Every five years, the central government of India launches a Five Year Plan to manage the social and economic development of the country. These plans help organize income and spending for the next five years. The first Five Year Plan started in 1951. Up until 2017, India’s economic model followed these plans, focusing on industrial growth, boosting the economy, improving agriculture, and creating job opportunities to make people independent and strong.
This article shares detailed information about all the Five Year Plans of India. It tells you how many plans have been launched so far and what they aimed to achieve. Keep reading to know everything about India’s Five Year Plans up to 2025.
Overview of a Five Year Plan (Panchvarshiya Yojana)
After India became independent, the government started a series of Five Year Plans to develop and grow the economy. These are national plans aiming to benefit people in many ways, making citizens independent and aware of government schemes. Earlier, the Planning Commission managed these plans, but now the National Institution for Transforming India (NITI Aayog) looks after them.
NITI Aayog began on 1 January 2015 and acts as an advisory body. It doesn’t make decisions but gives guidance for future policies and benefits for citizens. So far, India has launched 12 Five Year Plans. The 12th plan focused on agricultural growth, new job creation, and improving productivity by using human and physical resources.
Main Information About Five Year Plans
| Plan Name | Five Year Plan (Panchvarshiya Yojana) |
| Started By | Government of India |
| Total Plans Launched | 12 Plans |
| Planning Commission Formation | 15 March 1950 |
| NITI Aayog Establishment | 1 January 2015 |
| Main Benefit | Creating New Job Opportunities |
| Objective | Boost Agriculture and Economic Growth |
| Official Website | https://niti.gov.in/ |
History of India’s Five Year Plans
1st Five Year Plan (1951-1956)
The first Five Year Plan was launched under Prime Minister Jawaharlal Nehru in 1951. The plan mainly focused on agriculture, irrigation projects, and building dams like the Bhakra Nangal Dam. It was based on the Harrod-Domar model, focusing on savings and investment. This plan was very successful: the target growth rate was 2.1%, but actual growth reached 3.6%.
2nd Five Year Plan (1956-1961)
The second plan followed the P.C. Mahalanobis model and emphasized industrial development and the public sector. Taxes were placed on imports to protect domestic industries. The plan aimed for a growth rate of 4.5%, achieving 4.27%. It was considered successful.
Prime Minister Skill Development Scheme
3rd Five Year Plan (1961-1966)
This plan focused on improving agriculture and wheat production, also known as the Gadgil plan. It encouraged democracy by introducing local elections and building schools in rural areas. The Green Revolution started during this time. Although the target growth was 5.6%, actual growth was only 2.4%, mainly because of wars with China in 1962 and Pakistan in 1965, causing economic setbacks.
4th Five Year Plan (1969-1974)
Started under Prime Minister Indira Gandhi, this plan aimed at steady growth and independence. Important steps like the nationalization of 14 major banks were taken. The plan supported the Green Revolution and programmes for drought-resistant areas. The growth target was 5.7%, but actual growth was 3.3%, marking the plan as unsuccessful.
5th Five Year Plan (1974-1978)
This plan prioritized agriculture, followed by industry and mining. It focused on increasing jobs and reducing poverty. The Indian National Highway system began, and basic minimum needs programs were introduced. The plan achieved 4.8% growth against a target of 4.4%. However, the newly elected government in 1978 cancelled the plan.
6th Five Year Plan (1980-1985)
This plan marked the start of economic liberalization in India. The goal was to eliminate poverty and promote technological independence. India’s National Bank for Agriculture and Rural Development (NABARD) was established, and family planning programs began. The plan was successful, achieving 5.7% growth against a 5.2% target.
7th Five Year Plan (1985-1990)
Prime Minister Rajiv Gandhi’s plan focused on using technology to improve industrial productivity. It aimed at boosting food production, creating jobs, and promoting social justice. For the first time, private sectors were given more importance. The plan exceeded its 5.0% growth target, achieving 6.1%. Important schemes started during this period include Indira Awas Yojana (1985-86), Jawahar Rozgar Yojana, and Nehru Rozgar Yojana (both in 1989).
8th Five Year Plan (1992-1997)
Based on the John W. Mellor model, this plan focused on modernizing industries and improving various sectors like infrastructure, population control, poverty reduction, and tourism. It also promoted decentralization by involving local governments. The plan exceeded its 5.6% growth target by achieving 6.8% growth.
Prime Minister Narendra Modi Scheme
9th Five Year Plan (1997-2002)
Implemented during India’s 50th anniversary of independence under Prime Minister Atal Bihari Vajpayee, this plan aimed to eliminate poverty, create jobs, and promote human development through both private and public sectors. It focused on primary education, clean drinking water, and rural development. Although the target growth was 7.1%, actual growth was 5.5%.
10th Five Year Plan (2002-2007)
The aim was to double the income of every Indian in the next 10 years by reducing poverty and creating jobs. It also worked to reduce regional disparities and close the gender gap in education. The plan targeted 8.0% growth and achieved 7.6%. It also recorded a population growth decline between 2001-2011.
11th Five Year Plan (2007-2012)
Created with the Rangarajan model, this plan emphasized higher education, distance learning, and IT institutions. It focused on fast and inclusive growth. The Right to Education Act was introduced in 2009, making education free and required for children aged 6-14. Important schemes launched included Prime Minister Adarsh Gram Yojana, Aam Aadmi Bima Yojana, and Rajiv Awas Yojana. The plan targeted 8.1% growth but achieved 7.9%.
12th Five Year Plan (2012-2017)
This plan focused on social welfare, agriculture, industries, energy, communication, and transportation. Its goals included creating 50 million new jobs outside agriculture, reducing child malnutrition, electrifying all villages, planting a million hectares of trees annually, and connecting 90% of families to banking services. Though it aimed for 9% growth, the National Development Council approved 8%, which was the actual target.
Since 2017, India has stopped making Five Year Plans as the government moved to other policy approaches. The 12th plan was the last in this series. Though no more plans will be made, these plans played a big role in India’s economic development.