
(e.g., Western Ghats Development Programme, Border Areas
Development Programme).

 Formation

 Government replaced Planning Commission with NITI Aayog in 2015.

 Extra-constitutional Body formed via Union Cabinet resolution.
 Premier policy Think Tank fostering cooperative and competitive
federalism.
 Operates with a Bottom-Up approach based on 7 Pillars of Governance.

 Objectives

 Foster cooperative federalism.

 Develop credible village-level plans.
 Incorporate national security interests into economic strategy.
 Ensure equitable benefit from economic progress.
 Monitor and evaluate program implementation.
 Focus on technology upgradation and capacity building.
 Provide advice and encourage partnerships.
 Create knowledge, innovation, and entrepreneurial support system.
 Resolve inter-sectoral and inter-departmental issues.
 Execute national development agenda.

 Composition
  Chairperson: Prime Minister of India.
 Governing Council: Chief Ministers of all states and Lt. Governors of
Union Territories.
 Regional Councils: Address specific issues impacting multiple states or
regions.
 Chaired by the Chairperson of NITI Aayog or nominee.
 Formed for a specified tenure.
 Experts, specialists, and practitioners as special invitees nominated by
the Prime Minister.

NITI Aayog Planning Commission

Serves as an advisory Think Tank. Served as an extra-constitutional body.
Draws membership from a wider expertise. Had limited expertise.
Serves in the spirit of Cooperative Federalism as states States participated as spectators in annual plan
are equal partners. meetings.
Secretaries to be known as CEO appointed by Prime
Minister. Secretaries were appointed through the usual process.
Focuses upon the Bottom-Up approach of Planning. Followed a Top-Down approach.
Imposed policies on states and tied allocation of funds
Does not possess a mandate to impose policies. with projects it approved.
Does not have powers to allocate funds, which are Had powers to allocate funds to ministries and state
vested in the Finance Minister. governments.