36890325 Planning in India Vo

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Planning Commission in India(9,10,11 Plans)


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WHAT IS A PLAN?

A Plan is a deliberate attempt to spell out how the resources of

a country should be put to use.

It has some general and specific goals, which are to be

achieved within a specific period of time.

The general goals of a Plan are growth, modernization, full

employment, self-reliance and equity. But all Plans may notgive equal importance to all of them.

Each Plan can have some specific goals like improvement of

agriculture. For example our first five-year plan was geared to

improving the state of agriculture and the second to improvingIndustry.


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The Planning Commission was set up in March, 1950 by a

Resolution of the Government of India.

The economy of India is based on planning through its five-year

plans, developed, executed and monitored by the PlanningCommission .

With the Prime Minister as the ex officialChairman, the

commission has a nominated Deputy Chairman, who has rank ofa Cabinet minister. Montek Singh Ahluvaliya is currently the

Deputy Chairman of the Commission.

Planningcommissionofindia


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NINTH FIVE YEAR PLAN(1997-2002)

OBJECTIVES To prioritize rural development

To generate adequate employmentopportunities

To ensure food and nutritional security

To provide for the basic infrastructural

facilities like education for all, safedrinking water, primary health care,transport, energy

To check the growing populationincrease

To encourage social issues like womenempowerment

To create a liberal market for increasein private investments

ACHIEVEMENTS

A combined effort of

public, private, and all

levels of government.

Ensured the growth ofIndia's economy.

Service sector showed fast

growth rate.


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In 2009, Indias GDP was around US$1.2 trillion

India is expected to overtake Italy by 2015,

Germany by 2022, Japan by 2034 and US by

2050

5.1

5.9

7.3 7.37.8

6.56.1

4.4

5.6

8.5

7.5

8.1

7.5

6.7

7.5

8.9

9.6

4.84.3

1.3

0

1

2

3

4

5

6

7

8

9

10

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

%g

rowthoverpreviousy

Sector % of GDP

Services 57.4

Manufacturing 27.3

Agriculture 15.3

Total 100%

Source: Center for Monitoring the IndianEconomy, Government of India and

Confederation of Indian Industries

INDIA OVERVIEW

a. Pertains to Indian financial year from April 1 of one year to March 31 of the next year.As an example, 2009 pertains to April 2008 to March 31, 2009

INDIA

OVERVIEW

INDIA

OVERVIEW

India is the second most rapidly growing economy in the world

Growth is predominantly driven by domestic consumption which comprises over two-thirds ofGDP

GROSS DOMESTIC PRODUCT: 1991-2010


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AGRICULTURE AND RURAL DEVELOPMENT

Focus on improving yields with existing technology

Cultivation practices are improved and critical inputs made available.

Timely availability of water is the most critical element in raising

yields

Expansion of irrigation and also improvement of existing irrigation

systems

Improving management of water resources through watershed

development, covering rain water harvesting in farm ponds and tanks,and methods of ground water recharge.


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AGRICULTURE AND RURAL DEVELOPMENT

Production of foodgrains during 2009-10 is estimated at 216.85million tonnes (MT)

Total public and private investment in agriculture as a percentage of

agricultural

GDP has improved from 14.1 per cent in 2004-05 to 19.5 per cent in

2008-09s

India's agri-export turnover is expected to double in the next five

years, according to APEDA. Agri-export turnover is set to rise to nearly

US$ 18 billion by 2014.


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Womens Empowerment Through Gender Budgeting

1985- Ministry of Human Resource Development set up

Department for Women and Child Development constituted in HRDMinistry

27 major women specific schemes identified for monitoring toassess quantum of funds/benefits flowing to women

The Eighth Plan (1992-97) for the first time highlighted the need toensure a definite flow of funds from general developmental sectors

to women

It commented:

special programmes on women should complement the generaldevelopment programmes. The latter in turn should reflect greater

gender sensitivity


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Holisticapproach to Empowerment

Health

& Nut.

Education

Water& San.

Skills

Technology Credit

Political

Participation

Marketing

Asset base


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Achievements in Women empowerment

Female work participation rate increased from 19.7 per cent

in 1981 to 25.7 per cent in 2001

The number of women in higher education 1.32 million (33.0per cent)

Womens employment in the public sector has also recorded

an increase from 1.5 million (9.7 per cent) in 1981 to 2.8

million


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TENTH FIVE YEAR PLAN(2002-2007)

The Plan was launched when there were both positive and negativefeatures.

Positivebeing, GDP growth rate was at 6.5% p.a.Population growth had declined to less than 2%.

Percentage of people below the poverty line was decreasing.

Literacy rate increased to 65% in 2001. Software and IT Services

emerged as new sectors of strength.

Negatives were that growth had generated less than expectedemployment. The infant mortality rate had stagnated and there wasacute shortage of drinking water.


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OBJECTIVES

An average annual growth rate of 8%

Increase in per capita income at 6.4% p.a.

Enhancement of human well being through an adequate levelof consumption of fixed and other type of consumer goods and

access to basic social services Expansion of economic and social opportunities for

individuals and groups and greater participation in decisionmaking.

To transform the country into the fastest growing economy of

the world

Forests and environment

Science and technology


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Xth Five Year PlanQuality Elementary Education

Facts - Out of200 million Approx(6-14yrs) only 66% enrolled &

average attendance is as low as 50 %.

Strategy to Achieve

Filling of Teacher Vacancy on priority

Control Transfer to local body such as Panchayat of Schools &

Teacher who directly interest in performance (73rd & 74th

Amendments of constitution)

Vocationalisation of curricula

Total Anticipated Expenditure is INR 15,000 Cr on primary

education


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Xth Five Year Plan8 % GDP Growth

The Principal reason why 8% GDP growth is feasible in 10thplan is that the scope forrealizing improvement in efficiency is very large in both public & private sector

Strategy to Achieve

Reducing Idle capital stock

-Full Emphasis completion of partial / On-going project

-Rapid privatization of public sector enterprises those

which are working well below capacity

-Legal/procedural changes for facilitating quick transfer of

ownership of assets

Govt. Reforms 1 . Decentralization of the functions of the Government

2 . Civil Services reformPolitical will & Minimum consensus


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Xth Five Year PlanEmploymentgeneration & Poverty Reduction

Facts-Unemploymentstoodataround 9%,equivalentto 35 millionpeople.

Targetset -50 Millionemploymentopportunity & Reducingpovertyratio by 5 %

point

StrategytoAchieve

8 % GDP Growth

Shiftfromsettingonlynationaltargettosettingnational + backwardstatetargetto

reduceinter-stateinequalitieswith seriousconsequencesforregional balance &

national harmony

Statewise breakupofbroaddevelopmenttargetsincludingtargetforgrowth rates

& socialdevelopment

Agriculture developmentviewedascoreelementoftheplanto benefitwildlyspreadruralpoor.


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Xth Five Year Plan

Congenial InvestmentenvironmentReduction share/role of public sector in economy , the importance of financial

Intermediaries has been increased hence it is necessary to create congenial

Investment environment that will facilitate growth.

Strategy to Achieve Revisiting subsidised interest rate concept

Efforts directed toward widening and deepening of capital market with

adequate regulatory over-sight

More investor friendly flexible economic reforms

Mobilizing and optimizing all financial resources


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11th Five YearPlan(2007-2012)

Main Objective -Inclusive Growth

Strategy

Focus on basic services education, skill development, health,water supply and sanitation, urban development

Greatly increased Federal funding for these sectors

Renewed emphasis on agriculture

Policy support for PPP in infrastructure


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Monitorable Targetsin 11th Plan

Monitorable Targets Reflect multi-dimensional socio-economic objectives of inclusive growth

27 National Targets in 6 major categories

Income GDP growth from 8% to 10 %

Poverty: reduce headcount by 10%

Education 8 %to 19% (Literacy to rise by 85%, reduce dropout rates from 52%

20 %) Health (Reduce mortality 7 Women mortality by 1to 1000 lives)

Women &Children (33% Direct & Indirect of all government schemes)ss

Infrastructure (Electricity, Telephones, Broadband)

Environment (Increase 5% of forest cover)

13 State specific targets GDP and Agriculture growth

Work Opportunities 5% Approx 7 Cr

Drop Out Rate, Literacy and Gender Gap in Literacy

Child Malnutrition, Anemia in Women and Girls

Child Sex Ratio


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Resource Allocationin11th PlanSectoral Allocation: 10th and 11th Five Year Plan

(in per cent to total Plan outlay)

S. N. Sectors 10th Plan (2002-07) 11th Plan (2007-12)

1 Education 7.68 19.29

2 Rural Devt. & Panchayati Raj 10.70 13.39

3 Health & Family Welfare 5.62 8.71

4 Agricultureand Irrigation 6.22 8.555 SocialJustice 4.47 6.35

6 Physical Infrastructure 10.94 9.01

7 Scientific Departments 3.66 4.68

8 Energy 5.81 4.04

Total Priority Sectors 55.10 74.039 Others 44.90 25.97

Total 100.00

(8,13,778)

100.00

(14,21,711)

Note: (a) Figures in the parentheses are INR in Crore. (b) Source: 11thFive Year Plan (2007-1012), GoI, pp 51


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INDIA OVERVIEWINDIA

OVERVIEW

INDIA

OVERVIEW

FDI

Overseas companies can now operate 100%-owned subsidiaries throughgreenfield investments or acquisitions across almost all industries

Industries with restrictions on FDI include telecom, media, retail and airports In most cases, no restrictions on remittance of dividends, other payments and

sales proceeds of an overseas divestment

InternationalFinancial Systems

Accounting standards in India are designed alonginternationally accepted principles.Many Indian

companies are listed on the NYSE and NASDAQ.Report their results under US GAAP

After18yearsofliberalization Indiashowsmanyareasofimprovement,

butmuchstillneedsto be done

Public PrivatePartnership

Public-private partnerships in sectors such as

highways, railways, ports, airports and power

Investments by IndianCompanies

Indian companies are permitted to invest in jointventures and acquisitions overseas

Some major acquisitions include Tetley Tea,

Corus, Novelis, MTN, Betapharm, JaguarLandRover, The Pierre and Whyte & Mackey

FreeTrade Agreements

India has entered into Free Trade Agreementswith several countries. The ASEAN FTA, as an

example, is expected to reduce trade barriersthrough falling tariff in stages

Initial negotiations initiated with the EU

WTO

Fully implementedcommitments to WTO

Majority of productsattract duties below7.5%

Most products can be

imported freely

IntellectualProperty Rights

Intellectual property protection applies to patents issued after1995

Fully implemented in 2005 All products patented internationally after 1995 fully

protected

Others

The Indian Rupee is almost fully convertible Privatization of government companies

PoorTransport Infrastructure

Inefficient port infrastructure leading to delays in berthing ofships. Many ports also handle cargo far in excess of theircapacity, leading to delays

Quality of roads and highways needs significant improvement.Reduces average speed of movement and adds significantly tocost

PowerDeficit

Current peak load shortfall of power generation is 12-15%

LaborUnions Current laws heavily lean towards workers This makes an exit option expensive and long drawn

Costof borrowing

India traditionally has a high borrowing cost regime

The prime lending rate to industry is roughly 11-12%

CURRENT SITUATION: POSITIVES AND NEGATIVES


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36890325 Planning in India Vo

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