7

th

Five Year Plans of

India
WELCOME

A PLAN
A Plan is a deliberate attempt to spell out how
the resources of a country should be put to use.
It has some general and specific goals, which are
to be achieved within a specific period of time.
The general goals of a Plan are growth,
modernization, full employment, self-reliance and
equity. But all Plans may not give equal importance
to all of them.
Each Plan can have some specific goals like
improvement of agriculture. For example our first
five-year plan was geared to improving the state of
agriculture and the second to improving Industry.

Why to Plan ???

After independence, India was in dire conditions
and needed to start acting soon
Some of the problems necessitated need for an
immediate plan:
Vicious circle of poverty
Foreign Trade
Need for Rapid industrialization
Population pressure
Development of Natural resources
Capital Deficiency & Market imperfections

Planning commission of india

The Planning Commission was set up in 15th
March, 1950 by a Resolution of the Government of
India. In 2014 it was replaced by NITI AAYOG
The economy of India is based on planning
through its five-year plans, developed, executed
and monitored by the Planning Commission . With
the Prime Minister as the ex officia Chairman, the
commission has a nominated Deputy Chairman,
who has rank of a Cabinet minister. Montek Singh
Ahluvaliya was the last Deputy Chairman of the
Commission.
Now Arvind Panagariya is Vice Chairman of NITI

Seventh Five Year Plan

(1985 to 1989)
Congress comes into power

Objectives:
To upgrade the industrial
sector
To generate more scope of employment
Improved facilities for Education to girls
Increase productivity of small and large scale
farmers
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Core Goals
Decentralization of planning
Public participation in development
Maximum possible generation of productive
employment
Removal of poverty
Reduction in income disparities

Seventh plan (1985-1989)

1. The Seventh Plan marked the
comeback of the Congress Party to
power.
2. The plan lay stress on improving the
productivity level of industries by
upgradation of technology.
3. The thrust areas of the 7th Five year
plan have been enlisted below:
Social Justice
Removal of oppression of the weak
Using modern technology
Agricultural development
Anti-poverty programs
Full supply of food, clothing, and
shelter

4. Based on a 15-year period of striving towards steady

growth, the 7th Plan was focused on achieving the
pre-requisites of self-sustaining growth by the year
2000.
5. 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.
6. Some of the expected outcomes of the Seventh Five
Year Plan India are given below:
Balance of Payments (estimates): Export - Rs. 33
thousand crore, Imports - (-)Rs.54 thousand crore,
Trade Balance - (-)Rs.21 thousand crore
Merchandise exports (estimates): Rs. 60,653 crore
Merchandise imports (estimates): Rs. 95,437 crore
Projections for Balance of Payments: Export Rs.60.7 thousand crore, Imports - (-) 95.4

Effective Planning
Vision for the future Long term prespective
Sustain and accelerate the momentum of
economic growth
Agricultural industry
Infrastructure industry
Technology development
Measures concerning poorer section

Effective Planning

Objectives and thrusts for longer terms :

eliminate poverty and illiteracy

achieve near full employment

secure satisfaction of the basic needs of food, clothing and shelter

provide health for all

Increase in decade
Growth Performance
1975 - 1985
8
7
6
5
4
3
2
1
0
Agriculture

Industry

Overall

Major Planning Objectives

Agriculture

Employment

Reduce Poverty

Productivity

Infrastructure

Human Resource

Agriculture Objectives

Increase in production and promoting

horticulture

Expansion system of food security

Rise in per capita consumption

Regionally balanced agriculture

Agriculture Objectives

Dry land Agriculture

Enhancing incomes of farmers

Conclusion Agricultural strategy of the

plan, with its emphasis on more even and
balanced distribution of agricultural growth,
will also help to reduce regional disparities.

Employment Objectives

Faster employment opportunities than labour force

Agricultural opportunities in agricultural backward
regions
Employment programs :
National Rural Employment program
Rural Landless Employment Guarantee program
Funding to improvise private sectors

Employment Objectives
Expected Employment Growth Rate/year
5%
4%
4%
3%
3%
2%
2%
1%
1%
0%

Employment force

Labor force

Poverty Reduction
Objectives
Removal of Poverty Major concern always
Anti Poverty Programs and Employment
Oriented
Integrate Area development programs
Eradicating problems of backward more
vulnerable class
Perception of needs and priorities

Poverty Reduction
Objectives
Expected Poverty Decline Rate

1989 - 90
Expected Poverty
Decline Rate
1984 - 85

0%

10%

20%

30%

40%

Productivity Objectives
Utilizing and upgrading present assests
(agricultural and industrial)
Measures to increase cropping potential:
coordinated approach irrigation
Drainage
Land use management

Productivity Objectives

Modernisation

-Upgrading technology
-Reduce cost/cost cutting
- Improving quality

Productivity Objectives

Implementing New Developments :

Micro-electronics
Informatics
Telematics
Biotechnologies
Material sciences
Oceanography
Space technology

Infrastructure Objectives

To avoid shortage of power, transport and

coal

Significant boost in energy supply in private

sectors

Improvise on energy in rural areas

Minimum Needs program biogas,

smokeless chullahs

Infrastructure Objectives

30
20
10
0

Expected hike in supply of Energy

Human Resource
Development

Facilitate development in human potential

Self Respect

Self Reliance

Dignity

Human Resource
Development

Human development programs :

Education
Primary health care
Clean and Adequate drinking provision
Sanitation

Measures for ecological balance and

preservation of environment

Financing the Plan

Modest approach

Bankable and Credible

Rate of investment and domestic savings at

no risks

Expected Increase in
financing
30
25
20
15
10
5
0

1984 - 85
1989 - 90

Conclusion
Removal of poverty
the building of a modern society
making maximum possible use of science
and technology
attainment of self-reliance
Seventh Plan constitutes yet another
important milestone in the nation's quest to
rid this country of the ancient scourges of
poverty, ignorance and disease.

Period between 1989-91

1. 1989-91 was a period of political instability in India
and hence no five year plan was implemented.
Between 1990 and 1992, there were only Annual
Plans.
2. In 1991, India faced a crisis in Foreign Exchange
(Forex) reserves, left with reserves of only about $1
billion (US). Thus, under pressure, the country took
the risk of reforming the socialist economy.
3. P.V. Narasimha Rao (28 June 1921 23 December
2004), also called Father of Indian Economic Reforms,
was the twelfth Prime Minister of the Republic of India
and head of Congress Party, and led one of the most
important administrations in India's modern history
overseeing a major economic transformation and
several incidents affecting national security.
4. At that time Dr. Manmohan Singh launched India's

Achievements
:
Using modern
technology
Full supply of food, clothing, and
shelter
Making India an Independent
Economy
Anti-poverty
programs

Problems faced:

1989-91 was a period of political

instability in India & hence no Five Yr
Plan was implemented
In 1991, India faced a crisis in Foreign
Exchange Reserves

Thank You!

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