Five Year Plans of India

In our country the five year plans are  developed, executed and monitored by the Planning Commission. The eleventh plan has completed its term on March 2012 and we are currently under 12th Five Year Plan. Lets have a look at a brief introduction of all Five Year Plans of India.

1st Plan : 1951-56

•   Priority giving to Agriculture and Irrigation.
•   "Harrod - Domar" growth model adopted.
•  This is the only plan in which Prices Fell.

2nd Plan : 1956-61

•   PC Mahalanobis prepared this Plan. Priority given to basic and heavy industries.
•   Bhilai, Rourkela and Durgapur Steel Plants, ONGC, Ranchi Heavy Engg. Corporation, Neyveli Lignite Corporation, Multi-purpose projects - Nagarjuna Sagar, Bhakra Nangal, Hirakud started during this Plan.
•   Deficit financing Started in this plan.
•   "Socialist pattern of society" is accepted as a goal.

3rd Plan : 1961-66

•  This plan is a Failure. Food output Fell. i.e., became negative.
•  Bokaro Steel Plant in 1964.
•  Severest drought in 100 years, occurred in 1965-66.
•  China's and Pakistan's innovations.
•  Rupee devalued in June 1966 (devaluation was first done in 1949).

During 1966-69 : Three Annual Plans, plan holiday.

•  Green Revolution in 1966 Kharif.
• 14 Banks nationalized in July 1969.

4th Plan - Aim : 1969-74

• Poverty Removal, Growth with stability with distributive justice, Self-reliance
• Gadgil Formula : It was followed since 4th plan for central assistance for state plans. This formula was modified by NDC in Dec. 1991 when Pranab Mukherjee was the Dy. Charman, Planning Commission. Hence it became Gadgil - Mukherjee formula since 8th Plan : "Planning from below" started from 4th Plan.
• "Garibi Hatao" slogan in 1971 Elections.
• Privy purses were abolished in 4th Plan.

5th Plan - Aim : 1974-79

• Poverty removal became distinct objective for the first time. DP Dhar drafted.
• "Minimum Needs Programme" launched.
• Command Area Development Programme was started in 1974-75 to utilise water in major and medium irrigation projects in an optimum manner.
• Oil crisis : 1973 Sept.
• 20 point programme replaced 5th plan, discontinued 1 year in advance.

6th Plan : 1978-83

• Proposed by Janata party but it was defeated in elections and could implement Rolling plan for 2 years for 1978-80. Prof. DT Lakdawala was the Dy. Chairman, Planning Commission.
• The idea "Rolling Plan" was taken from Japan.
• "Rolling Plan" concept coined by Gunnar Myrdal.
• "Hindu rate of Growth" crossed from 5th plan. This concept was coined by Prof. Raj Krishna (Growth Rate 3% to 3.5%)

6th Plan - Aim : 1980-85

• Poverty eradication.
• IRDP, TRYSEM, NREP launched during this Plan.
• Visakhapatnam Steel Plant (Andhra Pradesh), Salem (Tamil Nadu) Bhadravathi Steel Plants were built.

7th Plan : 1985-90

• Food, Work, Productivity, "Jawahar Rozgar Yojana" launched in April 1989.
• Vakil and Brahmananda's wage good strategy adopted in the 7th Plan.

8th Plan : 1992-97

• Indicative planning : Based on the model of John.W.Muller.
• This plan achieved highest growth rate of 6.8%.
• "Indicative planning" implemented first in France in 1947-50.

9th Plan - Aim : 1997-2002

• Human resources development, growth with social justice and equality, agricultural rural development, important role to private sector.

10th Plan : 2002-07

• Growth rate target 87%, Achieved 7.8%
• Highest in the entire planning era : 5 Crore employment, largest allocation to energy.

11th Plan : 2007-12

• Theme : "Faster and more Inclusive Growth"
• Total proposed outlay : Rs. 36,44,718 Crores (doubled)
• Union Government Rs. 21,56,571 Crores (59.2%)
• States Rs. 14,88,147 Crores (40.8%)
• Approach paper to 11th Plan approved by the Planning Commission on 18-10-2006.
• 52nd National Development Council approved the Draft Plan on 09-12-2006.
• 54th National Development Council approved in its meeting on 19-12-2007
• 55th National Development council meet held on 24-07-2010
• Central Gross Budgetary Support. Rs 14,21,711 Crores.
• This is centre's support to plan.
• Midterm Review of the 11th plan is done by Planning commission on 23-03-2010, and the 11th plan growth target is reduced from 9% to 8.1% (It projects the growth rate for 20-09-10, 20-10-11,   20-11-12 as 7.2%, 8.5% and 9% respectively. Also to increase the outlay on infrastructure sector from the present $ 500 billion in 11th Plan to $ 1 Trillion in 12th Plan.

12th Plan : 2012-17

• This plan’s focus is on instilling “inclusive growth”.
• The plan is concentrated to encourages the development of India’s agriculture, education, health and social welfare through government spending.
• It is also expected to create employment through developing India’s manufacturing sector and move the nation higher up the value chain.
• Our PM Manmohan Singh, however, warned that maintaining fiscal discipline is important as well.

Banking Material for IBPS RBI Exams

RBI : IMPORTANT  INFORMATION

1.Establishment on April 1, 1935 in accordance with the provision of the Reserve Bank India Act, 1934.
2.Central office at Mumbai since inception.
3.Though originally privately owned, since nationalization in 1949 fully owned by the Government of India.
The preamble prescribes  the objective as : “…to regulate the issue of bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operated the currency and credit system of the country to its advantage.”

Central board :
1. Appointed / nominated by the central Government for a period of 4 years.
2. Constitution: Official Directors:
Full-Time: Governor and not more than four deputy governors.
Non-official Directors:
Nominated by Government: Ten directors from various field and one government official.
Others: Four Directors – one  each from four local boards.

Functions :General superintendence and direction`s of the Bank`s affairs.

Local boards:
a) One each for the four regions of the country in Mumbai, Calcutta (Kolkata), Chennai and New Delhi.
b) Membership: Consists of 5 members each, Appointed by central government. For a term of 4 years.
c)Functions; To advice the Central board on local matters and to represent territorial and economics interests of local cooperative and indigenous banks: to perform such other functions as delegated by Central board from time to time.

Umbrella Acts
1. Reserve Bank of India Act, 1934 : Governs the Reserve Bank functions.
2. Banking regulation act, 1949 governs the financial sector.

Acts governing specific functions
a. Public debt act, 1944/Government Security Act (proposed) : Governs government debt market .
b. Securities Contract (Regulation) Act, 1956 : Regulates government security market.
c. Indian coinage Act , 1906 : Governs currency and coins,
d. Foreign Exchange Regulation Act, 1973/Foreign Exchange Management Act, 1999:Governs foreign exchange market.

Acts governing Banking operations
a. Companies Act ,1956 :Governs bank as companies.
b. Banking companies (acquisition and transfer of undertakings) Act 1970/1980 Relates to nationalization of banks.
c. Banker`s books evidence act
d. Banking secrecy act
e. Negotiable instruments ACT ,1881

Acts Governing Individual Institutions
1. State Bank of  India Act , 1954
2. Industrial development Bank of India
3. National Bank for Agriculture rural development ACT
4. National Housing Bank act
5. Deposit insurance  and  credit guarantee Cooperation Act

Monetary Authority:
1. Formulates, implements and monitor the monetary policy .
2. Objective: Maintaining price stability and ensuring adequate flow of credit to productive sector.

Manager of Exchange control:
1. Manages the foreign exchange management act, 1999.
2. Objective : To facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

Issue of currency:
a. Issues and exchange or destroys currency and coins not fit for circulation.
b. Objective : to give the public adequate quantity of supplies of currency notes and coins in good quantity .

RBI Related functions:
1.Banker to the government : Performs merchant banking functions for the central and state governments also acts as their banker.
2.Banker to banks:  Maintains banking accounts of  scheduled banks.

Offices:
Has 29 regional offices, most of the in state capitals.
Training stabilities.

SUBSIDIARIES:
Full owned: National Housing Bank(NHB), National Bank of Agriculture and Rural development (NABARD), Deposit Insurance and Credit Guarantee (DICGC), Bharatiya  Reserve Bank Note Mudra Private Limited (BRBNMPL)
Majority stake :State bank of India.
Minority stake: Infra-structure Development Finance Company (IDFC),Securities Training Corporation of India (STCI), Discount and Finance House OF India (DFH).

Customer service:
Help desks: in all departments and all offices to give general guidance to public.

Regulations review Authority : constantly reviews rules and regulations to make them more customer friendly.