Economic Reforms Essay

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Economic Reforms [5 Year Plans] The five year plans (FYPs) are formulated, implemented and supervised by the Planning Commission, which is an institution in the Government of India. The FYPs determine the performance and progress of the Indian economy. Jawaharlal Nehru, the first Prime Minister, was the head of the first Planning Commission (PC), set up in 1950. The PC report was tabled in the Parliament in 1951, and the first FYP was based on Harrod-Domar model. First FYP (1951-1956) Objectives: Primary aim was to improve the standard of living of the people of India post-Independence and partition. Focus on 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. Community and agriculture development, Energy and irrigation, Communications and transport, Industry, Land rehabilitation, Social services. Target of 2.1% GDP for every year of the plan. Positives of the Plan: There were improvements in roads, civil aviation, railways, Telegraphs, posts, manufacture of fertilizers, irrigation system, electrical equipment. Target of 2.1% surpassed—3.6% GDP. Soil conservation promoted. Criticisms about the Plan: No development of private industries. Focus was on a few industries. Impact: Small scale industries encouraged. Second FYP (1956-1961) Objectives: Main objective was rapid industrialization. To increase by 25% the national income, To make the country more industrialized, To increase employment opportunities, encourage domestic production of industrial products, to determine optimum allocation of investment between productive sectors in order to maximize economic growth. Positives of the Plan: Development in Mining and industry, Community and agriculture development, Power and irrigation, Social services,
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