Second five year plan of india. Failures of Economic Planning in India 2019-01-30
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The small and cottage industries remained sluggish during this plan. The institute conducted several programs to search for talented individuals. During the Ninth Plan period, the growth rate was 5. However, lack of investment in agriculture and a period marked by food shortages and drought led to inflation. In order to prevent monopolies and to promote economic developments in backward areas, unfeasible manufacturing units were augmented with subsidies. With the Prime Minister as the ex officia Chairman, the commission has a nominated Deputy Chairman, who has rank of a Cabinet minister. The administrative apparatus was proving unequal to the new and unfamiliar tasks.
Energy was given prority with 26. A significant increase in national income and a marked improvement in living standards could not be secured without a substantial increase in production and investment. The number of school-going children increased by 39% while that of technical and engineering graduates went up by 160%. The gap in resources was made up partly through deficit financing and partly through external assistance. Food articles as a group went up by 27%; industrial raw-materials by 45% and manufacture by over 25%. Stress was laid on employment, poverty alleviation, and justice. Thus, under pressure, the country took the risk of reforming the socialist economy.
Power : This impressive industrial expansion would not have been possible but for the attention paid to the power generating capacity which increased from 3. Create 70 million new work opportunities. The plan followed the Mahalanobis model, an economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953. This model is known to have set the statistical foundations for state-directed investments and created the intellectual underpinnings of the license-raj through an elaborate input-output model. During this Plan, an inflationary situation started in the economy. To promote democracy, there was commencement of the Panchayat elections.
This step was taken to ensure that India does not have to bank on others for food products. There was also a substantial expansion in road transport, shipping, and air services. Similarly, small savings also fell short of the target by Rs. By following the Mahalanobis model, the then government wanted that there should be optimum assignment of the fund among the various productive segments. When the 1st five year plan was introduced people were slightly apprehensive about the success of the plan.
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Objectives of the Second Five-Year Plan 3. Again, during the period 1965 to 1966, owing to Green Revolution, once again agriculture attracted attention. The Seventh Plan marked the comeback of the Congress Party to power. In 1965-66, 1966-67, 1979-80, 1982-83 and 2002-03, the economy received a big jolt due to failure of monsoons. Accordingly, relative shares of industry, including village and small industries, and minerals, went up from 4% in the First Plan to 24% in the Second Plan.
The working of the plan also revealed serious organisational weaknesses and deficiencies, both at the policy making as well as the executive levels, in the administrative set up of the Central and state governments. Currently, India is in its 11th five year plan. Modernization of industries was a major highlight of the Eighth Plan. In India, the third five year plan have also laid emphasis on soil conservation, irrigation, afforestation, and dry farming. The Sino-Indian war led to inflation and the priority was shifted to price stabilization. Employment : In the course of the Second plan, the additional employment opportunities created amounted to about 8 million, of which about 6. Similarly, the three new fertiliser plants in the public sector at Nangal, Neiveli and Rourkela were delayed by one to two years.
Domestic production of industrial products was encouraged, particularly in the development of the public sector. The Plan expected a growth in labor force of 39 million people and employment was expected to grow at the rate of 4 percent per year. The output of many other industries such as bicycles, Sewing machines, telephones, electrical goods, textiles, and sugar machinery also recorded substantial expansion. Over the Five Years period, the rise in the general index of wholesale prices was about 30%. Population increase proved far more rapid than even the most pessimistic prophets had forecast.
Agriculture programmes were formulated to meet the raw material needs of industry, besides covering the food needs of the increasing population. There were serious shortfalls in the production of cotton, jute, sugar cane, oil seeds, coal, and electric energy. Fourth Five-Year Plan 1969-74 : The Fourth Plan had two objectives in the agricultural sector; i to provide the conditions necessary for a sustained increase of food production by about 5 per cent per annum over the decade 1969-78 and ii to enable a large section of the rural population including small farmers, farmers in the dry areas and agricultural labourers to participate in the process of agricultural development and share its benefit. The food production increased by 10 per cent only as against the target of 30 per cent. Social Services : The development of the human resources of the country through the provision of facilities for education, health and social welfare was one of the major objectives of planned development.
