Significant achievements of Five Year Plans in India are as follows;
Growth of agriculture output: India became self-sufficient in food grains. An increase in farm output during the First Plan helped to end inflation, stabilized the economy, and paved the way for a higher rate of development during the Second Plan. Many irrigation projects were initiated during this period, including the Bhakra, Hirakud, and Damodar Valley dams. Institutional and technical advancements in agricultural planning have significantly contributed to the growth of agriculture in our nation. The plan accorded priority to the spread of HYV cultivation, and greater use of fertilizer, pesticides, and insecticides to increase agricultural production. The average annual growth rate of agricultural output was 2.8% during the planning period.
Reduction in Infant mortality: The World Health Organization (WHO), with the Indian government, addressed children’s health and reduced infant mortality, indirectly contributing to population growth.
Growth of National Income: Before the implementation of five-year planning India’s national income was growing at 0.5%. During the planning period, India’s average growth has been around 5%.
Growth of per capita income: The rise in national income during the First Five Year Plan period, 1951–52 to 1955–56, is estimated at 18.4 per cent, and that in per capita income at 11.1 per cent. The rapid population growth slowed down the growth in the per-capita income. The target growth rate was 4.5% and the actual growth rate was 4.27%.
Establishment of heavy industries: The Government thought that industrialization provided greater opportunities for employment in small and large-scale industries. In an industrial economy, industry absorbs underemployed and unemployed farmworkers, thus increasing community income. However, such industries require huge investments. There was no wealthy private person/company to invest in it. The profitability of such ventures was doubtful due to delay. Therefore, importance was given to the establishment of heavy industries only, the main thrust of industrial development was on iron and steel, heavy engineering, and fertilizer industries. Three new iron and steel plants were located in Bhilai, Durgapur, and Rourkela. Industries like sugar, cotton, jute, vanaspati, metal-based, and chemical industries were given much importance, and during this planned period, much progress was made in alloys, tools aluminum, automobile tires, electronic goods, Machine Tools, Tractors, and special steel. During the planned period, the growth rate of industrial production was roughly 7% annually. Industries producing capital and essential goods have expanded significantly. The nation is now independent in the consumer products sector. The industrial sector has evolved and been modernized.
Economic and social infrastructure: During the planning period, financial and insurance infrastructure, as well as transportation and communication infrastructure, irrigation, and power infrastructure, has grown significantly. Facilities for health and education have seen a tremendous increase.
Foreign trade: India’s trading abroad has also expanded astronomically. The value of international commerce in 1948–1949 was Rs. 792 crores. India’s merchandise exports are projected to hit USD 450 billion this fiscal, overcoming challenges like the Red Sea crisis. FIEO President Ashwani Kumar emphasized the need for marine insurance, reasonable freight charges, and easy credit for MSMEs, and concluded free trade agreements to boost exports. In the fiscal year 2021-22, India’s overall exports (Merchandise and Services) are estimated at USD 676.5 billion, with merchandise contributing USD 422 billion and service exports USD 254.5 billion. Overall imports for the same period are estimated to be USD 495.83 billion.
Financial resources allocated for the Five-Year Plans: The financial resources allocated for the Five-Year Plans in India were drawn from various sources such as Gross Budgetary Support (GBS) to fund the plan investments throughout the five-year plan, State Government Budgets contributing to achieve the plan objective, Public sector enterprises and private sector enterprises contributing a portion of their profits or funds towards plan investments and foreign entities (FDIs) investing capital in India to establish or expand businesses that produce goods and services. This inflow of foreign investment is utilized to support various projects within the scope of the five-year plans.
Related Posts:
| Definition of Economic Planning | History of Economic Planning | Objectives of Economic Planning |
| Types of Planning | Achievements of Planning, and Financial resources for 5-year plans |
