12th Five Year Plan
Approach
(CLASSROOM for Students)
Planning commission clearance:
20th Aug 2011
Approval: 16th
Sep 2011
Aim:
i.
Second
generation economic reform
ii.
Improving
Governance
iii.
Raise Annual
Growth 9+
For approval form NDC:
Oct 15-16
Emphasis:
i.
Inclusive growth
ii.
Governance
iii.
Corruption
CLASSROOM:
Planning Commission
1930’s
|
Rudimentary economic planning first began under British Raj
|
|
1938
|
“Planned
Economy of India” book by Sir
M.Visvesvarayya
|
|
-
|
Planning Committee was set up by Subhash Chandra bose and chaired
by Jawaharlal Nehru.
|
|
1944
|
Industralist &
economist formulated 4 development plans.
|
|
1944-46
|
Planning board under Colonial Government of India
|
|
15th march 1950
|
Planning commission directly reporting to PM of India
(Pandit Jawaharlal Nehru as its chairman)
|
|
Currently
|
PM – Dr.Manmohan Singh
|
Ex-Officio Chairman
|
Mr. Motek Singh
Aluwaliah
|
Nominated Deputy
Chairman (Cabinet Rank)
|
|
CLASSROOM:
National Development Council
1)
Planning commission works
under the guidance of the National Development Council.
2)
The highest deciding body
for planning in India.
3)
Formed in: 1953 (To associate
states in the formulation of Plan)
4)
Sarkaria Commission on Centre-State Relations recommended
the NDC a Constitutional status (Under Article 263, Constitution of India)
5)
Members:
Prime Minister of India
All Union Cabinet Ministers
Chief Ministers/ Administrators
of all States & UTs
Members of Planning Commission.
Five Year Plan in India
FYP
|
Duration
(Priority)
|
Important Achievement /
Emphasis
|
GDP
|
|
Target
|
Achieved
|
|||
1st
|
1951-56
(Agri)
|
By Pandit J Nehru
(based onHorrod Dowar’s Model)
- Bhakra Dam
& Hirakud Dam
- 1956- five
IITs started
- University
Grant Commission setup
Development Programme
1) Community
Development Program (1952) – Overall development of rural area with people’s
participation
|
2.1%
|
3.6%
|
2nd
|
1956-61
(Industry)
|
Based on Prasanta Chandra Mahalanobis
- Hydroelectric power project & 5 Steel Plant at Bhilai, Durgapur, Rourkee
- Atomic Energy Commission (AEC) formed in 1948 under Homi J.
Bhabha
- Tata Institue of Fundamental Research (TIFR) established
- Talent Search & Scholarship program started in 1957.
Development Programme
1) Intensive
Agriculture Development Program (1960-61)– To Provide Loan, Seed, Fertilizer,
Tools to the farmers
|
4.5%
|
|
3rd
|
1961-66
(Agri)
|
- Improved Wheat Production (Punjab)
- State Electricity Board setup
- State Transportation Corporation formed
- State Secondary Education board formed
Failed FYP – Reasons
1.
Sino-India War 1962
2.
Indo-Pak War 1965-66
3.
Bad Monsoon 1965
|
5.6%
|
2.2%
|
-
|
1966-69
|
Plan holiday / 3 Annual
plans
-
2 successive years of Draught
-
Devaluation of Currency
-
Erosion of Plan resources
|
-
|
-
|
4th
|
1969-74
|
Indira Gandhi Government
- 14 Banks Nationalized
- Green Revolution advanced Agriculture
War & Defence
- Indo-Pak war 1971 & Bangladesh Liberation war.
- Smiling Buddha underground nuclear test 1974 (in response to US deployment of seventh fleet in Bay of Bengal)
|
5.7%
|
3.3%
|
5th
|
1974-79
|
- Electricity
Supply Act 1975
- Indian
National Highways System introduced
Emergency
Clamed in 1977
-
Indira Government down
-
New Government Moraji Desai
-
Rejected the 5th FYP in 1978
Development Programme
1)
20 Point
program introduced (1975)-Poverty Eradication and raising the standard of
living.
2)
Food for
work (1977-78)
|
4.4%
|
5.0%
|
-
|
1979-80
|
Plan Holiday / Annual Plan
Development Programme
1)
National
Rural Employment Programme (1980)
|
-
|
-
|
6th
|
1980-85
|
- First success of Mahalanobis Heavy
Industrialization strategy.
- End of Nehruvian Plan
and Rajiv Gandhi become PM
- Family Planning was introduced.
|
5.2%
|
5.4%
|
7th
|
1985-90
|
- Growth of Agri,
controlled inflation, Favorable Balance of Payment.
1) Council for Advancement of People’s Action & Rural
(1986)
2) Self Employment for urban Poor (1986)
3) Jawahar Rozgar Yojana (1989) – to overcome Rural
unemployment
4) Nehru Rozgar Yojana (1989)- to overcome Urban unemployment
|
5.0%
|
5.7%
|
-
|
1990-92
|
Plan Holiday/ 2 Annual Plans
- Due to Changing Political Situation
- Economic Instability
- Crisis in Foreign Exchange Reserve (1991) (approx. $1bn)
|
-
|
-
|
8th
|
1992-97
(Energy)
|
12th PM Mr.P.V.Narasimha Rao & Finance Minister Dr. Manmohan Singh
(Rao & Manmohan Model of Economic Development)
-
India’s Free Market Reform
-
Beginning of Privatization & liberalization
-
Modernization of Industries
-
India become member of WTO (1st Jan
1995)
Development Programme
1)
Employment
Assurance Scheme (1993) – employment for atleast 100days in a year
|
5.6%
|
6.78%
|
9th
|
1997-2002
(Agri / Rural Develop)
|
Formulated amidst the backdrop of India’s Golden jubilee of
Independence.
Development Programme
1)
Swaran
Jayanti Shahri Rozgar Yojana (1997) - gainful employment / self-employment.
2)
Pradhan
Mantri Gram Sadak Yojana (2000)
3)
Sampurna
Gram Rozgar Yojana (2001)
|
6.5%
|
5.35%
|
10th
|
2002-07
|
- To make India
faster growing Economy
Development Programme
1)
National
Food for work Programme (2004)
2)
Rural
Employment Guarantee Yojana (2005-06)
|
7.9%
|
7.7%
|
11th
|
2007-12
|
GDP-
Gained to 7.4%
(2009-10)from 6.7%(2008-09)
Agriculture-
4% growth
(mid-term review)
Manufacturing-
Regained to
10.8%(2009-10) from 3.2% (2008-09 Financial Crisis)
Health-
(Public Expenditure in Health = 1% of GDP)
-
Accredited
Social Health Worker under NRHM
-
Incentive under Janani Suraksha Yojana
Development Programme
1)
National
Policy on Rehabilitation and Resettlement (2007)
2)
Rashtriya
Krishi Vikas Yojana(2007)
3)
Ujjawala
(2007) - Prevention of Trafficking.
4)
Swabhimaan
(2011) – Financial Inclusion
5)
Bachat
Lamp Yojana (2009)
6)
Jawaharlal
Nehru National Solar Mission (2010)
|
8-10%
|
|
CLASSROOM:
Inclusive
growth
Definition:
The Rapid process
of growth necessary for substantial Poverty elevation, It is pro-poor economic
growth.
RBI
Initiatives:
ü General Credit Card (GCC)
ü RBI setup – Khan Committee (2004)
ü Financial Inclusion – first featured in 2005 – Pilot project in
UT of Pondicherry by K.C.Chakrabarthy (Chairman, Indian Bank)
ü Mangalam (First Village in India – all household provided with
banking facility)
ü RBI – june 2010 – all banks to formulate Financial Inclusion
Plan (FIP) along with their Business plan.
Ambitious plan to cover village having population
above 2000 to have banking facility by 31st march, 2012.
Micro Finance Institution Intiatives:
ü MFI programs are intended to reach poor section of people.
ü National bodies like SIDBI & NABARD – devoting time and
financial resources to MFIs.
ü MFI (Development & Regulation) Bill, 2011
o To advice the central
Government on formulation of polices, schemes, to promote Financial Inclusion.
o Members:
i.
Chairperson – eminent person with
banking experience.
ii.
Members – 2 officers – Rank of
joint Secretary (Ministry of finance & Ministry of Rural Development)
iii.
Member – officer – Rank of ED
from Reserve Bank.
iv.
Member – officer – Rank of ED
from SIDBI
v.
Member – officer – Rank of ED
from National Bank
vi.
Member – officer – Rank of ED
from National Housing Bank
vii.
Other Members – Less than 6 – at
least 2 women – with experience in banking, MFI, Rural Credit.
C.Rangarajan Committee on Financial Inclusion:
ü Set up by Government of
India
ü Reported in Jan/2008
ü Recommendation
o National Rural Financial Inclusion Plan (NRFIP)
o To provide access to Comprehensive Economic Service
i.
50% of the financial excluded
rural cultivator by 2012
ii.
Remaining household to be covered
by 2015
ü Two funds with NABARD
Financial
Inclusion Promotion & Development fund (FIPD)
|
Farmer’s
service Centre
Self Help
Group
Promoting
Rural Entrepreneurship
Developing HR
of Banks
Promotion of
Resource Centre
|
Financial
Inclusion Technology Fund (FITF)
|
Funding
of Low cost Technology Solution
|
1.
Agriculture
2.
Investment & Saving Requirement
10th
plan
|
11th
plan
|
12th
Target
|
||
For Scenario
of Inflation (Avg)
|
4.5 -5
|
5 – 5.5
|
||
Invest (in
GDP)
|
31.8%
|
36.4%
|
38.5%
|
41.4%
|
Result
(Growth)
|
7.8%
|
8.2%
|
9%
|
9.5%
|
3.
Financing Public Sector plan
Gross
Budgetary Support (GBS)
|
11th
plan: 4.92
|
12th
plan: 5.75
|
REASONS for the limited scope (i.e. increase only
around 1.5)
|
||
Net Tax
Revenue
|
7.4
(2011-12)
|
8.91
(2016-17)
|
Non Tax Revenue
|
1.4
|
¯0.88
|
Non Debt
Capital Receipt (Disinvestment)
|
¯
|
|
Fiscal
Deficit
|
4.6%
|
¯3%
|
Aggregate
Resource for Centre
|
14.01%
|
¯13.11%
|
4.
Energy Efficiency in Building
Ø Energy Efficiency
Mission – avoided generation
capacity of 7500MW (first four years of 11th FYP)
Ø Energy
Efficiency in Building & Industries
ECBC – National Energy Conservation Building Code
ESCO – Energy Service Company
467 Industries
of 8 Sector – Designated Consumer –
35% of Total
Tradable Energy
Saving Certificate
Ø Residential
Lighting:
a)
Bachat Lamp Yojana(BLY) à CFL to
household
b)
Carbon Credits for Investor
Investor
in Local Region
¯
CDM
project under POA
¯
Investor
gets Carbon Credits
|
CDM
Clean
Development Mechanism
POA
Program of
Activities
|
CLASSROOM:
Bachat Lamp Yojana (BLY)
ü The Aim to replace
Incandescent Lamps in households with Energy efficient CFL (by providing CFL @
the cost of Incandescent lamp). The cost difference will be covered by the sale
of CER (Certified emission rights) under the CDM (Clean Development Mechanism)
of Kyoto protocol.
ü Program by Government of India
ü Implemented through BEE (Bureau of Energy Efficient) under
Ministry of Power.
ü One CER is equivalent to one tonne of carbon-di-oxide (tCO2e).
ü BLY program implemented from February 2009.
Ø Oil &
Natural Gas
o Import component of Domestic Oil Consumption = 77%
o Import component of Domestic NG consumption = 19%
Ø Power
100 GW capacity creations (28GW to be
completed within 11th plan)
Ø Coal - (900 – 1000 mT)
Ø Renewable
Energy:
o National Solar
Mission – 22k MW (by 2020)
o C-WET – Wind Potential – 49k MW
o By 2019
Cost of Solar electricity generation =
Electricity by coal generation.
(Currently: Solar power cost = 6 times thermal
power)
5.
Managing the Environment
Ø The study of Economics of Ecosystems and
Biodiversity (TEEB)
Ø Treatment, Storage & Disposal Facilities for
hazardous waste management (TSDF)
Ø Cumulative Environment Impact Assessment (CEIA) for vulnerable regions.
Ø India: Mega
Biodiversity – 4 Bio Hot Spot
i.
Himalaya
a.
Alluvial
grassland
b.
Subtropical
c.
Broad leaf
forest
d.
Alpine meadow
ii.
NE of India (part of Indo-Burma hotspot)
a.
2 million km^2
iii.
Western Ghats – endemic
assemblage of plant, reptile, amphibians
iv.
Andaman & Nicobar – island chain (allied to sunda land hotspots of SE
asia)
Ø Biodiversity, Marine
Environment and Wildlife
Biodiversity Act, 2002 and Biodiversity Act,2004
assigning adequate importance of community conservation and management of bio-resources
for the benefit of all stakeholders.
6.
National Manufacturing plan
To increase manufacturing sector growth to 12-14%
over the medium term to make it the engine of growth. It will enable it to
contribute 25% of GDP by 2025.
To Provide
|
Sectors
|
Large
Employment
|
Textile&
Garment, Leather & Footwear, Gems & Jewelry, Food Processing
Industries, Handloom
|
Technology
Capabilities
|
Machine
tools, IT Hardware & Electronics
|
Strategic
Security
|
Telecom
Equipment, Aerospace, Shipping, Defence Equipment
|
Energy
Security
|
Solar
Energy, Clean Coal Technology, Nuclear Power Generation
|
Infrastructure
Growth
|
Heavy
Electrical Equipment, Heavy transport, earth moving and mining equipment.
|
Competitive
advantage
|
Automotive
sector, pharmaceuticals and Medical equipment.
|
7.
Health Sector
FYP
|
11th
(2007-12)
|
12th
(2012-17)
|
Total Health
Expenditure
|
1.8% of GDP
|
2.5% of GDP
|
Major Health
issues
1.
AIDS control
2.
Cancer control
3.
Fluorosis
4.
Human Rabies
control
5.
Leptospirosis
8.
Education & Skill Development
-
Early Childhood
Care and Education (ECCE)
-
Monitoring and
Evaluation mechanism of SSA & MDMS
-
Infrastructure
for Education through MGNREGA
-
Adult Literacy
with Sakshar Mission (Women /SC/ST)
9.
Social & Regional Equity
-
Backward Regions
Grant Fund (BRGF)
-
Border Area
Development Programme (BADP)
-
Hill Area
Development Programme(HADP)
-
Kalahandi,
Bolangir & Korapur (KBK)
-
Bihar Special
Plan
-
Bundelkhand
Special Package
-
Integrated
Action Plan for Left wing Extremism
-
Speedy implementation
of PESA
-
Speedy
implementation of FRA
