Five Year Plans of India

The Second Five Year Plan was based on the Mahalanobis model (named after P.C. Mahalanobis, Indian statistician and economist). It emphasised rapid industrialisation, especially heavy industries and capital goods.

The Planning Commission of India was established on March 15, 1950 by an executive resolution of the Government of India. It was chaired by the Prime Minister and replaced by NITI Aayog in January 2015.

NITI Aayog (National Institution for Transforming India) replaced the Planning Commission on January 1, 2015. Unlike the Planning Commission, NITI Aayog is an advisory body and does not allocate funds to states.

The period 1966–1969 is known as the 'Plan Holiday' or 'Annual Plans period' when three annual plans were implemented instead of a regular Five Year Plan, due to the Indo-Pakistan war (1965), drought, and devaluation of the rupee.

The Green Revolution in India gained momentum during the Fourth Five Year Plan (1969–74). It introduced high-yielding variety (HYV) seeds, modern irrigation, and chemical fertilisers, especially in Punjab, Haryana, and Western UP.

"Garibi Hatao" was the slogan of the Fifth Five Year Plan (1974–79), launched under Prime Minister Indira Gandhi. The plan focused on poverty alleviation and self-reliance, with the Minimum Needs Programme as a key component.

The Twelfth Five Year Plan covered the period 2012–2017. It was the last Five Year Plan as the Planning Commission was replaced by NITI Aayog in 2015. The Twelfth Plan targeted 8% GDP growth with a focus on faster, sustainable, and more inclusive growth.

The Second Five Year Plan (1956–61) aimed to establish a 'Socialistic Pattern of Society'. This was the Avadi Resolution passed by the Congress party in 1955, which influenced the plan's focus on public sector and heavy industries.

The Third Five Year Plan (1961–66) was considered a failure and terminated before schedule due to the Indo-China War (1962), Indo-Pakistan War (1965), and two consecutive droughts. This led to the Plan Holiday of 1966–69.

The Rolling Plan concept was introduced by the Janata Party government under Morarji Desai in 1978. Under this system, there was a plan for the current year, a plan for a fixed number of years ahead, and a perspective plan. This was later discontinued.

The Eighth Five Year Plan coincided with India's historic LPG (Liberalisation, Privatisation, Globalisation) reforms of 1991. The plan focused on human development, employment generation, and private sector participation.

The Eleventh Five Year Plan (2007–12) set an ambitious target of 9% GDP growth rate. It focused on inclusive growth with particular attention to education, health, infrastructure, and rural development.

V.T. Krishnamachari was the first Deputy Chairman of the Planning Commission of India. The Prime Minister is the ex-officio Chairman. The Deputy Chairman is the effective head who oversees day-to-day functioning.

Agriculture and irrigation received the highest allocation (about 37%) in the First Five Year Plan (1951–56). The plan prioritised food production to address acute food shortages and achieve self-sufficiency.

India achieved its highest average annual growth rate of about 8% during the Eleventh Five Year Plan (2007–12), surpassing the 9% target partially. This period also saw major social sector investments under MGNREGA and the Right to Education Act.

The National Development Council (NDC), also called the 'Super Cabinet', approves Five Year Plans. It was headed by the Prime Minister and included all state Chief Ministers and Planning Commission members. It was dissolved along with the Planning Commission in 2015.

The Balwant Rai Mehta Committee (1957) recommended establishment of Panchayati Raj institutions for democratic decentralisation. Its recommendations were implemented in Rajasthan first in 1959 and formed the basis for grassroots-level planning.

Rajasthan was the first state to implement Panchayati Raj on October 2, 1959 at Nagaur district, based on the recommendations of the Balwant Rai Mehta Committee. Prime Minister Nehru inaugurated it.

NITI Aayog was directly announced by Prime Minister Narendra Modi on January 1, 2015 without a formal committee recommendation. It replaced the Planning Commission to shift from a top-down approach to a bottom-up cooperative federalism model.