The Union Cabinet on 4 October 2012 approved the 12th five-year plan with its aim to renew Indian economy and use the funds from government in improving the facilities of education, sanitation and health. This plan has seen a three-fold increase in the budget constraints when compared to that of the 11th five-year plan. The plan would infuse a huge fund of 47.7 lakh crore rupees and this will help to accomplish the economic growth to an average level of 8.2 percent.
12th five-year plan is guided by the policy guidelines and principles to revive the following Indian economy, which registered a growth rate of meager 5.5 percent in the first quarter of the financial year 2012-13.
The plan aims towards the betterment of the infrastructural projects of the nation avoiding all types of bottlenecks. The document presented by the planning commission is aimed to attract private investments of up to US$1 trillion in the infrastructural growth in the 12th five-year plan, which will also ensure a reduction in subsidy burden of the government to 1.5 percent from 2 percent of the GDP (gross domestic product). The UID (Unique Identification Number) will act as a platform for cash transfer of the subsidies in the plan.
The plan aims towards achieving a growth of 4 percent in agriculture and to reduce poverty by 10 percentage points, by 2017.
The formulated draft of the plan would be presented for final approval before the National Development Council (NDC) that is headed by the Prime Minister having the Cabinet Ministers and Chief Ministers on board. National Development Council (NDC) is the apex decision making body and authority to signal the five year plan in the nation.
Five year plans in India with their objectives
First five-year plan- (1951-1956) – The plan aimed at development of the agricultural sector including irrigation system and dams.
Second five-year plan- (1956-1961) - The second plan aimed towards the heavy industry, mainly in the Public Sector.
Third five-year plan- (1961–1966) – This was the plan that saw many ups and downs and change in the focus, affected by wars and drought. At first the plan aimed at agriculture and wheat production, but the 1962 war with China shifted the projection of aim towards stabilizing the defence industry and strengthening it. This war was followed with Pakistan war in 1965. Further, the drought of 1965 shifted the attention of the plan from defence industry to price stabilization that occurred due to heavy inflation. The decided growth target for this plan was 5.6 percent and the growth witnessed was 2.4 percent.
Fourth five-year plan- (1969–1974) – This plan aimed towards green-revolution and nationalization of 14 banks in India.
Fifth five-year plan- (1974–1979) – The plan aimed at poverty alleviation, employment and justice along with self-reliability on defence and agriculture. Morarji Desai Government rejected the plan in 1978.
Sixth five-year plan- (1980–1985) – Economic liberalization and price control was the aim of this plan.
Seventh five-year plan- (1985–1990) – Aim of this plan was directed towards increase in productivity in all types of industries to generate more employment.
Eighth five-year plan- (1992–1997) – The nation in this phase suffered from a great economic instability and thus the plan aimed at privatisation and liberalisation.
Ninth five-year plan- (1997–2002) – High-speed industrialisation, along with human development, poverty decline, complete employment and self-sufficiency in cases of domestic resources.
Tenth five-year plan- (2002–2007) – This plan aimed at poverty reduction by 5 percent and attain a growth rate of 8 percent in GDP.
Eleventh five-year plan- (2007–2012) – The eleventh plan was based on different objectives that includes education, income and poverty, women and children, infrastructure, health and safeguarding the environment.