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Eleventh Five Year Plan : : Five Year Plan | Ninth Five Year Plan | Growth during Five Year Plans

11th Five Year Plan of India ( 2007 – 2012 )

  • On the eve of the 11th Plan, our economy is in a much stronger position than it was a few Years ago. After slowing down to an average growth rate of about 5.5% in the 9th Plan period ( 1997 – 98 to 2001 – 02 ), it has accelerated significantly in recent Years.
  • The average growth rate in the last four Years of 10th Plan period ( 2003 – 04 to 2006 – 07 ) is likely to be a little over 8%, making the growth rate 7.2% for the entire 10th Plan period. Though, this is below the 10th Plan target of 8%, it is the highest growth rate achieved in any plan period.
  • This performance reflects the strength of our economy and the dynamism of the private sector in many areas. Yet, it is also true that economic growth has failed to be sufficiently inclusive, particularly after the mid – 1990s.
  • Agriculture lost its growth momentum from that point on and subsequently entered a near crisis situation. Jobs in the organized sector have not increased despite faster growth. The percentage of our population below the poverty line is declining but only at a modest pace.
  • Malnutrition levels also appear to be declining, but the magnitude of the problem continues to be very high. Far too many people still lack access to basic services such as health, education, clean drinking water and sanitation facilities without which they cannot claim their share in the benefits of growth.
  • Women have increased their participation in the labor force as individuals, but continue to face discrimination and are subject to increasing violence, one stark example of which is the declining child sex ratio.

India’s Vision for the 11th Five Year Plan :

  • The 11th Plan provides an opportunity to restructure policies to achieve a new vision based on faster, more broad – based and inclusive growth. It is designed to reduce poverty and focus on bridging the various divides that continue to fragment our society.
  • The 11th Plan must aim at putting the economy on a sustainable growth trajectory with a growth rate of approximately 10 per cent by the end of the Plan period. It will create productive employment at a faster pace than before, and target robust agriculture growth at 4% per Year.
  • It must seek to reduce disparities across regions and communities by ensuring access to basic physical infrastructure as well as health and education services to all. It must recognize gender as a cross – cutting theme across all sectors and commit to respect and promote the rights of the common person.
  • Rapid growth is an essential part of our strategy for two reasons. Firstly, it is only in a rapidly growing economy that we can expect to sufficiently raise the incomes of the mass of our population to bring about a general improvement in living conditions. Secondly, rapid growth is necessary to generate the resources needed to provide basic services to all.
  • Work done within the Planning Commission and elsewhere suggests that the economy can accelerate from 8 per cent per Year to an average of around 9% over the 11th Plan period, provided appropriate policies are put in place.
  • With population growing at 1.5% per Year, 9% growth in GDP would double the real per capita income in 10 Years. This must be combined with policies that will ensure that this per capita income growth is broad based, benefiting all sections of the population, especially those who have thus far remained deprived.
  • A key element of the strategy for inclusive growth must be an all out effort to provide the mass of our people the access to basic facilities such as health, education, clean drinking water etc. While in the short run these essential public services impact directly on welfare, in the longer run they determine economic opportunities for the future.
  • The private sector, including farming, micro, small and medium enterprises ( MSMEs ) and the corporate sector, has a critical role to play in achieving the objective of faster and more inclusive growth.
  • This sector accounts for 76% of the total investment in the economy and an even larger share in employment and output. MSMEs, in particular, have a vital role in expanding production in a regionally balanced manner and generating widely dispersed off – farm employment. Our policies must aim at creating an environment in which entrepreneurship can flourish at all levels, not just at the top.
  • All this is feasible but it is by no means an easy task. Converting potential into reality is a formidable Endeavour and will not be achieved if we simply continue on a business – as – usual basis. There is need for both the Centre and the States to be self critical and evaluate programmes and policies to see what is working and what is not.

Macroeconomic Indicators for the 11th Five Year Plan : 

SI. No. Macroeconomic Indicators 10th Plan ( Actual )* 11th Plan ( Average )
1. Growth rate of GDP ( % ); of which; 7.2 9.0
a. Agriculture 1.7 4.1
b. Industry 8.3 10.5
c. Services 9.0 9.9
2. Investment rate ( % of GDP ) 27.8 35.1
a. Public 6.7 10.2
b. Private 21.1 24.9
3. Domestic Savings rate ( % of GDP ) of which 28.2 32.3
a. Household 22.8 22.0
b. Corporate 4.5 6.1
c. PSEs 4.2 3.0
d. Government -3.2 1.2
4. Current account balance ( % of GDP ) 0.2 -2.8
5. Government revenue balance ( % of GDP ) -4.4 -0.2
6. Government Fiscal balance ( % of GDP ) -8.0 -6.0
* 1. GDP growth rate is actual up to 2005 – 06 and as estimated by the EAC to PM for 2006 – 07. Savings rate, investment rate and CAB are actual up to 2004 – 05.
2. Government Fiscal Balance and Revenue Balance are Based on Actuals ( 3 Years for Centre and 2 Years for states ) and for remaining Years RE / BE / Projected.

Monitorable Socio – Economic Targets of the 11th Plan

Income & Poverty in India :

  • 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 to 4% per Year to ensure a broader spread of benefits
  • Create 70 million new work opportunities.
  • Reduce educated unemployment to below 5%.
  • Raise real wage rate of unskilled workers by 20 percent.
  • Reduce the headcount ratio of consumption poverty by 10 percentage points.

11th Five Year Plan Education :
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  • Reduce dropout rates of children from elementary school from 52.2% in 2003 – 04 to 20% by 2011 – 12.
  • Develop minimum standards of educational attainment in elementary school, and by regular testing monitor effectiveness of education to ensure quality.
  • Increase literacy rate for persons of age 7 Years or more to 85%.
  • Lower gender gap in literacy to 10 percentage points.
  • Increase the percentage of each cohort going t6 higher education from the present 10% to 15% by the end of the 11th Plan.

11th Five Year Plan Health :

  • Reduce infant mortality rate ( IMR ) to 28 and maternal mortality ratio ( MMR ) to 1 per 1000 live births.
  • Reduce Total Fertility Rate to 2.1.
  • Provide clean drinking water for all by 2009 and ensure that there are no slip – backs by the end of the 11th Plan.
  • Reduce malnutrition among children of age group 0 – 3 to half its present level.
  • Reduce anemia among women and girls by 50% by the end of the 11th Plan.

Women and Children :

  • Raise the sex ratio for age group 0 – 6 to 935 by 2011 – 12 and to 950 by 2016 – 17.
  • Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are Women and Girl Children.
  • Ensure that all children enjoy a safe childhood, without any compulsion to work.

11th Five Year Plan Infrastructure :

  • Ensure Electricity connection to all villages and BPL households by 2009 and round – the – clock power by the end of the Plan.
  • Ensure all – weather road connection to all habitation with population 1000 and above ( 500 in hilly and tribal areas) by 2009, and ensure coverage of all significant habitation by 2015 ).
  • Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012.
  • Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by 2016 – 17.

Environment in India :

  • Increase forest and tree cover by 5 percentage points.
  • Attain WHO standards of air quality in all major cities by 2011 – 12.
  • Treat all urban waste water by 2011 – 12 to clean river waters.
  • Increase energy efficiency by 20 percentage points by 2016 – 17.

Growth During Five Year Plans :

  • 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 in India
  • 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.
  • Industrial growth was 4.5% as against the target of 3% p.a.
  • Exports grew by 7.4% ( target was 14.55% ) and imports grew by 6.6% ( target was 12.2% p.a. ).
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