• First five year plan, presented by Jawaharlal Nehru, was based on the Harrod-Domar model.
• The plan addressed, mainly, the agrarian sector.
• Total planned budget was 2069 crore rupees.
• The achieved GDP growth rate was 3.6 percent while the target GDP growth rate was 2.1 percent.
Jawaharlal Nehru, the first Indian Prime Minister presented the first five-year plan to the Parliament of India on 8th December 1951. The plan was based on the Harrod-Domar model. In this plan the focus was mainly on the agrarian sector which included investments in dams and irrigation. The agricultural sector suffered most by the partition of India and required urgent attention.
The total planned budget allocation for the plan was 2069 crore rupees which was further divided to seven broad areas: irrigation and energy (27.2 percent), agriculture and community development (17.4 percent), land rehabilitation (4.1 percent), transport and communications (24 percent), industry (8.4 percent), social services (16.64 percent), and for other sectors and services (2.5 percent).
Facts and Figures
1. GDP and NDP Growth
The target growth rate was 2.1% annual gross domestic product (GDP) growth and the achieved growth rate was 3.6%. The net domestic product (NDP) increased by 15%.
2. Per Capita Income Growth
There were relatively high crop yields due to good monsoon, boosting exchange reserves and the per capita income, which went up by 8 percent. National income went up by 18 percent which was more than the per capita income because of rapid population growth.
3. New projects during this plan
Many irrigation projects were initiated during this period, including the Bhakra Dam and Hirakud Dam.