When was the First Five-Year Plan launched in India?

The correct answer is 1951.

Key Points

• The First Five-Year Plan of India was launched in 1951 and covered the period from 1951 to 1956.
• It was based on the Harrod-Domar Model, which emphasized investment and savings as the key to economic growth.
• The primary focus of the First Five-Year Plan was on agriculture, irrigation, and energy to address food shortages and boost rural development.
• The plan aimed at achieving a growth rate of 2.1% annually, but India successfully achieved a growth rate of around 3.6%.
• The Planning Commission, established in 1950, was responsible for formulating and overseeing the implementation of the Five-Year Plans.

Additional Information

• Five-Year Plans in India
  • India adopted the concept of centralized economic planning inspired by the Soviet Union.
  • The Planning Commission was established under the leadership of Prime Minister Jawaharlal Nehru to implement the Five-Year Plans.
  • Each plan targeted specific sectors such as agriculture, industry, and social development based on national priorities.
  • The Five-Year Plans continued until 2017, when they were replaced by the NITI Aayog's Three-Year Action Agenda.
• Harrod-Domar Model
  • This economic model emphasizes the importance of savings and investment in achieving economic growth.
  • The model assumes that economic growth is directly proportional to the savings rate and inversely proportional to the capital-output ratio.
  • It was used as a foundational framework for India's First Five-Year Plan.
• Planning Commission
  • Established in 1950, the Planning Commission was tasked with assessing resources and formulating India's Five-Year Plans.
  • The commission worked under the chairmanship of the Prime Minister and included experts from various fields.
  • It was replaced by NITI Aayog in 2015 to better align with contemporary needs.
• Focus of the First Five-Year Plan
  • The plan prioritized agriculture due to severe food shortages in the post-independence period.
  • Key projects included the development of irrigation systems like the Bhakra Nangal Dam and energy initiatives.
  • It also focused on land reforms and rural development to improve livelihoods in the countryside.