The Planning Commission of India - Function, Member, Five year plans, Dissolution

Introduction:- In this article we learn about Planning Commission of India. Their function, member, five year plans and dissolution of Planning Commision.

Planning Commission of India 

The Planning Commission of India was set up on 15 Mar 1950 under the chairmanship of the India's first prime minister Pandit JL Nehru. It was a non cinstitutional body or extra - constitutional and non - statutory body. The Planning Commission was an importance feature of governance in India, to make an assessment of material, capital and human resources of the country and make a plan for social and economic development.

Functions of Planning Commission

The most important functions of Planning Commission are given under.

• Assessment of meterial, capital and human resourses of the country.

• Formulation of plan for the most effective and balanced utilization of the country's resources.

• To determine the various stages of planning and to propose the allocation of the resources on a priority basis. 

• To  evalute from time to time the progress achieved in every stage of the plan also suggest remedial mesaures.

• The formation of eachfive year plans starts from the Planning Commission only. It prepares a draft memorandum of the plan, in which all the policies are laid down.  Thereafter, in this draft is sent to the National Development Council.

• To give the final shape to the plan. Final clearance to planning is given by National Development Council (NDC).

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Member of Planning Commission

The Prime Minister is the Chairman of the Planning Commission, which works under the overall guidance of the National Development Council. The Deputy Chairman and the full time Members of the Commission, as a composite body, provide advice and guidance to the subject Divisions for the formulation of Five Year Plans, Annual Plans, State Plans, Monitoring Plan Programmes, Projects and Schemes.

Five year Plans of Planning Commission

1. First Five Year Plan:

I. It was made for the duration of 1951 to 1956.

II. It was based on the Harrod-Domar model.

III. Its main focus was on the agricultural development of the country.

IV. This plan was successful and achieved growth rate of 3.6% (more than its target)

2. Second Five Year Plan:

I. It was made for the duration of 1956 to 1961.

II. It was based on the P.C. Mahalanobis Model.

III. Its main focus was on the industrial development of the country.

IV. This plan was successful and achieved growth rate of 4.1%

3. Third Five Year Plan:

I. It was made for the duration of 1961 to 1966.

II. This plan is called ‘Gadgil Yojna’ also.

III. The main target of this plan was to make the economy independent and to reach self active position of take off.

IV. Due to china war, this plan could not achieve its growth target of 5.6%

4. Plan Holiday:

I. The duration of plan holiday was from 1966 to 1969.

II. The main reason behind the plan holiday was the Indo-Pakistan war & failure of third plan.

III. During this plan annual plans were made and equal priority was given to agriculture its allied sectors and the industry sector.

5. Fourth Five Year Plan:

I. Its duration was from 1969 to 1974.

II. There were two main objective of this plan i.e. growth with stability and progressive achievement of self reliance.

III. During this plan the slogan of “Garibi Hatao” is given during the 1971 elections by Indira Gandhi.

IV. This plan failed and could achieve growth rate of 3.3% only against the target of 5.7%.

6. Fifth Five Year Plan:

I. Its duration was 1974 to 1979.

II. In this plan top priority was given to agriculture next came to industry and mines.

III. Overall this plan was successful which achieved the growth of 4.8% against the target of 4.4%.

IV. The draft of this plan was prepared and launched by the D.P. Dhar. This plan was terminated in 1978.

7. Rolling Plan: 

This plan was started with an annual plan for 1978-79 and as a continuation of the terminated fifth year plan.

8. Sixth Five Year Plan:

I. Its duration was from 1980 to 1985.

II. The basic objective of this plan was poverty eradication and technological self reliance.

III. It was based on investment yojna, infrastructural changing and trend to growth model.

IV. Its growth target was 5.2% but it achieved 5.7%.

9. Seventh Five Year Plan:

I. Its duration was from 1985 to 1990.

II. Objectives of this plan include the establishment of the self sufficient economy, opportunities for productive employment.

III. For the first time the private sector got the priority over public sector.

IV. Its growth target was 5.0% but it achieved 6.0%.

Annual Plans:

 Eighth five Plan could not take place due to volatile political situation at the centre. So two annual programmes are formed in 1990-91& 1991-92.

10.  Eighth Five Year Plan:

I. Its duration was from 1992 to 1997.

II. In this plan the top priority was given to development of the human resources i.e. employment, education, and public health.

III. Duing this plan Narasimha Rao Govt. launched New Economic Policy of India.

IV. This plan was successful and got annual growth rate of 6.8% against the target of 5.6%.

11. Ninth Five Year Plan:

I. Its duration was from 1997 to 2002.

II. The main focus of this plan was “growth with justice and equity”.

III. It was launched in the 50th year of independence of India.

IV. This plan failed to achieve the growth target of 7% and grow only at the rate of 5.6%.

12. Tenth Five Year Plan:

I. Its duration was from 2002 to 2007.

II. This plan aims to double the per capita income of India in the next 10 years.

III. It aims to reduce the poverty ratio 15% by 2012.

IV.  Its growth target was 8.0% but it achieved only 7.2%.

13. Eleventh Five Year Plan:

I. Its duration was from 2007 to 2012.

II. It was prepared by the C. Rangarajan.

III. Its main theme was “faster and more inclusive growth”

IV. Its growth rate target was 8.1% but it achieved only 7.9%

14.  Twelfth Five Year Plan:

I. Its duration is from 2012 to 2017.

II. Its main theme is “Faster, More Inclusive and sustainable growth.

III. Its growth rate target is 8%.IV. It is the current five year plan of India.

Dissoulation of Planning Commission

In his first independence day speech in 2014, Prime Minister Narendra Modi announced his intention to dissolve the Planning Commission. It has since been replaced by a new institution named NITI AYOG.