Five-Year Plans (FYP)

The concept of Five-year plans was adopted to improve the economic condition of the country and do the economic planning in the country. The Bombay Plan proposed by the various industrialists of the country in 1944 led to the decision of adopting the FYP for economic planning. The concept of FYP was taken from The Soviet Union and introduced first by Joseph Stalin. FYP was adopted in India in the year 1951 and continued till 2017 by the First PM of India, Jawaharlal Nehru.

Concept of FYP and its objectives:

The concept of FYP followed the following:

• The government of India prepared a two-part document that included the non-plan budget and the plan budget. State governments also prepared a similar document.
• The non-plan budget was used for the yearly expenditure of the center and the state whereas the planned budget was used on the items or priorities that were set for that particular FYP.
• The work of implementing, deciding the priorities, and regulating the FYP was done by a body called the Planning Commission which was set up in 1950.

Objectives of FYP are as follows:

• Increase the growth rate of the nation and in turn, improve the standard of living of the people
• Lead the nation toward prosperity
• Make India self-dependent and self-reliant
• Industrialization of the country
• Reduce the gap between the rich and the poor
• Efficient utilization of the resources

From 1951 to 2017 India launched many FYPs. Let us see various FYPs in detail below.

After India gained independence it was necessary to improve the economic condition of the country and lead India towards development as the British government left India hurriedly and in utter chaos. Thus everything was to needed to be managed wisely and judiciously. When India got its constitution, India became a republic and all the laws of the country were now managed and well documented but this did not lead to the economic development of the nation. Thus there was a need for something else to do this work.