India's Five Years Plan

6466 WordsSep 29, 201026 Pages
Origin Five year plans were first introduced in the erstwhile Soviet Union in 1928 for controlled and rapid economic development. Much of the Soviet industrial successes are a result of the implementation of its five year plans. In 1950, India’s prime minister Jawaharlal Nehru, impressed by the Soviet system, adopted five year plans as a model for economic development, and established the Planning Commission which was to act independent of any cabinet and was answerable only to the Prime Minister, who is also Chairperson of the commission. Draft plans were to be approved by the National Development Council, comprising the Planning Commission and the Chief Ministers of all states. An approved plan is then passed by the cabinet and then in…show more content…
But Nehru favors controls over private enterprise. "An army," he explained, "does not occupy a country by placing a soldier in every nook and cranny: a gun mounted on a hill enables an army to control surrounding areas effectively." Overview of the Plans The economy in India is based in part on planning through its five years plans developed, executed and monitored by the Planning Commission. With the Prime Minister as the ex officio Chairman, the commission has a nominated Deputy Chairman, who has rank of a Cabinet minister. Montek Singh Ahluwalia is currently the Deputy Chairman of the Commission. The tenth plan completed its term in March 2007 and the eleventh plan is currently underway. In 1951, India’s first Five Year Plan (1951-55) was unveiled. While the first plan placed greater emphasis on agriculture, the second Five Year Plan (1956-60) sought to build up an industrial base for the country, particularly in the public sector. However, the chief landmark in this period was wide ranging and broad-based reforms in the village power structure by the abolition of the Zamindari system and the creation of cooperatives among the rural poor to stimulate agricultural growth. The Third Five Year Plan (1961-65) was interrupted by the 1962 war with China and the 1965 war with Pakistan, and it was evident that its targets would not be met. Its main basis was the conviction that an increase in agricultural
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