Page 41 - DMGT401Business Environment

Business Environment

Notes 3. The wars with China in 1962 and Pakistan 1965 and bad monsoon in almost all the years,
meant the actual performance was way of the target.

4th Plan (1969-74)

1. At the time of initiating the fourth plan it was realized that GDP growth and rapid growth
of capital accumulation alone would not help improve standard of living or to become
economically self-reliant. Importance was given to providing benefits to the marginalized
section of the society through employment and education.
2. Disbursement to agricultural sector was increased to 23.3% .Family planning programme
was given a big stimulus.
3. The achievements of the fourth plan were below targets. Agriculture growth was just at
2.8% and green revolution did not perform as expected. Industry too grew at 3.9%.

5th Plan (1974-79)

1. As a result of inflationary pressure faced during the fourth plan, the fifth plan focused on
checking inflation. Several new economic and non-economic variables such as nutritional
requirements, health, family planning etc. were incorporated in the planning process.
Investment mix was also formulated based on demand estimated for final domestic
consumption.
2. Industry got the highest allocation of 24.3% and the plan forecasted a growth rate of 5.5%
in national income.
3. The fifth plan was discontinued by the new Janata government in the fourth year itself.

6th Plan (1980-85)

1. The Janata government moved away from GNP approach to development, instead sought
to achieve higher production targets with an aim to provide employment opportunities
to the marginalized section of the society. But the plan lacked the political will.
2. The Congress government on taking office in 1980 formulated a new plan with a strategy
to lay equal focus on infrastructure and agriculture.

3. The plan achieved a growth of 6% p. a.

7th Plan (1985-89)

The first three years of the seventh plan saw severe drought conditions, despite which the food
grain production rose by 3.2%. Special programmes like Jawahar Rozgar Yojana were introduced.
Sectors like welfare, education, health, family planning, employment etc. got a larger
disbursement.

8th Plan (1992-97)

1. The eighth plan was initiated just after a severe balance of payment crisis, which was
intensified by the Gulf war in 1990. Several structural modification policies were brought
in to put the country in a path of high growth rate. They were devaluation of rupees,
dismantling of license prerequisite and decrease trade barriers.

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