General Knowledge for SSC Exams (National Development Council And Five Year Plans)

General Knowledge for SSC Exams (National Development Council And Five Year Plans)

National Development Council

  • All the plans made by the Planning Commission have to be approved by National Development Council first. It was constituted to build co-operation between the States and the Planning Commission for economic planning.

  • It is an extra-constitutional and extra-legal body.

  • It was set up on August 6, 1952, by a proposal of the Government. The PM is the ex-officio chairman of NDC. Other members are Union Cabinet ministers, Chief’ Ministers & Finance Ministers of all States, Lt. Governors of Union Territories and Governors of Centrally Ruled States.

State Planning Boards

  • Apex planning body at State level is generally a State Planning Body comprising the Chief Minister as Chairman, Finance and Planning ministers of that State and some technical experts.

  • District Planning Committee is also there comprising both official and non-official members.

Five Year Plans

First Five Year Plan (1951-56)

  • It was based on Harrod-Domar Model.

  • Community Development Program was launched in 1952.

  • Two- fold objectives were there:

  • To correct the disequilibrium in the economy caused by 3 main problems- influx of refugees, severe food shortage and mounting inflation.

  • To initiate a process of all-round balanced development to ensure a rising national income and a steady improvement in living standards.

 

  • Emphasized on agriculture, price stability, power & transport.

  • It was more than a success, because of good harvests in the last two years.

Second Five Year Plan (1956-61)

  • Also called Mahalanobis Plan after its chief architect. It was based on 1928 Soviet Model of Feldman.

  • Its emphasis was on economic stability. Agriculture target fixed in the first plan was almost achieved. Consequently, the agriculture sector got low priority in the second five year plan.

  • Its objective was rapid industrialization, particularly basic and heavy industries such as iron and steel, heavy chemicals like nitrogenous fertilizers, heavy engineering and machine building industry.

  • Besides, the Industrial Policy of 1956 emphasized the role of Public Sector and accepted the establishment of a socialistic pattern of the society as the goal of economic policy.

  • Advocated huge imports which led to emptying of funds leading to foreign loans. It shifted basic emphasis from agriculture to industry far too soon. During this plan, price level increased by 30%, against a decline of 13% during the First Plan.

 

Third Five Year Plan (1961-66)

  • At its conception time, it was felt that Indian economy has entered a take-off stage. Therefore, its aim was to make India a ‘self-reliant’ and ‘self-generating’ economy.

  • Also, it was realized from the experience of first two plans that agriculture should be given the top priority to suffice the requirements of export and industry.

  • The other objectives of the plan included the expansion of basic industries, optimum utilization of country’s labour power and reducing the inequalities of income and wealth.

  • Relied heavily on foreign aid (IMF).

  • Complete failure due to unforeseen misfortunes, viz. Chinese aggression (1962), Indo-Pak war (1965), severest drought in 100 years (1965-66).

Three Annual Plans (1966-69)

  • Plan holiday for 3 years. The prevailing crisis in agriculture and serious food shortage necessitated the emphasis on agriculture during the Annual Plans.

  • During these plans a whole new agricultural strategy involving wide-spread distribution of High-Yielding Varieties of seeds, the extensive use of fertilizers, exploitation of irrigation potential and soil conservation was put into action to tide-over the crisis in agricultural production.

  • During the Annual Plans, the economy basically absorbed the shocks given during the Third Plan, making way for a planned growth.

Fourth Five Year Plan (1969-74)

  • The Fourth Plan set before itself the two principal objectives- ‘growth with stability’ and ‘progress towards self-reliance’

  • Main emphasis on agriculture’s growth rate so that a chain reaction can start.

  • Fared well in the first two years with record production, last three years failure because of poor monsoon.

  • Had to tackle the influx of Bangladeshi refugees before and after 1971 Indo-Pak war.

  • During the planning period, prices increased by about 61%.

Fifth Five Year Plan (197479)

  • The fifth plan prepared and launched by D.D. Dhar proposed to achieve two main objectives viz, ‘removal of poverty’ (Garibi Hatao) and ‘attainment of self reliance’, through promotion of high rate of growth, better distribution of income and a very significant growth in the domestic rate of savings.

  • National Program of Minimum Needs was initiated in which primary education, drinking water, medical facilities in rural areas, nourishing food, land for the houses of landless labourers, rural roads, electrification of the villages and cleanliness of the dirty suburbs were included.

  • The plan was terminated in 1978 (instead of 1979) when Janta Govt. came to power.

Rolling Plan (1978-80)

  • There were 2 Sixth Plans. One by Janta Govt. (for 78-83) which was in operation for 2 years only and the other by the Congress Govt. when it returned to power in 1980.

  • The Janta Govt. Plan is also called Rolling Plan.

  • The focus of the plan was enlargement of the unemployment potential in agriculture and allied activities, encouragement to household and small industries producing consumer goods for consumption and to raise the incomes of the lowest income classes through minimum needs program.

Sixth Five Year Plan (1980-85)

  • Objectives: Increase in national income, modernization of technology, ensuring continuous decrease in poverty and unemployment, population control through family planning, etc.

Seventh Five Year Plan (1985-90)

  • The seventh plan emphasized policies and programs which aimed at rapid growth in food-grains production, increased employment opportunities and productivity within the framework of basic tenants of planning.

  • It was a great success, the economy recorded 6% growth rate against the targeted 5%.

Eighth Five Year Plan (1992-97)

  • ‘The eighth plan was postponed by two years because of political upheavals at the Centre and it was launched after a worsening Balance of Payment position and inflation during 1990-91.

  • The plan undertook various drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6%.

  • Some of the main economic performances during eighth plan period were rapid economic growth, high growth of agriculture and allied sector, and manufacturing sector, growth in exports and imports, improvement in trade and current account deficit.

  • The most notable feature of the eighth plan period was that the GDP grew at an average rate of 6.8% exceeding the target growth rate of 5.6%.

Ninth Five Year Plan (1997-2002)

  • It was developed in the context of four important dimensions: Quality of life, generation of productive employment, regional balance and self-reliance.

Appraisal of The Ninth Plan

  • Growth rate of GDP during the plan was 5.4% per annum as against the target of 6.5%. Agriculture grew by 2.1% as against the target of 4.2% p.a

  • Exports grew by 7.4% (target was 14.55%) and imports grew by 6.6% (target was 12.2% p.a.).

  • Services grew at the rate of 7.8% p.a.

Tenth Five Year Plan (2002- 2007)

  • Its objectives included achieving the growth rate of 8%, reduction of poverty ratio to 20% by 2007 and to 10% by 2012, universal access to primary education by 2007, increase in literacy rate to 72% within the plan period and to 80% by 2012.

The Tenth Five-Year Plan (2002-07) was approved by the National Development Council on 21st December 2002. Its target is reduction in the poverty ration from 26 per cent to 21 per cent, by 2007; Decadal Population Growth to reduce from 21.3 per cent in 1991-2001 to 16.2 per cent in 2001-11;Growth in gainful employment, at least, to keep pace with addition to the labour force; All children to be in school by 2003 and all children to complete five years of schooling by 2007; Reducing gender gaps in literacy and wage rates by 50 per cent; literacy rate to increase from 65 per cent in 1999-2000, to 75 per cent in 2007; Providing potable drinking water to all villages; Infant Mortality Rate to be reduced from 72 in 1999-2000, to 45 in 2007; Maternal mortality ratio be reduced from four in 1999-2000, two in 2007; Increase in forest/ tree cover form 19 per cent in 1999-2000, to 25 percent in 2007; and cleaning of major polluted river stretches.

Eleventh Five Year Plan (2007-2012)

  • Accelerate growth rate of GDP from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016-17

  • Increase agricultural GDP growth rate of 4% per year to ensure a broader spread of benefits

  • Reduce dropout rates of children from elementary school from 52.2% in 2003-04 to 20% by 2011-12.

  • Increase literacy rate for persons of age 7 years or more to 85%.

  • Reduce infant mortality rate (IMR) to 28 and maternal mortality ratio (MMR) to 1 per 1000 live births.

  • Raise the sex ratio for age group 0-6 to 935 by 2011-12 and to 950 by 2016-17.

  • Ensure electricity connection to all villages and BPL households by 2009 and round the clock power by the end of the Plan.

  • Increase forest and tree cover by 5 percentage points.
     

12th Five Year Plan (2012-2017)

The draft Approach to the 12th Five Year Plan has been approved by the National Development Council (NDC). The theme of the approach paper is “faster, sustainable and more inclusive growth”. The plan proposes a growth rate of a 9 percent. Emphasis is on inclusive development which focuses on agriculture and crucial social sectors including health, education, women and children. There is also an emphasis on strengthening institutes and delivery mechanisms that takes the benefits of high growth to the poor.

12th Plan - Target
GDP - 9.0% 9.5%
 

Five Year Plans In India At A Glance

Plan Period Model Main Objectives Growth Rate Special Features
1st 1951-56 Harold Domar Development of Agriculture 3.6% It was the lst Plan onsocial development i.e.Community Develop-ment (CDP)-1952
IInd 1956-61 Mahalnovis Rapid Industrialisation 4.2% Started Industrialization

(These two Plans were most successful plans in India)

IIIrd 1961-66 John Sandy and S.Chakravarty Self-Reliance and self sustained economy 2.7%  (5-6 wastarget) 1st official declared fail
  1966-69  Plan Holiday or Annual Plan     1. Green Revolution-1966-67

2. Devaluation of Currency-(2nd devalution in India of currency) 1st was in 1949.

IVth 1969-74 Allen S.e  Mann and Ashok Rudra Self-reliance and growth with stability 3.3% (target was 5.7%) Causes-1971war,1972-73 oil crisis.Important events related with Policy change.
1. Nationalization of Banks in 1969 by Indira Gandhi.
2. MRTP Act - 1969 (Aggressive socialism)
3. J.P. Movement-Indira hatao followed by Garibi hatao by Congress Govt.
Vth 1974-79 Planning Commission Eradication of Poverty “The concept of Rolling Plan” was given by Janta Government  4.8% (target was 4.4% 1. National Emergency-25th June 1975.

2. 1st Non – Congress govt at the Centre 1977 (Janta Govt.)

3. 1st food for work programme by Janta party -1978; it was 1st nationwise programme rather than region wise.
4. 1979 - Congress back on Power. Janta Party stopped the plan.

  1979-80 Plan Holiday-Annual Plan      
VI 1980-85 Planning Commission (emphasis on structural change Employment Same Objective as Vth Plan  5.5% 1. No. of employment schemes were started. (1st serious attempt towards employment generation)

2. 1st time the word

VII 1985-90 Planning Commission (emphasis on Iiberalization) “Modernization of our existing sector and to promote the Modern sector. “Towards 21st Century” slogan was given by PM Rajiv Gandhi - i.e. A Modern Economy  6.0% 1st time the share of public sector in plan outlay was less than 50%. Economic reforms started in India -1991
  1990-92  Annual Plan 1. Bofors issue
2. Economic crisis-1990
3. 3rd devaluation of Curreny-1991
4.New Industrial Policy on 24th July, 1999 by declaring the liberalisation in Indian Economy.
   
VIII 1992-97 John W. Miller (Rao- Manmohan) Human Resources Development (Compe tition)within the country  6.7% (highest till the 8th 1. Highest growth rate
2. The base year was  Plan) Changed to  1991-92
 
     Model) and outside the world) Due to this policy, India
is leading in IT Sector.
   
IX 1997-02  Planning  Commission Equitable distribution and growth with equality due to external 5.4% (it was  factors) 1. Pokahran
2. South East Asia Crisis
3. Kargil war
4. 2001-02 major recession
in the world economy.

Poverty And Unemployment

  • Every third Indian is living below poverty line, estimates an expert group saying that more than 37 per cent of people are poor, ten per cent more than estimated earlier. Among the states, Orissa and Bihar are at the bottom, while Nagaland, Delhi and J&K have the least number of poor, says a report by the expert group, headed by Suresh Tendulkar, former chairman of PM’s Economic Advisory Council.

  • As much as 41.8 per cent of the rural population survive with monthly per capita consumption expenditure of Rs 447, in other words they spend only Rs 447 on essential necessities like food, fuel, light, clothing and footwear.

  • Among urban population, 25.7 per cent are poor, spending Rs 578.8 on essential needs.The group was set up in the wake of growing criticism of the existing official estimates of poverty released by the Planning Commission in 2007. According to

  • the Planning Commission’s recent estimates, poverty in India came down from 35.97 per cent in 1993-94 to 27.54 per cent in 2004-05.

Poverty in India

Year

Poverty Ratio (Per cent)

Number of Poor (Millions)
  Rural Urban Combined Rural Urban Combined
1977-78 53.1 45.2 51.3 264.3 64.4 328.9
1983 45.7 40.8 44.5 252.0 70.9 322.9
1987-88 39.1 38.2 38.9 231.9 75.2 307.1
1993-94 37.3 32.4 36.0 244.0 76.3 320.3
1999-00 27.1 23.6 26.1 193.2 67.1 260.3
2007 21.1 15.1 19.3 170.5 49.6 220.1

Unemployment

It simply means a situation when able and willing people are not getting jobs as per their own capabilities.

Types of Unemployments

Structural Unemployment

  • This type of unemployment is associated with economic structure of the country, i.e., productive capacity is inadequate to create a sufficient number of jobs. Rapidly growing population causes this.

  • This type of unemployment is of long run nature. Indian unemployment is basically related to this category of unemployment.

Under Employment

  • Those labourers are under-employed who obtain work but their efficiency and capability are not utilized at their optimum and as a result they contribute in the production up to a limited level.

  • A country having this type of unemployment fails to exploit the efficiencies of its labourers.
    Open Unemployment

  • When the labourers live without any work and they don’t find any work to do, they come under the category of open unemployment. Educated unemployed and unskilled labour unemployment are included in open unemployment.

  • The migration from rural to urban areas in search of work is very often found in India which is an example of open unemployment.

Disguised Unemployment

  • If a person does not contribute anything in the production process or in other words, if he can be removed from the work without affecting the productivity adversely, he will be treated as disgustedly unemployed. The marginal productivity of such unemployed person is zero.

  • Agriculture sector of underdeveloped/ developing economies possesses this type of unemployment at a large scale.

Frictional Unemployment

  • The unemployment generated due to change in market conditions (change in demand and supply conditions) is called frictional unemployment.

  • Agriculture is the main occupation in India. The supply conditions still depend upon weather’s mood and similarly demand conditions depend upon availability of resources. Any change arising either of any or both creates a diversion from the equilibrium which results in frictional unemployment.

Seasonal Unemployment

  • It appears due to a change in demand based on seasonal variations. Labourers do not get work round the year. They get employed in the peak season of agricultural activities and become unemployed when these activities are over.

  • Indian agriculture ensures employment for only 7-8 months and labourers remain unemployed in the remaining period. This temporary type of employment gives birth to seasonal unemployment.

 

Important Anti-poverty And Employment Generation Programs

Swaranjayanti Gram Swarozgar Yojana (Sgry)

  • Started on April 1, 1999. It has replaced the following programs: o Integrated Rural Development Program (IRDP) : Started in 1978-79.

  • Training Rural Youth for Self-Employment (TRYSEM): Started in 1978-79.

  • Development of Women and Children in Rural Areas (DWCRA): Started in 1978-79.

  • Ganga Kalyan Yojana (GKY): Started in 1997.

  • Million Wells Scheme (MWS): Started in 1989.

  • Supply of Improved Tool-kits to Rural Artisans (SITRA).

  • The yojana takes into account all the strengths and weaknesses of the earlier self-employment programs.

  • Every assisted family will be brought above the poverty line. It is proposed to cover 30% of the rural poor in each block. To target at least 50% Scheduled Castes and Scheduled Tribes, 40% women and 3% disabled.

Pradhan Mantri Gramodaya Yojana (Pmgy)

  • It was introduced in 2000-01 with the objective of focusing on village level development in five critical areas, i.e., primary health, primary education, housing, rural roads and drinking water and nutrition with the overall objective of improving the quality of life of people in rural areas. Rural electrification was added as an additional component from 2001-02.

  • It has the following components :

  • Pradhan Mantri Gram Sadak Yojana (PMGSY): It was launched on Dec 25, 2000 with the objective of providing road connectivity through good all weather roads to all rural habitations with a population of more than 1000 persons by the year 2003 and those with a population of more than 500 persons by the year 2007.

  • Pradhan Mantri Gramodaya Yojana (Gramin Awas): Launched on April 1, 2000, based on the pattern of Indira Awas Yojana, the scheme is being implemented in the rural areas throughout the country with the objective of sustainable habitat development.

  • Pradhan Mantri Gramodaya Yojana (Rural Drinking Water Project)

Sampoorna Gramin Rozgar Yojana (Sgry)

  • It was started on Sept. 25, 2001, with the mergence of the Employment Assurance Scheme (EAS) and the Jawahar Gram Samriddhi Yojana (JGSY). Earlier Jawahar Rozgar Yojana, which started in 1989, was merged with Jawahar Gram Samriddhi Yojana.

  • The objective of the program is to provide additional wage employment in rural areas and also to provide food security.

Swarna Jayanti Shahari Rozgar Yojana (SJSRY)

  • The SJSRY came into operation in Dec, 1997, through a restructuring and streamlining of the earlier urban poverty alleviation programs, the Nehru Rozgar Yojana (NRY), the Urban Basic Services for the Poor (UBSP) and the Prime Minister’s Integrated Urban Poverty Alleviation Program (PMIUPEP).

  • It seeks to provide employment to the urban employed or underemployed living below poverty line and educated up to IX standard through encouraging the setting up of self-employment ventures or provision of wage employment.

Antyodaya Anna Yojana

  • Launched on Dec. 25, 2000. the scheme aims at providing food security to poor families.

  • The scheme contemplates identification of 10 million ‘poorest of the poor’ families and providing them with 25 kg of food grains per family per month at a low price of Rs. 2 per kg for wheat and Rs. 3 per kg for rice.

Annapurna Yojana

  • Inaugurated on March 19, 1999.

  • Initially the scheme provided 10 kg food grains to senior citizens who were eligible fore old age pension but could not get it due to one reason or the other. Later on, it was extended to cover those people who get old age pensions.

  • Food grains are provided to the beneficiaries at subsidized rates of Rs. 2 per kg of wheat and Rs. 3 per kg of rice.

Major Programmes for Poverty Alleviation and Employment Generation at a Glance

  1. Pradhan Mantri Gram Udaya Yojana (PMGY)

  2. Swarnajayanti Gram Swarojgar Yojana (SUSY)

  3. Sampoorna Gramin Rojgar Yojana (SURY)

  4. Prime Minister Rojgar Yojana (PMRY)

  5. Pradhan Mantri Gram Sadak Yojana (PMGSY)

  6. Drought Prone Area Programme (DPAP)

  7. Desert Development Programme (DPAP)

  8. Integrated Waterlads Development Programmes (IWDP)

  9. Antoyada Anna Yojana (AAY)

  10. Swarna Jayanti Shahri Rojgar Yojana (SJSRY)

  11. Valmiki Ambedkar Awas Yojana (VAMBAY)

  12. Mahatma Gandhi National Rural Employment Guarantee Act (MGNRGA)

  13. Jawaharlal Nehru National Umber Renewal Mission (JNNURM).

Agriculture

Importance of Agriculture in India

1. Contribution to GDP

  • Agriculture forms the backbone of Indian economy. It contributes approx. 26 per cent of Gross Domestic Product. It was 55.4 per cent in 1950-51.

  • Though the share of agriculture in national income has come down, even now agriculture contributes a majored share of the national income in India. Further, the share of agriculture in manufacturing and service sector are increasing.

2. Source of Employment

  • Agriculture provides employment to around 65 per cent of the total work-force of the country.

3. Source of Industrial Development

  • Agriculture has been the source of supply of raw material to our leading industries.

  • Many of our small and cottage industries like handloom, weaving, oil crushing, rice husking, etc, depend on agriculture.

4. Importance in International Trade

  • India’s foreign trade is deeply associated with agriculture sector.

  • Value of agriculture exports to total exports of the country has been ranging between 15 to 20 per cent. Besides, goods made with the raw material of agriculture sector also contribute about 20 per cent in Indian exports. In other words, agriculture and its related goods contribute about 38 per cent in total exports of the country.

Green Revolution

First

  • Indian Green Revolution is associated with the use of HYVS (High Yielding Variety Seeds), chemical fertilizers and new technology which led to a sharp rise in agricultural production during the middle of 1960.

  • The term ‘Green Revolution’ was given by American scientist, Dr. William Gande.

  • During the middle of sixties, Indian agriculture scientists developed a number of new high yielding varieties of wheat by processing wheat seeds imported from Mexico. A similar improvement in variety of rice was also observed.

  • The credit of this goes not only to Nobel Laureate Dr. Norman Borlaug, but also to Dr. M.S. Swaminathan.

Second

  • Of all the plans, the sixth five-year plan was hailed as a great success on the agriculture front. As against the annual growth of 3.8 per cent for agriculture, the actual growth rate was 4.3 per cent. The production of food grains in 1983-84 was 152 million tones and was hailed by the Government as the second Green Revolution.

  • While the first Green Revolution from 1967-68 arose from the introduction of HYVS of Mexican wheat and rice, the second Green Revolution from 1983-84 was said to be from the extension in supplies of inputs and services to farmers, agricultural extension and better management.

  • While the first Green Revolution was confined mainly to Punjab, Haryana and Western UP, the second Revolution has spread to the entire North India.

Other Revolutions

Revolution Area
Yellow Revolution Oil seeds
White Revolution Milk
Blue Revolution Fish
Pink Revolution Shrimp/Meat
Brown Revolution Non-conventional energy resources
Grey Revolution Wool
Golden Revolution Horticulture

Minerals

Coal : India ranks 3rd in the world after China and USA in Coal production. Resource wise coalfields of Orissa contain the largest reserves though mostly of inferior quality.

  1. Gondwana coal is located in coalfields occupying the Indian heartland inthe States of WB, Jharkhand, Orissa, Chhattisgarh, MP, Maharashtra, UP and AP.

  2. Tertiary coals occur in Assam, Arunachal Pradesh, Meghalaya and Nagaland.

  3. Brown coal or lignite occurs in coastal areas of TN, Gujarat and Inland basin of Rajasthan.

Chromite : The largest share (about 97%) of the total geographical resources is accounted by Cuttack District in Orissa.
Barytes : The Mangampet deposit occuring in Cuddapah District (Andhra Pradesh) is the single largest deposit in the world
Mica
: India is the world’s leading producer of sheet mica and accoutns for about 60 per cent of global mica trade.
Bauxite : Orissa and AP.
Copper
: Rajasthan is credited with the largest resources of copper.
Gold : Three important gold fields in the country are Kolar Gold Field, Hutti Gold Field (Karnataka) and Ramgiri Gold Field (Andhra Pradesh).
Iron Ore : Iron ore is distributed in Jharkhand, Orissa, Chhattisgarh, Karnataka and Goa.
Manganese : Main deposits of Managanese are Karnataka, followed by Orissa, MP, Maharashtra and Goa.
Tungsten : The main deposits of Tungsten are at Degana, Rajasthan.
Diamong : The main diamond bearing areas are Panna belt in MP, Munimadugu-Banganapalle conglomerate in Kurnool district, Wajrakarur Kimberlite pipe in Anantapur district and the gravels of Krishna river basin in AP.
Gypsum : Rajasthan, Jammu and Kashmir.
Limonite : Beach sand deposits right from Ratnagiri (Maharashtra) to coast in Kerala, T N and Orissa.
Limestone : AP is the leading state followed by Rajasthan, Karanataka, MP.
Magnesite : Uttaranchal (66%) followed by T N (18%) and Rajasthan (14%).
Phosphate Minerals : Phosphorites are located in MP, Rajasthan, Uttaranchal, UP and Gujarat
Lignite : These reserves have been identified in TN, Rajasthan, Gujarat, J&K and Kerala. Lignite reserved at Neyveli are exploited by Neyveli Lignite Corporation Ltd. (NLC). It is completely owned by Government in 1959. NLC has obtained ISO 9001:2000 (Quality Management System), ISO 14001:2004 (Environment Management System), ISO 18001:1999 (Occupational Health and Safety Management System (OHSAS)).

Important Industries Of India

1. Iron & Steel Industry

  • 1st Steel industry at Kulti, near Jharia, West Bengal - ‘Bengal Iron Works Company’ in 1870.

  • 1st large scale steel plant - TISCO at Jamshedpur in 1907 followed by IISCO at Burnpur in 1919 both belonged to private sector

  • The first public sector unit was ‘Vishveshvarayya Iron and Steel Works’ at Bhadrawati.

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