India has achieved self-sufficiency in almost all basic and capital good industries and consumer good industries. There is a considerable rise in net domestic product, saving and investment. Self sufficiency in food grain production is achieved. There is a good deal of diversification in industrial structure.
STRATEGY PLANS :
1. Nehru-Mahalanobis Model of Growth: Prof. P.C Mahalabonis is under the guidance of Prime Minister Jawaharlal Nehru developed the heavy industry model based on the Soviet experience. This model is popularly known as Nehru-Mahalanobis model formed the basis of the second plan. Jawaharlal Nehru emphasised that “The development of heavy industry in synonymous with industrialisation”. Mahalanobis was of the opinion that without adequate investment in basic heavy industries, it would not be possible to achieve a rapid self reliant economic growth. to achieve rapid economic growth and self reliance, it is necessary to give the highest priority to basic capital goods industries in the development strategy of a plan. It was during the second plan major steel plants were set up at Durgapur, Bhilai and Rourkela. ONGC, Ranchi Heavy Engineering Corporation, Neyveli Lignite Corporation were also set up during this plan.
2. Gandhian Model of Growth: Gandhi called his ideal society Sarvodaya. It is a society that ensures the welfare and well-being of all its members. It emphasizes is on all the three components of well being material, mental and more spiritual he believed that “India lives in its villages”. This plan was based on truth and nonviolence. village is considered as the focal point of development and it is considered to be self-sufficient and self regulating economy. Importance given to small scale and cottage industries to reduce unemployment. Mechanization was opposed as it would displaced people out of employment.
3. Wage Goods Strategy of Growth: According to Vakil and Brahmananda, for removal of poverty, promotion of economic growth or capital accumulation alone in is not enough. “The way out of poverty is, therefore, to pay immediate attention to making good the capital gap in respect of wage goods capacity.
4. Rao- Manmohan Model of Growth: This growth model was introduced in 1991 with emphasis on privatisation and globalisation. There was severe economic crisis since 1990 in the Indian economy issues such as low foreign exchange reserves, balance of payments problem, public sector undertaking losses compelled the then Finance Minister Manmohan Singh and Prime Minister P.V Narasimha Rao to initiate various reforms. A market driven and pattern of development was adopted. Manmohan model of development in emphasized a bigger role for the private sector. A strategy of export led growth was propagated rather than import substitution.
5. Providing Urban-Amenities in Rural Areas: A strategy of developing rural areas this model of development was initiated by the former President APJ Abdul kalam. His vision was to transform rural areas and bring it on par with urban areas. Dr. A.P.J Abdul kalam visualised for connectivities namely physical electronic knowledge that would lead to economic connectivity of rural areas. In the first phase The ministry of Rural development implemented seven pirate projects from 2004 to 2005 and 2006 to 2007 with a total outlay of rupees three billion in the states of Assam, Andhra Pradesh, Bihar, Maharashtra, Rajasthan, Orissa and uttar Pradesh. The scheme was also relaunched as a central government scheme during the remaining period of Eleventh five- year plan.
6. Five year plans: From 1947 to 2017, the Indian economy was premised on the concept of planning. This was carried through the Five-Year Plans, developed, executed, and monitored by the Planning Commission (1951-2014) and the NITI Aayog (2015-2017). With the prime minister as the ex-officio chairman, the commission has a nominated deputy chairman, who holds the rank of a cabinet minister. The first year plan was Harrod – Domar model of development economics. FYP had a target of 2.1% PA growth in national income. Top priority was given to the development of agricultural sector. The idea was agricultural development would lead to higher rate of economic growth.
ACHIEVEMENTS:
1. A Higher Growth Rate: The Indian economy has reached rapid development in all sectors. India’s macroeconomic performance has been only moderately good in terms of GDP growth rates.
2. Increase in National Income: The national income of India has increased manifold. The average annual increase in national income was registered to be 1.2% from 1901 to 1947, 3% in 1950-70, 4% in 1970-80, 5% in 1980-90 and 5.8% in 1980-81 to 2000-01. the Gross income is estimated to have risen by 7% during 2016-17 in comparison to the growth rate of 8% in 2015-16.
3. Increase in per capita: Before independence increase in per capita income was almost zero. But after the adoption of economic planning in free India per capita income has continuously be increased.
4. Growth of Economic infrastructure: India’s performance in building up the necessary economic infrastructure is really praiseworthy At the Inception of economic planning, road kilometre was 4 lakh km. India has now more than 3 million km of road network making it one of the largest in the world.
5. Development of Basic and Capital Goods Industries: Major area of success of Indian planning is the growth of basic and capital goods industries. With the adoption of the Mahalanobis strategy of the development during the second plan period some basic and capital good industries like iron and steel witnessed spectacular growth.
6. Higher Growth of Agriculture: The most significant aspect of India’s five year plans is that their overall rate of growth of food production has now exceeded the rate of growth of population. Although in the early years of planning agricultural performance was measurable resulting in the emergence of food crisis.
7. Savings and Investment: The rise in the domestic savings rate from 10 % of GDP (Gross Domestic Capital) at the initial stages of planning to around 19% in 1980-81 is definitely impressive. The GDP of India has started to increase step by step in the following years and it rose to 36% in 2006 to 2007.
Those strategy plants also faced major failures, in spite of planning, poverty also exists and unemployment has risen. Inequalities of income have not been reduced. There is unequal land ownership, land reforms are inadequately implemented.
