A PPT on Planning and Development of India through Five Year Plans (8th FYP)

1. THE EIGHTH FIVE
YEAR PLAN
Abby Varghese
B.Sc. Geography, Tourism & Travel Management
Madras Christian College

2. What are Five Year Plan (FYP)?
◦ Five-Year Plans (FYPs) are centralized and integrated national economic programs. Joseph
Stalin implemented the first FYP in the Soviet Union in the late 1920s. Most communist states
and several capitalist countries subsequently have adopted them. China and India both continue
to use FYPs, although China renamed its Eleventh FYP, from 2006 to 2010, a guideline (Guihua),
rather than a plan (Jihua), to signify the central government’s more hands-off approach to
development. India launched its First FYP in 1951, immediately after independence under
socialist influence of first Prime Minister Jawaharlal Nehru.
◦ The First Five-Year Plan was one of the most important because it had a great role in the
launching of Indian development after the Independence. Thus, it strongly supported agriculture
production and it also launched the industrialization of the country.

3. Who plans these FYP?
◦ Since 1947, the Indian economy has been premised on the concept of planning. This has been
carried through the Five-Year Plans, developed, executed, and monitored by the Planning
Commission. With the Prime Minister as the ex-officio Chairman, the commission has a
nominated Deputy Chairman, who holds the rank of a Cabinet Minister.

4. Advantages of FYP
◦ Centralized Planning
◦ Focusing on weaker sections of the economy.
◦ Special emphasis on region aiming to bring equality in terms of development.
◦ Better allocation of public resources

5. The situation of the Nation during the
Eighth FYP
◦ 1989–91 was a period of economic & Political instability in India and hence no five-year plan
was implemented.
◦ Unemployment and under employment.
◦ Indian intervention in the Sri Lankan Civil War
◦ Rajiv Gandhi Assassination
◦ Demolition of Babri Masjid
◦ Social Stir caused by Mandal Commission
◦ Insurgency in Jammu and Kashmir
◦ In 1991, India faced a crisis in foreign exchange (forex) reserves, left with reserves of only
about US$1 billion.

6. What was the Eighth FYP & Why was it
so significant for Modern India?
◦ Magic of P.V Narasimha Rao (the 10th PM) led one of the most important administrations in
India's modern history, overseeing a major economic transformation and several incidents
affecting national security.
◦ At that time Dr. Manmohan Singh (former Prime Minister of India) launched India's free market
reforms that brought the nearly bankrupt nation back from the edge. It was the beginning
of privatization and liberalization in India.
◦ Together it was known as the “Rao and Manmohan model of Economic Development”
◦ India became a member of the World Trade Organization on 1 January 1995.

7. Aims of the Eighth FYP
◦ Modernization of industries was a major highlight of the Eighth Plan.
◦ Controlling population growth
◦ Poverty reduction
◦ Employment generation
◦ Strengthening the infrastructure
◦ Institutional building (Empowering of Panchayati Raj through the 74th Amendment Act of 1992)
◦ Tourism management
◦ Human resource development
◦ Decentralization
◦ Energy was given priority with 26.6% of the outlay
◦ The Eighth Plan proposed a growth rate of 5.6% per annum on an average during the plan period.

8. Effectiveness of Eighth FYP
◦ The average rate of growth of the economy rose from 6 per cent per annum in the seventh plan
(1985-90) to 6.8 percent in the Eighth Plan (1992-97). Growth averaged a high of 7.5 per cent per
annum in the last three years of the Eighth Plan (1994-95 to 1996-97).
◦ The Agricultural Sector registered an annual growth rate of about 3.9 per cent during the Eighth
plan period.
◦ The Industrial production increased at the rate of 8.6 per cent per annum.
◦ Employment generation and Antipoverty programs have started showing positive results.

9. Masterminds of 8th FYP
◦ P. V. Narasimha Rao, Chairman
◦ Pranab Mukherjee, Deputy Chairman
◦ Manmohan Singh, Member
◦ Sharad Pawar, Member
◦ Balram Jakhar, Member
◦ H.R. Bhardwaj, Member
◦ Chitra Naik, Member
◦ D. Swaminadhan, Member
◦ V. Krishnamurthy, Member
◦ C. Rangarajan, Member
◦ J. S. Bajaj, Member
◦ Jayant Patil, Member
◦ S. Z. Qasim, Member
◦ N. K. Sengupta, Secretary

10. Present FYP
12th Five Year Plan of the Government of India (2012–17) is under drafting which aims at one
direction will help in doing so the growth rate at 8%.