Read this article to learn about the various strategies of economic planning in various plans of India…
The term strategy means to a specific choice of course of action to attack the several problems at hand in the concept of economic planning. It can also be a basic long term policy to achieve given objectives or goals. The strategy of economic planning in India is a combination of two several aspects like balance and unbalanced growth.
- Strategy in First Plan (1951-1956):
In this first plan, they haven’t any explicit strategy. Its objectives are to prepare a strong base for more industrial growth and development in the future. This economic plan helps to overhead the economic and social factor like power, water, fuel, gas, communication, and transportation.
- The Mahalanobis Strategy for the Second Plan (1956-1961):
In this second five-year plan helps to change the strategy of development. It innovates more emphasis on the development or growth or modernization of the industrial sector of the economy. This economic development strategy is based on two assumptions:
(i) Reduce the placement facility layouts on agriculture and gives the primary position to industrialization.
(ii) Increases the working capacity of heavy industries.
- Strategy in the Third Plan (1961-1966):
This third-year plan helps to develop the agriculture and irrigation sector. It also balanced stress on the development of power, coal, chemicals, machinery, and engineering industries. These types of industries are very essential for making the economy self-reliant.
- Strategy in the Fourth Plan (1969-1974):
In this fourth five year plan the strategy of growth and development was as follows:-
(a) Increases the rate of national income rate from 5 to 6 percent per annum.
(b) Maintain the stability of the economy in foodgrain prices.
(c) Provide social justice and equality by providing the proper employment facilities and increase production capacity.
(d) It reduces the labor-intensive techniques in the rural sector and helps o expand the manufacturing sector in the urban areas to create more employment opportunities.
- Strategy in Fifth Plan (1974-1979):
(i) The optimum growth rate of 5.5% per annum.
(ii) Development of production and employment opportunities.
(iii) Create an event of the national program for the purpose of covering the minimum needs like educational, drinking water, medical care in village areas, rural roads, electrification, and so on.
(iv) Prepare a progarmme of social welfare.
(v) Importance on agriculture, key, and valid industries producing goods for whole consumption.
(vi) Increases the channel fo distribution in rural or under-developed areas.
(vii) Promotion of exports.
(viii) Equalization in price, wages, and incomes.
- Sixth Plan Strategy (1979-1985):
In this five year plan, the government focuses on the development of their rural areas, enhancement of the poorer peoples through a direct attack on unemployment and poverty. They provide more and more resources to the development of rural areas and building up of under-developed areas. There are various prgarammes was established under this scheme like NREP, IFDP, and REG.
- Seventh Plan Strategy (1985-1990):
This five-year plan indicates the objectives of food, productivity, and work. Its main objective was creating productive employment and maintaining that growth in employment opportunities is faster than the growth of the labor workforce. In this scheme, the government target to enhance the development of agriculture, irrigation and employment facilities through various programmes like NREP, IFDP, and REG.
Focus Keyword- Strategies of Economic Planning
This progarmmes helps to reduce the poverty level and improves the quality of life and also the standard of living.
- The strategy of the Eighth Plan (1992-1997):
In this plan, there are various numbers of factors are mainly considered:-
(i) Energy and Transport: It has given importance to the transport and energy sectors. This two sector covers the 40% outcome of the public sector and if a government wants to develop the area of rural, then it will have to focus on these two things.
(ii) Rural Sector: This plan provides 35K crore rupees for rural development. This is the largest allocation of funds which is given by the government for the development of rural areas.
(iii) Irrigation: Irrigation sector has been allocated 32K crore rupees of 7.5 percent of the total public sector structure. This fund helps to improve the productivity in agricultural areas and provide the benefits of a green revolution in several areas so that it helps to increase the potential of irrigation facilities.
- Strategy in the Ninth Plan:
In this strategic plan, the government was focused on the acceleration of economic growth of 7 percent of GDP during the ninth plan period which 4-5% will come from the agriculture sector and 9.3% from industry.
This plan also helps to accelerate the development criteria of the agricultural sector. If development is to make an important impact on the significant conditions of poverty and employment facilities in India this bias need to be changed.