eco project2015

8/20/2019 Eco Project2015

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Dr. Ram Manohar Lohia National Law University,

Lucknow

2015-201

!"conomics!

#inal $ro%ect

"conomic Develo&ment in 'n(ia

)U*M'++"D + ! )U*'++"D * !

Dr. Mitali Tiwari Ashay Verma

Faculty of Economics Roll No. 31

Dr. RAM MANOHAR OH!A "ection A

NAT!ONA A# $N!VER"!T% &.A. &.'Hons.( "emester !


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'N+RDU+'N

!n)ia* a "outh Asian nation* is the se+enth,lar-est country y area* the secon),most /o/ulous country

with o+er 1.0 illion /eo/le* an) the most /o/ulous )emocracy in the worl). !n)ia oasts of an

immensely rich cultural herita-e inclu)in- numerous lan-ua-es* tra)itions an) /eo/le. The country

hol)s its uni2ueness in its )i+ersity an) hence has a)a/te) itself to international chan-es with /oise an)

comfort. #hile the economy has welcome) international com/anies to in+est in it with o/en arms since

lieralisation in 14s* !n)ians ha+e een /ru)ent an) /ro,acti+e in a)o/tin- -loal a//roach an) s5ills.

!n)ian +illa-ers /rou)ly ta5e u/ farmin-* a)+ance) a-riculture an) uni2ue han)icrafts as their /rofession

on one han) while mo)ern in)ustries an) /rofessional ser+ices sectors are comin- u/ in a i- way on the

other.

Research /uestions

• !s !n)ia really )e+elo/in-6

• How far !n)ia is away from )e+elo/e) economy6

%ective

The /ro7ect is asically )eals with the stu)y of economic )e+elo/ment in the )ifferent /hases an)

)ifferent sectors which is ta5in- /lace in !n)ian economy.

Research Metho(oloy

The stu)y of this /ro7ect in+ol+e )octrinal metho)olo-y. "tu)y of this /ro7ect will e )one throu-h oo5s* articles* 7ournals an) internet )ataase.


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+entative ha&terisation

!ntro)uction

A-ricultural )e+elo/ment

!n)ustrial )e+elo/ment "er+ice sector

!nfrastructure De+elo/ment in !n)ia

8o+ernment 9lans

:onclusion

Reference


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riculture Develo&ment

There is a +ital role of A-riculture sector in the /rocess of economic )e+elo/ment of less De+elo/e)

countries li5e !n)ia. &esi)es /ro+i)in- foo) to nation* a-riculture releases laour* /ro+i)es sa+in-*contriutes to mar5et of in)ustrial -oo)s an) earns forei-n e;chan-e.

A-ricultural )e+elo/ment is an inte-ral /art of o+erall economic )e+elo/ment. !n !n)ia* a-riculture was

the main source of national income an) occu/ation at the time of !n)e/en)ence. A-riculture an) allie)

acti+ities contriute) nearly 4 /ercent to !n)ia1 year of !n)e/en)ence* the share of

a-riculture in total national income )ecline) from 4 /ercent in 14 to 1? /ercent in 044=, 4?. &ut

e+en to)ay more than >4 /ercent of wor5force is en-a-e) in a-riculture. !n s/ite of this* it is also an

im/ortant feature of a-riculture that is to e note) that -rowth of other sectors an) o+erall economy

)e/en)s on the /erformance of a-riculture to a consi)erale e;tent. &ecause of these reasons a-riculture

continues to e the )ominant sector in !n)ian Economy.

"ince in)e/en)ence !n)ia has ma)e much /ro-ress in a-riculture. !n)ian a-riculture* which -rew at the

rate of aout 1 /ercent /er annum )urin- the fifty years efore !n)e/en)ence* has -rown at the rate of

aout 0.> /ercent /er annum in the /ost,!n)e/en)ence era. E;/ansion of area was the main source of

-rowth in the /erio) of fifties an) si;ties after that the contriution of increase) lan) area un)er

a-ricultural /ro)uction has )ecline) o+er time an) increase in /ro)ucti+ity ecame the main source of

-rowth in a-ricultural /ro)uction. Another im/ortant facet of /ro-ress in a-riculture is its success in

era)icatin- of its )e/en)ence on im/orte) foo) -rains. !n)ian a-riculture has /ro-resse) not only in

out/ut an) yiel) terms ut the structural chan-es ha+e also contriute). All these )e+elo/ments in !n)ian

a-riculture are contriute) y a series of ste/s initiate) y !n)ian 8o+ernment. an) reforms*

inau-uration of A-ricultural 9rice :ommission with o7ecti+e to ensure remunerati+e /rices to

/ro)ucers* new a-ricultural strate-y* in+estment in research an) e;tension ser+ices an) /ro+ision of

cre)it facilities are some of these ste/s.

9rior to the mi),1>4s !n)ia relie) on im/orts an) foo) ai) to meet )omestic re2uirements. Howe+er*

two years of se+ere )rou-ht in 1> an) 1>> con+ince) !n)ia to reform its a-ricultural /olicy* an) that


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!n)ia coul) not rely on forei-n ai) an) forei-n im/orts for foo) security. !n)ia a)o/te) si-nificant /olicy

reforms focuse) on the -oal of foo) -rain self,sufficiency. This ushere) in !n)ia@s 8reen Re+olution. !t

e-an with the )ecision to a)o/t su/erior yiel)in-* )isease resistant wheat +arieties in comination with

etter farmin- 5nowle)-e to im/ro+e /ro)ucti+ity. The /ro-rams inclu)e) un)er the new strate-y are

'1( the hi-h yiel)in- +arieties /ro-ram* '0( multi/le cro//in- /ro-ram* '3( inte-rate) )e+elo/ment of

)ry areas* 'B( /lant /rotection measures* '( increase) use of fertiliCers* an) '>( new irri-ation conce/t.

ricultural $olicy

!n this section* we try to trace out the /rinci/le -o+ernment /olicies for /romotin- a-ricultural

)e+elo/ment. For the o+erall )e+elo/ment of !n)ian a-riculture* many institutional an) infrastructural

chan-es ha+e een intro)uce) since !n)e/en)ence. &roa)ly* a-ricultural /olicy followe) )urin- this /erio) can e )istin-uishe) in four /hases first /hase consi)ere) from 1B= to mi) si;ties* secon) /hase

consi)ere) /erio) from mi),si;ties to 1?4* thir) /hase inclu)e) /erio) from 1?4 to 11* an) forth

/hase inclu)es/erio) from 110 onwar)s.

The first /hase of a-ricultural /olicy witnesse) tremen)ous a-rarian reforms* institutional chan-es*

)e+elo/ment of ma7or irri-ation /ro7ect an) stren-thens of coo/erati+e cre)it institution. The most

im/ortant contriution of lan) reforms was aolition of interme)iaries an) -i+in- lan) titles to the actual

culti+ators. This release) /ro)ucti+e forces an) the owner culti+ators /ut in their est to au-ment

/ro)uction on their hol)in-s. an) reforms were im/ortant in increasin- a-ricultural /ro)uction )urin-

this /hase. The :ommunity De+elo/ment 9ro-ramme* )ecentralise) /lannin- an) the !ntensi+e Area

De+elo/ment 9ro-rammes were also initiate) for re-eneratin- !n)ian a-riculture that ha) sta-nate)

)urin- the &ritish /erio). !n or)er to encoura-e the farmers to a)o/t etter technolo-y* incenti+e /rice

/olicy was a)o/te) in 1>B an) the A-ricultural 9rice :ommission was set u/ to a)+ice the 8o+ernment

on the fi;ation of su//ort /rices of a-ricultural cro/s. Des/ite the institutional chan-es an) )e+elo/ment

/ro-rammes intro)uce) y the 8o+ernment )urin- this /hase* !n)ia remaine) )e/en)ent u/on forei-n

countries for foo) to fee) the risin- /o/ulation.

The secon) /hase in !n)ian a-riculture starte) in mi) 1>4s with a)o/tion of new a-ricultural strate-y3.

The new a-ricultural strate-y relies on hi-h,yiel)in- +arieties of cro/s* multi/le cro//in-* the /ac5a-e

https://en.wikipedia.org/wiki/Green_Revolutionhttps://en.wikipedia.org/wiki/Green_Revolutionhttps://en.wikipedia.org/wiki/Green_Revolution


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a//roach* mo)ern farm /ractices an) s/rea) of irri-ation facilities. The i--est achie+ement of this

strate-y has een attainment of self sufficiency in foo)-rains. A-rarian reforms )urin- this /erio) too5

ac5 seat while research* e;tension* in/ut su//ly* cre)it* mar5etin-* /rice su//ort an) s/rea) of

technolo-y were the /rime concern of /olicy ma5ers 'Rao* 1>(. The ne;t /hase in !n)ian a-riculture

e-an in early 1?4s. This /erio) starte) witnessin- /rocess of )i+ersification which resulte) into fast

-rowth in non,foo)-rains out/ut li5e mil5* fishery* /oultry* +e-etales* fruits etc which accelerate)

-rowth in a-ricultural 8D9 )urin- the 1?4s ':han)* 0443(. There has een a consi)erale increase in

susi)ies an) su//ort to a-riculture sector )urin- this /erio) while /ulic sector s/en)in- in a-riculture

for infrastructure )e+elo/ment starte) showin- )ecline in real term ut in+estment y farmers 5e/t on

mo+in- on a risin- tren).

The fourth /hase of a-ricultural /olicy starte) after initiation of economic reform /rocess in 11.

Economic reforms /rocess in+ol+e) )ere-ulation* re)uce) -o+ernment /artici/ation in economic

acti+ities* an) lieraliCation. Althou-h there is no any )irect reforms for a-riculture ut the sector was

affecte) in)irectly y )e+aluation of e;chan-e rate* lieraliCation of e;ternal tra)e an) )is/rotection to

in)ustry. Durin- this /erio) o/enin- u/ of )omestic mar5et )ue to new international tra)e accor) an)

#TO was another chan-e that affecte) a-riculture. This raise) new challen-es amon- /olicyma5ers.

&ecause of this* a New A-ricultural 9olicy was launche) y !n)ian 8o+ernment in uly 0444. This aims

toattain out/ut -rowth rate of B /ercent /er annum in a-riculture sector ase) on efficient use of

resources. !t see5s to achie+e this o7ecti+e in a sustainale manner an) with e2uity. This was first time

when -o+ernment release) a national a-riculture /olicy. The /olicy )ocument )iscusses what ou-ht to

e )one in a-riculture ut the suse2uent ste/* how an) when /olicy -oals an) o7ecti+e woul) e

achie+e) is not )iscusse) ':han)* 0443(. Therefore* it is hi-hly )esirale to /re/are action /lans at oth

centre an) state le+el in 2uantity terms to im/lement the new /olicy a-en)a in a time oun) framewor5.

'n(ustrial Develo&ment

The /rocessin- of natural resources into more useful items is calle) manufacturin-. These manufacture)

-oo)s are finishe) /ro)ucts )eri+e) from the raw materials. These raw materials use) in manufacturin-

in)ustry may e either in their natural form such as cotton* wool* iron ore etc. or may e in the semi

/rocesse) form li5e cotton yarn* /i- iron etc. which can further e use) for ma5in- more useful -oo)s.


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Thus the finishe) /ro)uct of one in)ustry may ser+e as the raw material for another in)ustry. Economic

)e+elo/ment cannot e achie+e) y a country without )e+elo/in- its in)ustries. There is a )irect

relationshi/ etween the le+el of in)ustrial )e+elo/ment an) the economic /ros/erity of a country.

De+elo/e) countries li5e the $"A* a/an* Russia owe )ue to their /ros/erity to hi-hly )e+elo/e)

in)ustries. !n)ustrially less )e+elo/e) countries e;/ort their natural resources an) im/ort finishe) -oo)s

at hi-her /rices an) continue to remain economically ac5war).

!n !n)ia manufacturin- in)ustries contriute) aout 34 /er cent of the -ross )omestic /ro)uct. These

in)ustries /ro+i)e em/loyment to aout 0? million /eo/le. Thus in)ustries are a ma7or source of

national income an) em/loyment.

!n)ustiral )e+elo/ment in !n)ia can e )i+i)e) into two /hases. The 8o+ernment successi+ely increase)

its control o+er )ifferent economic sectors )urin- the first /hase '1B=,1?4(. !n the secon) /hase

'1?4,=( it too5 measures to lieralise the economy etween 1?4 an) 10. These measures were

somewhat a)hoc. After 10* the whole /rocess of lieraliCation ecame more focuse) an) ra)ically

)ifferent in nature.

After in)e/en)ence* systematic in)ustrial /lannin- un)er )ifferent fi+e year /lans hel/e) in estalishin-

a lar-e numer of hea+y an) me)ium in)ustries. The main thrust of the in)ustrial /olicy was to remo+e

re-ional imalances an) to intro)uce )i+ersification of in)ustries. !n)i-enous ca/ailities were

)e+elo/e) to achie+e self sufficiency. !t is )ue to these efforts that !n)ia has een ale to )e+elo/ in the

fiel) of in)ustry. To)ay* we e;/ort a lar-e numer of in)ustrial -oo)s to +arious countries.

+y&es o3 in(ustries

!n)ustries can e classifie) into )ifferent cate-ories on the asis* such as of sources of raw material*

ownershi/* functions* siCe of in)ustry an) wei-ht of raw material an) finishe) /ro)ucts. "ince !n)ia is

still an a-ricultural country* it has )e+elo/e) +arious a-ro,ase) in)ustries such as cotton te;tile* woolen

te;tile* 7ute te;tile an) su-ar in)ustry.

The 8o+ernment of !n)ia frame) /olicies which ha+e ma)e !n)ia self reliant in +arious sectors of

in)ustries. ieraliCation* -loaliCation an) /ri+atiCation ha+e hel/e) in rin-in- forei-n ca/ital an)

mo)ern technolo-y into the country. 9ri+ate enter/rise is ein- allowe) to enter into +arious core

sectors. This* has resulte) into the faster -rowth of in)ustrial sector.


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'n(ustrial )el3 Reliance

!n)ustrial self reliance means that the /eo/le of !n)ia estalish an) o/erate in)ustries with their own

technical 5nowle)-e finances an) usin- machines manufacture) in our own country without )e/en)in-

on others.

The 8o+t of !n)ia formulate) an in)ustrial /olicy in 1> with the o7ecti+es of increasin- in)ustrial

out/ut* -eneratin- em/loyment* )is/eresal of in)ustries* remo+in- re-ional imalances in the in)ustrial

)e+elo/ment an) the )e+elo/ment of +illa-e an) small scale in)ustries. Throu-h /lanne) )e+elo/ment

of !n)ustries* we now manufacture se+eral ty/es of in)ustrial -oo)s. A ma7or rea5throu-h has een

achie+e) in the /ro)uction of ca/ital -oo)s. !n)ia is now self reliant in the /ro)uction of hea+y

machines an) e2ui/ment use) in minin-* irri-ation* /ower /ro7ects* trans/ort an) communication. #e

use machines faricate) in !n)ia for cement* te;tile* iron an) steel an) su-ar in)ustries etc. 9ulic sector

has /laye) an im/ortant role in achie+in- in)ustrial self reliance. !ron an) steel* railway e2ui/ment*

/etroleum* coal an) fertiliCer in)ustries* ha+e een )e+elo/e) in this sector. These in)ustries were

estalishe) in in)ustrially ac5war) re-ions. Durin- the se+enth fi+e year /lan an em/hasis was lai) on

hi-h technolo-y* hi-h +alue a))ition an) 5nowle)-e ase) in)ustries li5e electronics* a)+ance) machine

tools an) telecommunications.

'M$+ # "NM' L'*"RL'4+'N

The /rocess of in)ustrialiCation in !n)ia can e )i+i)e) into two /arts efore an) after 10. Durin-

first forty years after in)e/en)ence the !n)ian economy ha) )i+ersifie) an) e;/an)e) +ery fast. &ut this

-rowth was characteriCe) y ri-i) controls an) re-ulations.

!n Au-ust 10* 8o+ernment of !n)ia too5 a ol) ste/ y chan-in- its economic /olicies from state

control to mar5et forces. A nee) was felt to -i+e more res/onsiility to /ri+ate ca/ital an) enter/rise*

oth )omestic as well as forei-n. !n re/onse to this* the new in)ustrial /olicy of lieraliCation*

/ri+atisation an) -loaliCation was a)o/te) in Au-ust 10. The imme)iate cause of this chan-es in


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economic /olicy was to ti)e o+er alance of /ayment crises ut ha+in- wi)e social* economic* /olitical

an) -eo-ra/hical im/lications.

ieraliCation means a re)uce) role for the 8o+ernment an) a -reater role for the mar5et or the lieral

attitu)e of the 8o+ernment for the estalishment an) runnin- of in)ustries. !t was toute) as a /anacea

for the ills of !n)ian economy. Howe+er* after 1 years of followin- the /ath of literaliCation* the results

are not that sweet. The -a/ etween the rich an) the /oor has increase). 9ro)uction of -oo)s of mass

consum/tion has not im/ro+e). Em/loyment o//ortunities ha+e not increase) at the )esire) rate. !n

/ri+atisation there will e transfer of the ownershi/ of /ulic enter/rises to /ri+ate ca/ital* o/enin- of

more in)ustrial areas to /ri+ate ca/ital an) enter/rise. The main aim of /ri+atisation is to ma5e use of

/ri+ately owne) resources for collecti+e welfare of the /eo/le.

)ervice )ector

The -rowin- share of the ser+ices sector in the -ross )omestic /ro)uct '8D9( of !n)ia in)icates the

im/ortance of the sector to the economy. The ser+ices sector accounte) for aout 34 /er cent of total

8D9 of !n)ia in 14sG its share in 8D9 increase) to 3? /er cent in the 1?4s* then to B3 /er cent in the

14s an) finally to aout >. /er cent in 0410‐13 '8O! 0413(. Thus* the ser+ices sector currently

accounts for more than half of !n)ia


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teachin-* cleanin-* sellin-* curin- an) entertainin- ha+e no /hysical form an) therefore are immaterial

or intan-ile.

!n)ia


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outsource its ser+ices to )e+elo/in- countries li5e !n)ia lea)in- to a rise in )eman) for ser+ices from the

)e+elo/in- mar5et '&ha-wati 1?B* 8or)an an) 8u/ta 0443 an) Hans)a 0441(. Hi-h -o+ernment

e;/en)iture on certain ser+ices li5e community* social an) /ersonal ser+ices has also le) to hi-h -rowth

of ser+ices 'Ansari 1(.

'n3rastructure Develo&ment in 'n(ia

!nfrastructure is the /rere2uisite for the )e+elo/ment of any economy. Trans/ort*

telecommunications* ener-y, water* health* housin-* an) e)ucational facilities ha+e ecome /art an)

/arcel of human e;istence. !t is )ifficult to ima-ine a mo)ern worl) without these facilities. These are

+ital to the househol) life as well as to the economic acti+ity. !nfrastructure /lays a crucial role in

/romotin- economic -rowth an) therey contriutes to the re)uction of economic )is/arity* /o+erty an)

)e/ri+ations in a country. 8reater access of the /oor to e)ucation an) health ser+ices* water an)

sanitation* roa) networ5 an) electricity is nee)e) to rin- e2uitale )e+elo/ment an) social

em/oswerment. !t is an im/ortant /re,con)ition for sustainale economic an) social )e+elo/ment.

!nfrastructural in+estments in trans/ort 'roa)s* railways* /orts an) ci+il a+iation(* /ower* irri-ation*

watershe)s* hy)roelectric wor5s* scientific research an) trainin-* mar5ets an) warehousin-*

communications an) informatics* e)ucation* health an) family welfare /lay a strate-ic ut in)irect role

in the )e+elo/ment /rocess* ut ma5es a si-nificant contriution towar)s -rowth y increasin- the factor /ro)ucti+ity of lan)* laour an) ca/ital in the /ro)uction /rocess* es/ecially safe )rin5in- water an)

sanitation* asic e)ucational facilities stron-ly influence to the 2uality of life of the /eo/le.

Roa(s

J!n)ia has one of the lar-est roa) networ5s in the worl)* a--re-atin- to 3.3B million 5m.

JThe country s roa) networ5 consists of E;/ressways* National Hi-hways* "tate Hi-hways*‟

Ma7or District Roa)s* Other District Roa)s an) Villa-e Roa)s.

JThe roa) networ5* as on Decemer 044=* com/rises >>*4 5m of National Hi-hways* 10?*444

5m of "tate Hi-hways* B=4*444 5m of Ma7or District Roa)s an) aout 0.> million 5m of other

District an) Rural Roa)s.


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J National Hi-hways com/rise only aout 0 /ercent of the total len-th of roa)s an) carry aout

B4 /ercent of the total traffic across the len-th an) rea)th of the country.

The National Hi-hways De+elo/ment 9ro7ect 'NHD9(* the lar-est hi-hway /ro7ect e+er

un)erta5en y the country* is ein- im/lemente) y the National Hi-hway Authority of !n)ia

'NHA!(.

J NHD9 9hase ! I !! en+isa-e B> lanin- of aout 1B*0= 5m of National Hi-hways* at a total

estimate) cost of Rs.>4 million 'at 044B /rices(.

JThese two /hases com/rise of 8ol)en Kua)rilateral '8K(* North,"outh an) East,#est

:orri)ors* 9ort :onnecti+ity an) other /ro7ects.

$orts

J!n)ia s coastline of =*1= 5m. is a))e) with 13 ma7or /orts an) 1?= non,ma7or /orts.‟

J Of the non,ma7or /orts* aroun) >4 are han)lin- traffic.

JThe total traffic carrie) y oth the ma7or an) minor /orts )urin- 044,4> was estimate) at

aroun) =4 million tonnes.

JThe 10 ma7or /orts carry aout 3Bth of the total traffic*

JThe annual a--re-ate car-o han)lin- ca/acity of ma7or /orts increase) from 3=. million

tonnes /er annum 'MT9A( in 044B,4 to B>.04 MT9A in 044,4>* with the a+era-e turnaroun)

time increasin- mar-inally from 3.B )ays to 3. )ays in 044,4>.

ir&orts

J11 international air/orts 11B )omestic air/orts

J04Lannual -rowth

J9assen-er traffic crosse) 144 million /assen-ers /.a.

J:ar-o traffic to -row at o+er 04L /.a. o+er the ne;t fi+e years , !noun) traffic also on rise )ue

to tra)e an) in+estment


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JMaintenance* Re/air an) O+erhaul 'MRO( -rowin- in a i- way

Railways

J!n)ia has one of the lar-est railway networ5s in the worl) '>3*444 route Ms networ5(

JAccounts for 34L of total frei-ht traffic

JTraffic +olumes set to )oule y 0410

JThe hi-h,)ensity networ5 connectin- the four metro/olitan cities of :hennai* Delhi*

Jol5ata an) Mumai* inclu)in- its )ia-onals* /o/ularly calle) the 8ol)en Kua)rilateral has -ot

saturate) at most of the locations.

J9otential for rollin- stoc5* locomoti+es* /assen-er coaches* trac5 e2ui/ment* si-nalin-

e2ui/ment

$ower

J"ince in)e/en)ence* -eneratin- ca/acity has increase) from 13>0 to o+er 144*444 M#

JHowe+er there are wi)es/rea) shorta-es of /ower in almost all /arts of the country.

J!na)e2uate inter,re-ional transmission lin5sG

J!na)e2uate an) a-ein- su,transmission I )istriution networ5 lea)in- to /ower cuts an) local

failuresfaultsG

Jar-e scale theft an) s5ewe) tariff structureG

J"low /ace of rural electrificationG

J!nefficient use of electricity y the en) consumer.

7overnment $lans


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9lannin- in !n)ia )ates ac5 to the 134s. E+en efore in)e/en)ence* the colonial -o+ernment ha)

estalishe) a /lannin- oar) that laste) from 1BB to 1B>. 9ri+ate in)ustrialists an) economists

/ulishe) three )e+elo/ment /lans in 1BB. !n)ia@s lea)ers a)o/te) the /rinci/le of formal economic

/lannin- soon after in)e/en)ence as an effecti+e way to inter+ene in the economy to foster -rowth an)

social 7ustice.

The 9lannin- :ommission was estalishe) in 14. Res/onsile only to the /rime minister* the

commission is in)e/en)ent of the cainet. The /rime minister is chair/erson of the commission* an) the

minister of state with in)e/en)ent char-e for /lannin- an) /ro-ram im/lementation ser+es as )e/uty

chair/erson.

The First Fi+e,%ear 9lan 'F% 11,( attem/te) to stimulate alance) economic )e+elo/ment while

correctin- imalances cause) y #orl) #ar !! an) /artition. A-riculture* inclu)in- /ro7ects that

comine) irri-ation an) /ower -eneration* recei+e) /riority. &y contrast* the "econ) Fi+e,%ear 9lan 'F%

1>,>4( em/hasiCe) in)ustrialiCation* /articularly asic* hea+y in)ustries in the /ulic sector* an)

im/ro+ement of the economic infrastructure. The /lan also stresse) social -oals* such as more e2ual

)istriution of income an) e;tension of the enefits of economic )e+elo/ment to the lar-e numer of

)isa)+anta-e) /eo/le. The Thir) Fi+e,%ear 9lan 'F% 1>1,>( aime) at a sustantial rise in national an)

/er ca/ita income while e;/an)in- the in)ustrial ase an) rectifyin- the ne-lect of a-riculture in the

/re+ious /lan. The thir) /lan calle) for national income to -row at a rate of more than /ercent a year.

Economic )ifficulties )isru/te) the /lannin- /rocess in the mi),1>4s. !n 1>0* when a rief war was

fou-ht with :hina on the Himalayan frontier. Mi)way throu-h the thir) /lan* it was clear that its -oals

coul) not e achie+e). Foo) /rices rose in 1>3* causin- riotin- an) lootin- of -rain warehouses in

1>B. #ar with 9a5istan in 1> shar/ly re)uce) the forei-n ai) a+ailale. "uccessi+e se+ere )rou-hts

in 1> an) 1>> further )isru/te) the economy an) /lannin-. Three annual /lans -ui)e) )e+elo/ment

etween F% 1>> an) F% 1>? while /lan /olicies an) strate-ies were ree+aluate). !mme)iate attention

centere) on increasin- a-ricultural -rowth* stimulatin- e;/orts* an) searchin- for efficient uses of

in)ustrial assets. A-riculture was to e e;/an)e)* lar-ely throu-h the su//ly of in/uts to ta5e a)+anta-e

of new hi-h,yiel) see)s ecomin- a+ailale for foo) -rains. The ru/ee was sustantially )e+alue) in

1>>* an) e;/ort incenti+es were a)7uste) to /romote e;/orts. :ontrols affectin- in)ustry were

sim/lifie)* an) -reater reliance was /lace) on the /rice mechanism to achie+e in)ustrial efficiency.


15/19

The Fourth Fi+e,%ear 9lan 'F% 1>,=3( calle) for a 0B /ercent increase o+er the thir) /lan in real

terms of /ulic )e+elo/ment e;/en)itures. The /ulic sector accounte) for >4 /ercent of /lan

e;/en)itures* an) forei-n ai) contriute) 13 /ercent of /lan financin-. A-riculture* inclu)in- irri-ation*

recei+e) 03 /ercent of /ulic outlaysG the rest was mostly s/ent on electric /ower* in)ustry* an)

trans/ortation. Althou-h the /lan /ro7ecte) national income -rowth at .= /ercent a year* the realiCe)

rate was only 3.3 /ercent.

The Fifth Fi+e,%ear 9lan 'F% 1=B,=?( was )rafte) in late 1=3 when cru)e oil /rices were risin-

ra/i)lyG the risin- /rices 2uic5ly force) a series of re+isions. The fifth /lan was in effect only one year*

althou-h it /ro+i)e) some -ui)ance to in+estments throu-hout the fi+e,year /erio). The economy

o/erate) un)er annual /lans in F% 1=? an) F% 1=.

The "i;th Fi+e,%ear 9lan 'F% 1?4,?B( was inten)e) to e fle;ile an) was ase) on the /rinci/le of

annual rollin- /lans. !t calle) for )e+elo/ment e;/en)itures of nearly Rs1. trillion 'in F% 1=

/rices(* of which 4 /ercent woul) e finance) from )omestic sources* = /ercent of which woul) come

from the /ulic sector. 9ulic,sector )e+elo/ment s/en)in- woul) e concentrate) in ener-y '0

/ercent(G a-riculture an) irri-ation '0B /ercent(G in)ustry inclu)in- minin- '1> /ercent(G trans/ortation

'1> /ercent(G an) social ser+ices '1B /ercent(. !n /ractice* sli-htly more was s/ent on social ser+ices at

the e;/ense of trans/ortation an) ener-y. The /lan calle) for 8D9 -rowth to increase y .1 /ercent a

year* a tar-et that was sur/asse) y 4.3 /ercent. A ma7or o7ecti+e of the /lan was to increase

em/loyment* es/ecially in rural areas* in or)er to re)uce the le+el of /o+erty. 9oor /eo/le were -i+en

cows* ulloc5 carts* an) han)loomsG howe+er* suse2uent stu)ies in)icate) that the income of only

aout 14 /ercent of the /oor rose ao+e the /o+erty le+el.

The "e+enth Fi+e,%ear 9lan 'F% 1?,?( en+isione) a -reater em/hasis on the allocation of resources

to ener-y an) social s/en)in- at the e;/ense of in)ustry an) a-riculture. !n /ractice* the main increase

was in trans/ortation an) communications* which too5 u/ 1= /ercent of /ulic,sector e;/en)iture )urin-

this /erio). Total s/en)in- was tar-ete) at nearly Rs3. trillion* of which B /ercent woul) e finance)

from )omestic resources* inclu)in- B? /ercent from the /ulic sector. The /lanners assume) that /ulic

sa+in-s woul) increase an) hel/ finance -o+ernment s/en)in-. !n /ractice that increase )i) not occurG

instea)* the -o+ernment relie) on forei-n orrowin- for a -reater share of resources than e;/ecte).


16/19

The ei-hth /lan was launche) in A/ril 10 an) em/hasiCe) mar5et,ase) /olicy reform rather than

2uantitati+e tar-ets. The ei-hth /lan inclu)e) three -eneral -oals. First* it sou-ht to cut ac5 the /ulic

sector y sellin- off failin- an) inessential in)ustries while encoura-in- /ri+ate in+estment in such

sectors as /ower* steel* an) trans/ort. "econ)* it /ro/ose) that a-riculture an) rural )e+elo/ment ha+e

/riority. Thir)* it sou-ht to renew the assault on illiteracy an) im/ro+e other as/ects of social

infrastructure* such as the /ro+ision of fresh )rin5in- water. 8o+ernment )ocuments issue) in 10

in)icate) that 8D9 -rowth was e;/ecte) to increase from aroun) /ercent a year )urin- the se+enth

/lan to .> /ercent a year )urin- the ei-hth /lan.

#ith tar-ete) -rowth of >.L* the ninth /lan was /re/are) un)er $nite) Front 8o+ernment focuse) on

7rowth ith )ocial 8ustice 9 ":uality; Ninth 9lan aime) to )e/en) /re)ominantly on the /ri+ate

sector !n)ian as well as forei-n 'FD!( I "tate was en+isa-e) to increasin-ly /lay the role of facilitator I increasin-ly in+ol+e itself with social sector +iC e)ucation* health etc an) infrastructure where /ri+ate

sector /artici/ation was li5ely to e limite). !t assi-ne) /riority to a-riculture I rural )e+elo/ment with

a +iew to -enerate a)e2uate /ro)ucti+e em/loyment an) era)icate /o+erty.

Reco-nisin- that economic -rowth cant e the only o7ecti+e of national /lan* Tenth 9lan ha) set

11? o3 (evelo&ment esi)es ? L -rowth tar-et. The

tar-ets inclu)e) re)uction in -en)er -a/s in literacy an) wa-e rate* re)uction in !nfant I maternal

mortality rates* im/ro+ement in literacy* access to /otale )rin5in- water cleanin- of ma7or /ollute)

ri+ers* etc. 8o+ernance was consi)ere) as factor of )e+elo/ment I a-riculture was )eclare) as /rime

mo+in- force of the economy.

"tates role in /lannin- was to e increase) with -reater in+ol+ement of 9anchayati Ra7 !nstitutions. "tate

wise rea5 u/ of tar-ets for -rowth an) social )e+elo/ment sou-ht to achie+e alance) )e+elo/ment of

all states.

The ele+enth 9lan was aime) +owar(s #aster 9 More 'nclusive 7rowth after $9A ro)e ac5 to

/ower on the /lan5 of hel/in- Aam Aa)mi 'common man(. !n)ia ha) emer-e) as one of the fastest

-rowin- economy y the en) of the Tenth 9lan. The sa+in-s an) in+estment rates ha) increase) *

in)ustrial sector ha) res/on)e) well to face com/etition

in the -loal economy an) forei-n in+estors were 5een to in+est in !n)ia. &ut the -rowth was not

/ercei+e) as sufficiently inclusi+e for many -rou/s * s/ecially ":s * "Ts I minorities as orne out y


17/19

)ata on se+eral )imensions li5e /o+erty* malnutrition* mortality* current )aily em/loyment etc. The

roa) +ision for 11th 9lan inclu)e) se+eral inter relate) com/onents li5e ra/i) -rowth re)ucin- /o+erty

I creatin- em/loyment o//ortunities * access to essential ser+ices in health I e)ucation* s/ecially for

the /oor* e;tension if em/loyment o//ortunities usin- National Rural Em/loyment 8uarantee

9ro-ramme * en+ironmental sustainaility * re)uction of -en)er ine2uality etc. Accor)in-ly +arious

tar-ets were lai) )own li5e re)uction in unem/loyment 'to less than L amon- e)ucate) youth( I

hea)count ratio of /o+erty 'y 14 L(* re)uction in )ro/ out rates* -en)er -a/ in literacy * infant

mortality * total fertility * malnutrition in a-e -rou/ of 4,3 ' to half its /resent le+el(* im/ro+ement in se;

ratio* forest I tree co+er* air 2uality in ma7or cities* * ensurin- electricity

connection to all +illa-es I &9 househol)s 'y 044( I reliale /ower y en) of 11th 9lan * all

weather roa) connection to haitations with /o/ulation 1444I ao+e '44 in hilly areas( y 044*

connectin- e+ery +illa-e y tele/hone I /ro+i)in- roa) an) connecti+ity to all

+illa-es y 0410.


18/19

+he 7D$ contriution o3 various sectors o3 'n(ian economy have evolve( etween 1@51 to 201A, as its economy has (iversi3ie( an(

(evelo&e(.

Accor)in- to -ra/h* the /rimary sector 'a-riculture( we can see that the sector


19/19

Re3erence

• Tri/athi An) 9rasa)044P. A-ricultural De+elo/ment !n !n)ia "ince !n)e/en)ence Journal Of

Emerging Knowledge On Emerging Markets* Vol. 1* Art. ?

• Economic Activities And Infrastructural Development In India. Mo)ule ?

• #a)h+a* :haran D. !n)ia Tryin- To ieralise Economic Reforms "ince 11

• 9ais* esim'041B(. 8rowth An) "tructure

• Of The "er+ices "ector !n !n)ia* !nstitute For "tu)ies !n !n)ustrial De+elo/ment.

• &hat*T.9.'0413(. Growth and structural changes in Indian Industr! !nstitute For "tu)ies !n

!n)ustrial De+elo/ment.

• 9uri*V * an) " Mishra* Indian Econom "# st edition

• Datt I "un)haram* Indian Econom $English% &'th Edition

• "ethi* D.* an) $. An)rews* (rank I)* Economics

eco project2015

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