India adopted Planning after its independence to promote holistic, comprehensive and integrated growth of the Indian Economy.
The Planning Commission was set up on the 15th of March 1950 through a Cabinet Resolution to formulate five year plan. The Planning Commission formulated twelve five year plans from 1950 to 2014.
| Five Year Plan | Focus/objective |
| First FYP(1951-56) | Influx of refugees, severe food shortage & mounting inflation confronted the country at the onset of the first five-year PlanFocused on agriculture- Land Reforms and Irrigation Projects (Bhakra Nangal, Damodar Valley Corporation etc.); Community development Programme (1952)Based on Harold- Domar Model |
| Second FYP (1956-61) | Mahalanobis Plan Focussed on (a) rapid industrialization- heavy & basic industries (b) Import SubstitutionIron and Steel Plants set up with support of foreign technology at Rourkela, Durgapur and BhilaiIndustrial Policy 1956 was based on establishment of a socialistic pattern of society as the goal of economic policy. |
| Third FYP (1961-66) | Objective: ‘Self-reliant' and ‘Self-generating' economy. Agriculture sector was given top priority.Unsuccessful: Chinese aggression (1962), Indo-Pak war (1965), severe drought 1965-66Failure of Third Plan led to Devaluation of Rupee. |
| Three Annual Plans (1966-69) | Failure of third Five year Plan led to the declaration of “Plan Holiday”;Initiation of Green Revolution |
| Fourth Five Year Plan(1969-1974) | Need for Identification and development of Backward Areas- Programmes such as Drought Prone Area Programme (DPAP), Desert Development Prog (DDP) etc.Nationalisation of 14 Banks in 1969; |
| Fifth FYP (1974-78) | Objective: ‘Removal of poverty' (Garibi Hatao) and ‘Attainment of self reliance'Promulgation of emergency in 1975; Implementation of Prime Ministers 20 Point ProgrammeThe plan was terminated in 1978 by the Janata Party. |
| Rolling Plans(1978-80) | Two Sixth Plans: Rolling Plan by Janata Party (1978-80) and Sixth FYP by Indira Gandhi Government (1980-85)Formulated by the Janata Party. Focused on Employment Creation |
| Sixth Five Year Plan(1980-85) | Increase in national income, modernization of technology, ensuring continuous decrease in poverty and unemployment Programmes: Integrated Rural Development Programme (IRDP), Training of Rural Youth for Self-employment (TRYSEM), National Rural Employment Programme (NREP) etc.Nationalisation of 6 Banks |
| Seventh Five Year Plan(1985-1990) | Focus on ‘food, work & productivity’Economy recorded 6% growth rate against the targeted 5% and thus struggled out of The “Hindu Rate of Growth”. |
| Eighth FYP (1992-97) | Worsening Balance of Payment position, rising debt burden , widening budget deficits, recession in industry and inflation were the key issues during the launch of the plan.Introduction of LPG Reforms |