History of Planning in India

Here’s an overview of the history of planning in India:

1. Pre-Independence Era (Before 1947):

   • During the colonial era, India had limited economic planning as it was under British rule.
   • Some planning efforts took place at the provincial level, but these were primarily geared toward addressing immediate issues and concerns.

2. Post-Independence and the First Five-Year Plan (1951-1956):

   • After gaining independence in 1947, India initiated its formal planning process.
   • The Planning Commission was established in 1950, and it played a central role in formulating and implementing plans.
   • The First Five-Year Plan was launched in 1951, emphasizing industrialization and infrastructure development.
   • The focus was on achieving self-sufficiency and reducing dependence on imports.
   • The Mahalanobis model, which emphasized heavy industry, guided this plan.

3. The Second Five-Year Plan (1956-1961):

   • This plan continued the focus on industrialization, with an emphasis on building basic industries.
   • The Indian government adopted the concept of “socialistic pattern of society” during this period, which included the expansion of the public sector.

4. Third Five-Year Plan (1961-1966) and the Plan Holiday (1966-1969):

   • The Third Five-Year Plan continued to prioritize industrialization but faced challenges like the Indo-China War in 1962 and the Indo-Pakistan War in 1965.
   • The period from 1966 to 1969, known as the “Plan Holiday,” marked a pause in the Five-Year Plans as India focused on addressing food shortages and agricultural development.

5. Return to Planning (1970s and 1980s):

   • The Fourth Five-Year Plan (1969-1974) refocused on poverty alleviation and agriculture.
   • The Fifth Five-Year Plan (1974-1979) emphasized self-reliance and the promotion of small-scale and rural industries.
   • The Sixth Five-Year Plan (1980-1985) aimed at attaining social justice and economic growth, emphasizing the role of the public sector.

6. Economic Reforms (1991 Onward):

   • India embarked on a path of economic liberalization and globalization in 1991 under the leadership of Prime Minister P.V. Narasimha Rao and Finance Minister Manmohan Singh.
   • The shift involved opening up the economy to foreign investment, reducing trade barriers, and promoting market-oriented economic policies.
   • Subsequent Five-Year Plans continued to focus on economic growth and poverty alleviation but incorporated elements of market-driven policies.

7. Contemporary Planning (2000s Onward):

   • India’s planning efforts have increasingly emphasized social development, education, healthcare, and infrastructure, while seeking to address disparities and regional imbalances.
   • The Planning Commission was replaced by the National Institution for Transforming India (NITI Aayog) in 2015, which has a more decentralized approach to planning