Five-Year Plans, Reform Measures, Poverty Line and Currency System in India

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Five-Year Plans

Five-Year Plans
Five-Year Plans

Plan

Period

Remarks

First Five-Year Plan

1951-52 to 1955-56

Priority given to irrigation and agriculture.

Second Five-Year Plan

1956-57 to 1960-61

Development of basic and heavy industries.

Third Five-Year Plan

1961-62 to 1965-66

Long-term development of India’s economy.

Annual Five-Year Plan

1967-68 to 1968-69

Plans holiday period. Pakistan and Chinese wars.

Fourth Five-Year Plan

1969-70 to 1973-74

It brought in a scientific temper to Indian agriculture.

Fifth Five-Year Plan

1974-75 to 1977-78

Janata Government terminated a year earlier and introduced the Rolling-Plan.

Annual Five-Year Plan

1978-79 to 1979-80

Introduced by the Janata Government.

Sixth Five-Year Plan

1980-81 to 1984-85

New Government revised plan for 1981-85 and approved subsequently.

Seventh Five-Year Plan

1985-86 to 1989-90

Productivity, work and food were given basic priorities.

Eighth Five-Year Plan

1992-93 to 1996-97

was designed to tackle the twin problems of unemployment and poverty

Ninth Five-Year Plan

1997-98 to 2001-2002

Ensuring the implementation of Common Minimum Programme and boosting agricultural investment

Tenth Five-Year Plan

2002-2003 to 2006-2007

Funds will be allocated especially towards poverty alleviation programmes.

Tenth Five-Year Plan: 2002 to 2007 – at a Glance

Tenth Five Year Plan: Planning Commission finalised the Approach Paper to Tenth Five-Year Plan. It aims to increase annual growth target of 8 per cent and lowers the annual Foreign Direct Investment (FDI) target to $ 7.5 billion against $ 8 billion set in the Approach Paper, which would be less than 1 per cent of the Gross Domestic Product (GDP). It also lays emphasis on social sector along with economic growth while giving projection to the planned development of the country during 2002-07.

Highlights of the Tenth Five-Year Plan

  • Annual 8 per cent GDP growth during 2002-07

  • Annual FDI flows of US $ 7.6 billion

  • Disinvestment target of Rs.78, 000 crore in five years

  • 50 million jobs in five years

  • Reduction in poverty ratio to 21 from 26 per cent by 2007

  • Children to complete at least 5 years of schooling by 2007

  • Literacy rate to be raised from 65 to 75 per cent.

  • Potable drinking water in all villages

  • Infant mortality rate to be 45 out of 1000

  • Domestic savings to be 26.8 per cent of GDP; and

  • Investment rate pegged at 28.4 per cent of GDP.

Reform Measures

The Tenth Five-Year Plan also includes the following reform measures:

  • Agriculture reforms

  • Go ahead with labour reforms

  • Abolish restrictions on road transport passenger services

  • Involve private sector in road maintenance

  • Early adoption of Civil Aviation Policy

  • Remove Infrastructure constraints in energy, transport and water sectors

  • Undertake tax reform measures; and

  • Funds to be mobilised through savings and domestic sources.

Poverty Line

The Planning Commission in 1980 defined poverty line in the sixth five-year plan document on the basis of nutritional standards as : Per capita expenditure below Rs.152/-per month(Rural Population) and Rs.133/= per month(Urban Population). Percent of population living below the poverty line is 25.8 %( 75% of which is tribal population). Therefore, total number of people below the poverty line is estimated at 211 million.

Currency System in India

It was first introduced during the reign of the Gupta’s in Gold coins (390 AD - 550 AD). During the period of Sher Shah Suri (1542 AD) introduce the Rupee, it was a silver coin weighing around 179 grams and it replaced the gold coins. In 1882 Paper Currency was introduced by the British government in India. Presently denominations of Re.5, 10, 20,100 and 500 are in circulation. The currency notes of Rs.500 bearing portrait of Mahatma Gandhi and the Asoka Pillar emblem was issued on October 3, 1987. All notes above one-rupee denomination are issued by the Reserve Bank of India, bearing the signature of Governor, Reserve Bank of India. One Rupee note bears the signature of the Secretary, Ministry of Finance. Reserve Bank of India manages distribution and administration of all currency denominations.

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