Economic planning is the process of allocating physical as well as human resources among different uses. For this, detailed schemes are prepared. Through economic planning, endeavors are made to achieve the stipulated objectives.
By adopting a proper planning, growth is achieved and nations as well as citizens get benefit and the standard of living raise. In fact, the objectives of economic planning are to abolish poverty, illiteracy, and ignorance and opening new avenues.
Planning commission was constituted on 15 the March 1950. Now it is renamed and restructured as NITI Aayog, which came into existence on 1st January, 2015. It is an advisory body.
First Five Year Plan (1951-1956)
First five year plan was launched on 1st April, 1951. It was focused in the development of the primary sector. Agriculture was on the top priority. It was during this plan that five IITs (Indian Institute of Technology) were established. This plan was success as the set targets were achieved. The University Grants Commission was established to improve the standard of higher education in the country.
Second Five Year Plan (1956-1961)
In this plan, the highest priority was given to industrialization. This plan was based on the model prepared by Prof P C Mahalanobis. Special focus was made on the development of basic and heavy industries. During this period, five steel plans were set up in Bhilai, Durgapur and Rourkela. North east India was connected with more railway lines. Apart from it, Tata Institute of Fundamental Research and Atomic Energy Commission were established.
Third Five Year Plan ( 1961-1966)
The primary objective of this plan was the long term development of Indian economy. Stressed was made to improve the production of wheat. War with China in 1962 and with Pakistan in 1965-66 weakened the economy and led to inflation. In the third plan the target growth rate was 5.6 % but the actual growth rate was 2.4%.
Plan Holiday (1966-1969)
During this period three annual plans were prepared
Fourth Five Year Plan (1969-1974)
Growth with stability was the primary objective. In this plan, efforts were made to enlarge the income of rural population and supply of goods of mass consumption. During this plan period a war with Pakistan was fought. The targeted growth rate was 5.6, but the achieved growth rate was 3.3.