INDIAN ECONOMY FIVE-YEAR PLAN The public sector had an outlay of 4,34.100 crore- 3,61,000 crore for investment and 7 73,100 crore for current outlay. The outlay for Central Sector was 2.47,865 crore, States 1,79,985 crore, and Union Territories 6,250 crore


• Generation of adequate employment to achieve near-

full employment by the turn of the century . Containment of population growth through active people’s cooperation and an effective scheme of

incentives and disincentives.

Universalisation of illiteracy among the people in the age-group of 15 to 35 years

Provision of safe drinking water and primary healthcare facilities, including immunization. accessible to all the villages & entire population

and complete elimination of scavenging Growth and diversification of agriculture to achieve self-sufficiency in food and generate surpluses for exports

Strengthening infrastructure energy, transport, communication, irrigation) in order to support growth process on a sustainable basis

Achievements Average growth rate achieved in this plan in terms of

OP at market prices was 6.8 per cent against targe

.6 per cent. This was supported by an average

estment of 25 per cent of GDP; thereby yielding a

OR of 3.7, which was significantly less than th



This plan envisages an aggregate investment 78,59,200 crore at 1996-97 prices-74,89,361 crore Central sector and 3,69,839 crore in States sector Share of the Centre’s plan and that of the State including Union Territories would be 57 per cent an 43 per cent respectively. The private sector investment

185,50,000 crore.


• Priority to agriculture and rural development with a view to generating adequate productive employment and eradication of poverty

• Accelerating growth rate of economy with stat prices.

•Ensuring food and nutritional security for a particularly vulnerable sections of the society

•Providing basic minimum services of safe drink water, primary healthcare facilities, universe primary education, shelter and connectivity to in a time-bound manner Containing growth rate of population

•Ensuring environmental sustainability development process through social mobilization and participation of people at all levels


Empowerment of women and socially disadvantage genus groups such as scheduled castes, Scheduled tribes Other Backward classes and Minorities as agents of social economic change and development

Promoting and developing people’s participatory institutions like Panchayati Raj Institutions, Cooperatives and Self-helping groups

Strengthening efforts to build self-reliance. Hate of Growth

This plan aims at the growth rate of 6,5 per cent per annum of the Gross Domestic Product (GDP It assumes Incremental Capital Output Ratin (COR) of 43. Saving rate of 26.1 per cent, Current Account Deficit of 2.1 per cent and average rate of investment of 28.2 per cent of GDP at market price. This growth is to be achieved through 39 growth rate in agriculture. 8.2 per cent in industry and 11.8 per cent in experts. Thus, growth rate of GDP is in line with 6.8 per cent achieved during Eighth plan.



To increase production of food grains from 199.32 million tonnes in 1996-97 to 234.00 million tones in 2001-2002

To bring 15 million hectares of more land under Irrigation To increase production of finished Steel from 27.38

million tonnes to 38.01 million tonnes To increase exports by 11.8 per cent.

To create 50 million additional joba

• Universal primary education by the end of Ninth plan

• To decrease poverty ratio from 29 18 per cent in 1996- 97 to 17.98 per cent in 2001-02 To decrease growth rate of population from 1.85 per cent in 1996-97 to 1.57 per cent in 2001-02

• Crude Birth Rate (CBR) of 23 per thousand. Infant Mortality Rate (IMR) of 50 per thousand, Couple Protection Rate (CPR) of 60% and Total Fertility Rate (TFR) of 2.6 in 2001-02


National Development Council (NDC) unanimously approved the Approach Paper to the Tenth Five-Year Plan (2002-07) on Sept. 1, 2001. It seeks to achieve 8. percent Gross Domestic Product (GDP) growth rate during the plan period in order to double per capita income in next ten years. Plan is scheduled to be launched on April 1, 2002

Approach Paper also proposes following Stepping up disinvestment target to 16,000 crore annually • Raising investment ratio to 32 per cent from the present 24 per cent

Increasing tax GDP ratio to 11.7 percent from the current 9.2 per cent, reducing poverty ratio to 20 per cent

• Reduction in infant and maternal mortality rates

• Universal enrolment of children in schools

• Raising employment growth rate

• Reducing gender gap in literacy and wage rates

• To provide more villages access to potable drinking

water, cleaning polluted rivers, increase in forest

cover • Reduction in population growth rate.

Panchayati Raj

It aims at taking democracy to the village level by delegating substance of power to people’s organisation. It was main recommendation of the Balwant Rai Mehta Committee in order to popularise Community Development Projects and make them more effective. It was inaugurated at Nagpur in Rajasthan on October

2, 1959.


.It is a three-tier system with Zila Parishad at district level Panchayat Samiti at block level

Gram Panchayat at village level. • Members of the panchayats are directly elected by

the people •Panchayat Samitis consist of

Presidents of the Panchayats Few co-opted.

members to represent Scheduled Castes and women. • Members of the Zila Parished consist of

Presidents of Panchayat Samitis MLA’s elected from that District.

• Functions of the Panchayat Samitis (i) Elementary education

(i) Public health

Minor irrigation projects, etc.

Functions of the Zila Parishad

(1) To co-ordinate plan programmes of Panchayat Samitis. (i) To supervise their functions.

• Panchayati Raj will devote itself to the following measures!

(i) To increase agriculture production

(i) Development of rural industry (in) Full utilisation of local manpower and resources

(iv) Facilities for education and adult literacy. Constitution Act (73rd Amendment)

In order to activate Panchayati Raj institutions more and to confer on them statutory status, Parliament passed the Constitution (73rd Amendment) Act on Dec. 23, 1992.





constitution of Gram Sabha in villages constitution of three-tier Panchayats at the

village and other levels direct election of all seats in Panchayats of seats for Scheduled Castes and

• reservation

Scheduled Tribes reservation of one-third of the total seats at every level of the Panchayati Raj for women

. fixing of tenure of five years for Panchayats.

Present Position


. Panchayati Raj institutions are in existence almost in all States and Union Territories.


. Today, Gram Panchayats are involved for Identification of beneficiaries in Anti-Poverty

Programme (i) Integral Rural Development Programme (IRDP) Ober

(m) Execution of other Rural Development Programmed

New Industrial Policy

On July 24, 1991, Union Government announced in Parliament new Industrial Policy, brought major changes to liberalise Indian economy.



Industrial Policy Statement of 1991 is a policy designed

to achieve following objectives: • To attain technological dynamism and international



⚫ To maintain a sustained growth in productivity and



To accelerate industrial growth by removing

administrative controls inhibiting competition and

April 1969


Main features of Industrial Policy Delicensing: Industrial licensing has been

of self-reliance

abolished for all projects, except in 18 industries which are important for strategic or environmental reasons or which produce goods with high import content.

pment utritional level ta that


at the backdrop of

• Reservation for Public Sector: Areas reserved for the public sector have been narrowed down, and greater participation by private sector in core and basic industries has been permitted. Instead of 17 areas earlier reserved for public sector, only 8 areas are now reserved. These 8 areas are mainly those involving strategic and security. concerns.

tainment of selfe

ual growth in GD

For minimum

king water, medic

home sites for la

lectrification and

• Location Policy : Government clearance for the location of projects has been dispensed with, except in the case of 23 cities with a population of more than one million

for part 1


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