Fourth Five-Year Plan (1969-1974)
Due to the massive failure of the third five-year plan, the Indian government announced a Planned Holiday from 1966 to 1969. The fourth five-year plan was implemented in 1969 under the leadership of Prime Minister Mrs. Indira Gandhi. The primary objectives of this plan were economic growth with stability and progressive development of the country toward self-reliance. The main achievements that happened during this plan are as follows:
- During the tenure of this plan, India successfully fought the war with Pakistan and helped Bangladesh gain independence in 1971.
- The most significant achievement was the Green Revolution, which marked the beginning of India’s Self-Reliance on food grains.
- The banking sector witnessed a major change as 14 major Indian banks were nationalized.
- Implementation of the family planning programs.
- The achieved growth was 3.3% which was far below the target growth rate of 5.6%
Conclusion:
Economic development was the main objective of the five-year plan in India, which is measured by Gross Domestic Product (GDP) and per capita income. Economic planning aims for better utilization of human resources, increased employment, stable market conditions, and self-reliance on commodities. The five-year plans aim to increase the welfare and development of social services such as education, healthcare, and emergency services as a part of economic development.
There was an opinion that centralized planning could not work beyond a certain point for a diverse country like India, so the NDA government dissolved the Planning Commission and replaced it with the Niti Aayog. No five-year plan was implemented after the twelfth five-year plan ended in 2017.
Five Years Plan From 1951-1974
After its independence, India went through different kinds of social, political, and economic turmoil and disturbances. The economy faced many challenges, agricultural development was lagging, trades and industries were struggling, and human resources were becoming inadequate and inefficient. During this time of crisis, the policymakers and the founders of the new constitution came up with a strategy of implementing a five-year plan to show India a direction to achieve developmental objectives that would help India to recover from the crisis and become Self-Sufficient. This plan started with two main objectives – the Removal of Poverty and the attainment of Self-Reliance. This long-term planning achieved higher growth rates, better income distribution, and increased domestic savings. It also focused on import substitution and export promotion to earn revenue and facilitate economic growth.