Planning Commission of India for APSC : What is NITI Aayog : Evolution of Indian Planning for APSC

A Brief Note on all the Five-Year Plans of India from 1951 to 2017 for APSC Prelims & Mains

Hello, aspirants are you preparing for UPSC/APSC or any other Govt Exams 2022. If yes, then you must be aware of the most important Indian Polity notes for the upcoming exam preparation. Therefore every aspirants need to know the Indian Polity notes on Planning Commission for UPSC/APSC and all other govt exams. In this regard “World_Polity” decides to provide you the most important Planning Commission of India for APSC : What is NITI Aayog : Evolution of Indian Planning for APSC. Infact the most important Growth of Indian economy under the various-five year plans of the Planning commission are one among the foremost relevant and important parts of the Competitive Exams. Therefore a brief note on all the Five-Year Plans of India from 1951 to 2017 will be very important from Indian Polity for the all kinds of Govt Exams 2022.

Five-Year Plans of India & NITI Aayog

Indian Polity notes on Planning Commission and NITI Aayog for APSC

In this article, we have listed important Indian Polity notes on Planning Commission and NITI Aayog for APSC 2022 that can be asked in the upcoming prelims exam. Hence, here we’re covering the complete detail of Planning Commission of India and all the Five-Year Plans of India from 1951 to 2017 as well as about NITI Aayog which was formed in 2015 by abolishing Planning Commission. This Indian Polity notes are also equally important for other exams such as Assam TET, DHS, JAA, SSC, Defence, Railway, and Banking etc.

Five-Year Plans of India from 1951 to 2017

The Indian Polity GK Questions & Answers covers a variety of topics such as Planning Commission the five year plans for UPSC. Well the Growth of Indian economy under the various-five year plans of the Planning commission are the integral part of Government of India. These central Planning commission prepared various welfare plans and schemes for the Citizens of India. 

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Planning Commission and NITI Aayog

Well there are mainly two very important GK Quiz regarding welfare schemes implemented by different ministry of Government of India. They are : 

1. Planning in India Objective Questions Set 1

2. Planning in India Objective Questions Set 2

Planning Commission of India for APSC : What is NITI Aayog : Evolution of Indian Planning for APSC

Here is the complete detail of Planning Commission of India for APSC. Check What is NITI Aayog : Evolution of Indian Planning for APSC, SSC, TET, PNRD, DHS, APDCL, Assam Police, Grade III and Grade IV Exam in order to answer the questions :

PLANNING in India derives its objectives and social premises from the Directive Principles of State Policy enshrined in the Constitution. Public and private sectors are viewed as complementary. The private sector covers, besides organised industry, small-scale industries, agriculture, trade and housing, construction and related areas. Individual efforts and private initiatives are considered necessary and desirable in the national endeavour for development with optimum voluntary cooperation. 

NITI Aayog 

The National Institution for Transforming India (NITI Aayog) came into existence in 2015 replacing the Planning Commission which was established in 1950. The NITI Aayog is the successor to the Planning Commission. The new institution was envisaged to be a catalyst to the developmental process, nurturing an overall enabling environment – through a holistic approach to development – going beyond the limited sphere of the public sector and Government of India. 

This is built on the foundation of an empowered role of states as equal partners in national development; operationalising the principle of cooperative federalism; a knowledge hub of internal as well as external resources; serving as repository of good governance best practices, and a think tank offering domain knowledge as well as strategic expertise to all levels of government; a collaborative platform facilitating implementation; by monitoring progress, plugging gaps and bringing together the various ministries at the centre and in states, in the joint pursuit of developmental goals. 

The National Institution for Transforming India or NITI Aayog was created to serve as the think tank of the Government of India. The Prime Minister of India serves as the Chairperson of the institution. The institution plays a leadership role in policymaking in the central government; works closely with state governments; serves as a knowledge hub; and monitors progress in the implementation of policies and programmes of the Government of India. 

The institution provides the central and state governments with relevant strategic and technical advice across the spectrum on key policy elements. These include: matters of national and international importance on the economic front; dissemination of best practices from within the country and from other nations; and the infusion of new policy ideas and specific issue-based support. 

Through consultative and other mechanisms, it endeavours to inform of the best practices developed in one or more states or in other parts of the world to all states for possible adoption. It fosters cooperative federalism through structured support and policy guidance to the states on a continuous basis. 

The institution designs strategic and long-term policy and programme frameworks and initiatives and monitors their progress and their efficacy regularly. It uses the lessons learnt from monitoring and feedback to make innovative improvements, including necessary mid-course corrections. 

Also, NITI Aayog actively monitors and evaluates the implementation of programmes and initiatives, including the identification of the needed resources so as to strengthen the prospects of success of the latter. 

The Aayog publishes policy research papers on contemporary issues, brings out books on best practices, prepares model laws to help states reform their policies and organises workshops and conferences. For providing directional and policy inputs, it serves as a repository of research on good governance and helps disseminate this research to stakeholders. 

Composition of NITI Aayog

The composition of the NITI Aayog is as follows: Prime Minister of India is the Chairperson. The Governing Council comprises the Chief Ministers of all the states, Chief Ministers of union territories with legislatures, viz., Delhi and Puducherry and Lt. Governors of other union territories. Experts, specialists and practitioners with relevant domain knowledge as special invitees are nominated by the Prime Minister. 

The full-time organisational framework consists of, in addition to the Prime Minister as Chairperson, a Vice-Chairperson that is appointed by the Prime Minister. Full-time and part-time members are maximum of 2, from leading universities, research organisations and other relevant institutions in an ex-officio capacity. Part-time members are on a rotational basis. Ex-officio members are maximum of 4 members of the Union Council of Ministers who are nominated by the Prime Minister. 

Chief Executive Officer is appointed by the Prime Minister for a fixed tenure, in the rank of Secretary to the Government of India/Secretariat, as deemed necessary. 

Planning Commission (1950) 

The Planning Commission was set up in March 1950, in pursuance of declared objectives of the government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. It was charged with the responsibility of making assessment of all resources of the country augmenting deficient resources, formulating plan for the most effective and balanced utilisation of resources and determining priorities. Jawaharlal Nehru was the first chairman of the Planning Commission. 

First Plan (1951-56)

Keeping in view the large-scale import of foodgrains in 1951 and inflationary pressures on the economy, the First Plan (1951-56) accorded the highest priority to agriculture including irrigation and power projects as the main aim first five year plan is rapid development of agriculture. About 44.6 per cent of the total outlay of ₹ 2,069 crore in the public sector (later raised to ₹ 2,378 crore) was allocated for this purpose. The Plan aimed at increasing the rate of investment from 5 to about 7 per cent of the national income. 

Second Plan (1956-61)

The Second Five-Year Plan (1956-61) sought to promote a pattern of development, which would ultimately lead to the establishment of a socialistic pattern of society in India. Its main aims were: (i) an increase of 25 per cent in the national income; (ii) rapid industrialisation with particular emphasis on the development of basic and heavy industries; (iii) large expansion of employment opportunities; and (iv) reduction of inequalities in income and wealth and a more even distribution of economic power. The Plan aimed at increasing the rate of investment from about 7 per cent of the national income to 11 per cent by 1960-61. It laid emphasis on industrialisation, increased production of iron and steel, heavy chemicals including nitrogenous fertilisers and development of heavy engineering and machine building industry. 

Third Plan (1961-66)

The Third Plan (1961-66) was aimed at securing a marked advance towards self-sustaining growth. 

Its immediate objectives were to: 

(i) secure an increase in the national income of over 5 per cent per annum and at the same time ensure a pattern of investment which could sustain this rate of growth in the subsequent Plan periods; 

(ii) achieve self-sufficiency in foodgrains and increase agricultural production to meet the requirements of industry and exports; 

(iii) expand basic industries like steel, chemicals, fuel and power and establish machine building capacity so that the requirements of further industrialisation could be met within a period of about 10 years mainly from the country’s own resources; 

(iv) fully utilise the manpower resources of the country and ensure a substantial expansion in employment opportunities; and 

(v) establish progressively greater equality of opportunity and bring about reduction in disparities of income and wealth and a more even distribution of economic power. 

The Plan aimed at increasing the national income by about 30 per cent from ₹ 14,500 crore in 1960-61 to about₹ 19,000 crore by 1965-66 (at 1960-61 prices) and per capita income by about 17 per cent, from 330 to 386, over the same period.

Fourth Plan (1969-74)

The Fourth Plan (1969-74) aimed at accelerating the tempo of development of reducing fluctuations in agricultural production as well as the impact of uncertainties of foreign aid. It sought to raise the standard of living through programmes designed to promote equality and social justice. The Plan laid particular emphasis on improving the conditions of the less privileged and weaker sections especially through provision of employment and education. 

Efforts were directed towards reduction of concentration of wealth, income and economic power to promote equity. The Plan aimed at increasing the net domestic product (at 1968-69 factor cost) from ₹ 29,071 crore in 1969-70 to ₹ 38,306 crore in 1973-74. The average annual compound rate of growth envisaged was 5.7 per cent. 

Fifth Plan (1974-79)

The Fifth Plan (1974-79) was formulated against the backdrop of severe inflationary pressures. The major objectives of the plan were to achieve self-reliance and adopt measures for raising the consumption standard of people living below the poverty line. This Plan also gave high priority to bring inflation under control and to achieve stability in the economic situation. 

It targeted an annual growth rate of 5.5 per cent in the national income. Four Annual Plans pertaining to the Fifth Plan period were completed. It was subsequently decided to end the Fifth Plan period with the close of the Annual Plan 1978-79.

Sixth Plan (1980-85)

Removal of poverty was the foremost objective of the Sixth Plan (1980-85). The strategy adopted was to move simultaneously towards strengthening the infrastructure for both agriculture and industry. Stress was laid on tackling inter-related problems through a systematic approach with greater management, efficiency and intensive monitoring in all sectors and active involvement of people in formulating specific schemes of development at the local level and securing their speedy and effective implementation. 

The actual expenditure in the Sixth Plan stood at ₹ 1,09,291.7 crore (current price) as against the envisaged total public sector outlay of ₹ 97,500 crore (1979-80 prices) accounting for a 12 per cent increase in nominal terms. The average annual growth rate targeted for the Plan was 5.2 per cent. 

Seventh Plan (1985-90)

The Seventh Plan (1985-90) emphasised policies and programmes, which aimed at rapid growth in foodgrain production, increased employment opportunities and productivity within the framework of basic tenets of planning, namely, growth, modernisation, self-reliance and social justice. Foodgrain production during the Seventh Plan grew by 3.23 per cent as compared to a long-term growth rate of 2.68 per cent between 1967-68 and 198889, and the growth rate of 2.55 per cent in the eighties, due to overall favourable weather conditions, implementation of various thrust programmes and concerted efforts of the government and the farmers. 

To reduce unemployment and consequently, the incidence of poverty, special programmes like Jawahar Rozgar Yojana were launched in addition to the existing programmes. Due recognition was accorded to the role small-scale and food processing industries could play in this regard. 

The total expenditure during the entire Seventh Plan stood at ₹ 2,18,729.62 crore (current prices) as against the envisaged total public sector outlay of ₹ 1,80,000 crore, resulting in a 21.52 per cent increase in nominal terms. During this Plan period, the Gross Domestic Product (GDP) grew at an average rate of 5.8 per cent exceeding the targeted growth rate by 0.8 per cent.

Eighth Plan (1992-97)

The Eighth Five-Year Plan (1992-97) was launched immediately after the initiation of structural adjustment policies and macro stabilisation policies, which were necessitated by the worsening Balance of Payments position and the position of inflation during 1990-91. The various structural adjustment policies were introduced gradually so that the economy could be pushed to a higher growth path and improve its strength and thus prevent a crisis in Balance of Payments and inflation in the future. 

The Eighth Plan took note of some of these policy changes, which were to come about due to these reforms. The Plan aimed at an average annual growth rate of 5.6 per cent and an average industrial growth rate of about 7.5 per cent. These growth targets were planned to be achieved with relative price stability and substantial improvement in the country’s Balance of Payments. 

Some of the salient features of economic performance during the Eighth Five-Year Plan indicate, among other things: 

(a) a faster economic growth; 

(b) a faster growth of the manufacturing sector and agriculture and allied sectors; and 

(c) significant growth rates in exports and imports, improvement in trade and current account deficit and a significant reduction in the central government’s fiscal deficit. 

However, a shortfall in expenditure in the central sector due to inadequate mobilisation of internal and extra budgetary resources by the PSUs and various departments was witnessed. In the states sector, there was a lack of mobilisation of adequate resources due to deterioration in the balance of current revenues; erosion in the contribution of state electricity boards and state road transport corporations; negative opening balance; mounting non-Plan expenditure; and shortfalls in the collection of small savings, etc. 

The total expenditure during the entire Eighth Plan stood at ₹ 4,95,669 crore by taking 1996-97 (RE) as actual at current prices as against envisaged total public sector outlay of ₹ 4,34,100 crore (1991-92 prices), resulting in a 14.2 per cent increase in nominal terms. 

The Eighth Plan envisaged an annual average growth rate of 5.6 per cent. Against this, an average annual growth rate of 6.8 per cent was achieved during this plan period. 

Ninth Plan (1997-2002)

The Ninth Plan (1997-2002) was launched in the 50th year of India’s Independence. The Plan aimed at achieving a targeted GDP growth rate of 7 per cent per annum and there was emphasis on the seven identified Basic Minimum Services (BMS) with additional Central Assistance earmarked for these services with a view to obtain a complete coverage of the population in a time-bound manner. 

These included provision of safe drinking water; availability of primary health service facilities; universalisation of primary education; public housing assistance to shelterless poor families; nutritional support to children; connectivity of all villages and habitations; and streamlining of the public distribution system with a focus on the poor. 

The Plan also aimed at pursuing a policy of fiscal consolidation, whereby the focus was on sharp reduction in the revenue deficit of the government, including the centre, states and PSUs through a combination of improved revenue collections and control of inessential expenditures, particularly with regard to subsidies and through recovery of user charges and decentralisation of planning and implementation through greater reliance on states and Panchayati Raj Institutions. 

The specific objectives of the Ninth Plan included: 

(i) priority to agriculture and rural development with a view to generate adequate productive employment and eradication of poverty; 

(ii) accelerating the growth rate of the economy with stable prices; 

(iii) ensuring food and nutritional security for all, particularly the vulnerable sections of society; 

(iv) providing the basic minimum services of safe drinking water, primary healthcare facilities, universal primary education, shelter, and connectivity to all in a time-bound manner; 

(v) containing the growth rate of population;

(vi) ensuring mobilisation and participation of people at all levels; 

(vii) empowerment of women and socially disadvantaged groups such as Scheduled Castes, Scheduled Tribes and Other Backward Classes and minorities as agents of socio-economic change and development; 

(viii) promoting and developing people’s participatory institutions like Panchayati Raj Institutions, cooperatives and self-help groups; and 

(ix) strengthening efforts to build self-reliance. 

The Ninth Plan envisaged an average target growth rate of 6.5 per cent per annum in GDP as against the growth rate of 7 per cent approved earlier in the Approach Paper. 

The scaling down of the target was necessitated by the changes in the national as well as global economic situation in the first two years of the Ninth Plan. Against this, the achievement in the growth-rate on an average was to be 5.5 per cent per annum. 

Tenth Plan (2002-07)

The Tenth Five-Year Plan (2002-07) was approved by the National Development Council (NDC) in December 2002. The Plan further developed the NDC mandate objectives, of doubling the per capita income in ten years and achieving a growth rate of 8 per cent of GDP per annum. 

Since economic growth was not the only objective, the Plan also aimed at harnessing the benefits of growth to improve the quality of life of the people by setting of the following key targets: reduction in the poverty ratio from 26 per cent to 21 per cent, by 2007; reduction in decadal population growth from 21.3 per cent in 1991-2001 to 16.2 per cent in 2001-11; growth in gainful employment, at least, to keep pace with addition to the labour force; all children to be in school by 2003 and all children to complete five years of schooling by 2007; reducing gender gaps in literacy and wage rates by 50 per cent; increase in literacy rate from 65 per cent in 1999-2000 to 75 per cent in 2007; providing potable drinking water to all villages; increase in forest/tree cover from 19 per cent in 1999 2000 to 25 per cent in 2007; and cleaning of major polluted river stretches. 

The Tenth Plan had a number of new features :  

Firstly, the Plan recognised the rapid growth in the labour force. At current rate of growth and labour intensity in production, India faced the possibility of rising unemployment, which could lead to social unrest. 

The Tenth Plan therefore aimed at creating 50 million job opportunities during the period, by placing special emphasis on employment intensive sectors of agriculture, irrigation, agro-forestry, small and medium enterprises, information and communication technology and other services. 

Secondly, the Plan addressed the issue of poverty and the unacceptably low levels of social indicators. Although these have been the objectives in earlier Plans, in the Tenth Plan there were specific monitorable targets, which needed to be attained along with the growth target. 

The Incremental Capital Output Ratio (ICOR) of the economy was expected to come down to about 3.6 as against 4.5 during the Ninth Plan. This decline in ICOR was achieved mainly through better utilisation of existing capacities and suitable sectorial allocation of capital and its efficient utilisation. 

The growth target, therefore, required an investment rate of 28.4 per cent of GDP. This requirement was to be met from domestic savings of 26.8 per cent of GDP and external savings of 1.6 per cent. The bulk of the additional domestic savings had to come from reduction in government dissaving from -4.5 (2001-02) to -0.5 per cent (2006-07) of GDP. 

The average growth rate in the last four years of the Tenth Plan (2003-04 to 2006-07) was little over 8 per cent, making the growth rate 7.7 per cent for the entire Tenth Plan period. Though this was below the target of 8 per cent, it is the highest growth rate achieved in any Plan period. 

Eleventh Plan (2007-12)

The Eleventh Five-Year Plan (2007-12) provided a comprehensive strategy for inclusive development, building on the growing strength of the economy, while also addressing weaknesses that had surfaced. It set a target for 9 per cent growth in the five-year period with acceleration during the period to reach 10 per cent by the end of the Plan.

Twelfth Plan (2012 to 2017)

The Twelfth Plan fully recognised that the objective of development is broad-based improvement in the economic and social conditions of our people. However, rapid growth of GDP is an essential requirement for achieving this objective. 

The Approach Paper to the Twelfth Plan, had set a target of 9 per cent average growth of GDP over the Plan period (2012 to 2017). That was before the Euro-zone crisis in that year triggered a sharp downturn in global economic prospects, and also before the extent of the slowdown in the domestic economy was known. 

Twelfth Plan envisaged that the current slowdown in GDP growth can be reversed through strong corrective action, including especially an expansion in investment with a corresponding increase in savings to keep inflationary pressures under control. 

The Twelfth Five Year Plan was the last of the Five-Year Plans. With an increasingly open and liberalised economy and given the new realities of the global economy, a need was felt to rethink the tools and approaches to conceptualise the development process. 

In May 2016, the Prime Minister’s Office advised the NITI Aayog to prepare a Fifteen Year Vision, Seven Year Strategy and Three Year Action Agenda. The Vision, Strategy and Action Agenda framework allows for better alignment of the development strategy with the evolving reality of the country.

Must visit : GK Questions and Answers on NITI Aayog for APSC Prelims

Evolution of Indian Planning for UPSC Civil Services Preparation

Planning Commission of India and Evolution of Indian Planning is one of the most important topic of Indian Polity for competitive exam perspective. It is one of the most important areas of preparation for most government job exams including the UPSC Civil Services Exam. Every year 2-3 questions are asked from Planning Commission. This makes it an important topic for UPSC preparation.

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