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Unit 2: Major Segments of Indian Society

reduction in the concentration of income. However, the performance of the plan did not justify the Notes
hopes that had been placed on it. Achievements in almost all sectors of the economy were lower
that the plan targets. Consequently, as against a near 13 per cent fall in price index during the First
Plan, the Second Plan witnessed a 12.5 per cent rise in the price level.
The Third Five Year Plan (1961-66) aimed at securing a marked advance towards self-sustaining
growth. It listed a set of five objectives, namely, increase in annual national income by 5 per cent,
self-sufficiency in agriculture, growth of basic industries (like steel, power, chemicals), maximum
use of manpower resources, and decentralisation of economic power. Agriculture was once again
given top priority and about 35 per cent of the outlay was allocated to this sector. The performance
of the Third Plan was also as disheartening as that of the Second Plan. Over the five year period,
the national income grew by 2.6 per cent as against the target of 5 per cent. In the agricultural
sector also, the production suffered a setback.
The shape of the economy was in fact so bad at the end of the Third Plan that the Fourth Plan,
which was to be launched in March 1966 had to be abandoned and was replaced by three Annual
Plans. The three year period between 1966 and 1969, sometimes described as a period of ‘plan
holiday’, was devoted to rectifying the ills that had crippled the planning process during the
operation of the Third Plan. The main objective of the three Annual Plans was to continue the
unfinished tasks of the Third Plan.
The Fourth Five Year Plan (1969-74) aimed at increasing national income by 5.5 per cent, creating
economic stability, reducing inequalities in income distribution, and achieving social justice with
equality. Simultaneous growth of both agricultural and industrial sectors was fully recognised under
the Fourth Plan. But this plan could not ensure economic growth. Neither could it achieve self-sufficiency
in foodgrains, nor could the generation of employment opportunities make any significantdent in the
widespread unemployment problem. The inflationary situation was also aggravated.
The Fifth Five Year Plan (1974-79) mainly aimed at removal of poverty and attainment of self-
reliance. The plan also aimed at increase in employment opportunities, self-sufficiency, policy of
minimum wages, removal of regional imbalances, and encouragement of exports. The plan ended
during the Janata regime in 1978 instead of 1979 and the Sixth Plan was started as the ‘rolling
plan’. But when the Congress once again came to power in 1978, the period of the Fifth Plan, was
described as being 1974 to 1979. The Fifth Plan however, could not achieve its targets in any field,
except in increase of foodgrains.
The Sixth Five Year Plan (1980-85) was formulated after taking into account the achievements and
shortcomings of the past three decades of planning. Removal of poverty was the foremost objective
of the plan. Stress was laid on economic growth, elimination of unemployment, bringing down of
inequality in the distribution of income, self-sufficiency in technology, raising the lifestyles of the
weaker sections of society, improving the public distribution system, and control of the increasing
population. This plan had a fairly convincing success. According to NSS (National Sample Survey),
the proportion of people living below the poverty line declined from 48.3 per cent in 1977-78 to
36.9 per cent in 1984-85.
The Seventh Five Year Plan (1985-90) had three priorities of increasing food, work and productivity.
With its emphasis on generating substantial productive employment, the Seventh Plan aimed at
significant reduction in the incidence of poverty and improvement in the quality of life of the
poor. However, this plan also failed totally in achieving its targets. There was a severe setback on
the agricultural front, in the manufacturing sector, in creating employment, and in the balance of
payments position of the country.
The Eighth Five Year Plan (1992-97) which was to be started in 1990 was actually enforced from
April 1992. The 1990-91 and 1991-92 years were considered to be yearly plans. The plan was
supposed to be oriented towards employment generation. The plan size was nearly double the
previous plan but then all plans have been twice the size of the previous plans. The growth rate
was also more or less what the previous plans aimed at. The fact that they rarely reached the
target except in the First and Sixth Plans is a different matter. The Eighth Plan was thus no
different from the earlier plans, and its results also were no different either.

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