Page 40 - DMGT401Business Environment

Unit 1: Indian Business Environment

Along with high growth rate aiming for improving livelihood support and increasing Notes
employment, the Eleventh Plan strategy calls for new emphasis on education, health and
other socially relevant issues. The approach to the plan by the Planning Commission has
very appropriately reflected in its title "Towards Faster & More Inclusive Growth". The
importance of S&T in the development process envisages innovative solutions.
Eleventh Plan is being formulated at a crucial juncture. In a unipolar and truly globalized
world where trade barriers are getting dismantled, an organization has to perform and
deliver in real time. The global competition is real and severe for every sector including
R&D organizations like CSIR. Either we stay relevant by increased and defined focus with
well set and articulated delivery protocols or be swamped by competition, primarily
from private sector, R&D laboratories both national and international.

1.5.2 Five Year Plans: Target vs. Achievements

1st Plan (1951-56)

1. The first five year plan was presented by Jawaharlal Nehru in 1951. The First Five Year
Plan was initiated at the end of the turmoil of partition of the country. It gave importance
to agriculture, irrigation and power projects to decrease the countries reliance on food
grain imports, resolve the food crisis and ease the raw material problem especially in jute
and cotton. Nearly 45% of the resources were designated for agriculture, while industry
got a modest 4.9%. The focus was to maximize the output from agriculture, which would
then provide the impetus for industrial growth.
2. Though the first plan was formulated hurriedly, it succeeded in fulfilling the targets.
Agriculture production increased dramatically, national income went up by 18%, per
capita income by 11% and per capita consumption by 9.
2nd Plan (1956-61)

1. The second five year plan was initiated in a climate of economic prosperity, industry
gained in prominence. Agriculture programmes were formulated to meet the raw material
needs of industry, besides covering the food needs of the increasing population. The
Industrial Policy of 1956 was socialistic in nature. The plan aimed at 25% increase in
national income.
2. In comparison to First Five Year plan, the Second Five Year Plan was a moderate success.
Unfavorable monsoon in 1957-58 and 1959-60 impacted agricultural production and also
the Suez crisis blocked International Trading increasing commodity prices.

3rd Plan (1961-66)

1. While formulating the third plan, it was realized that agriculture production was the
destabilizing factor in economic growth. Hence agriculture was given due importance.
Also allotment for power sector was increased to 14.6% of the total disbursement.
2. Emphasis was on becoming self reliant in agriculture and industry. The objective of import
substitution was seen as sacrosanct. In order to prevent monopolies and to promote
economic developments in backward areas, unfeasible manufacturing units were
augmented with subsidies. The plan aimed to increase national income by 30% and
agriculture production by 30%.

LOVELY PROFESSIONAL UNIVERSITY 33