First Five-Year Plan (1951–1956)
The first five-year plan was presented to the parliament of India December 8, 1951 by the first Indian Prime Minister, Jawaharlal Nehru. The first five-year plan was based on Harrod - Domar model. The plan addressed, primarily, the agrarian segment, including investments in irrigation and dams.
The agricultural sector was smacked hardest by India partition and needed urgent attention. The total planned budget of Rs 2069 Crore was allocated to 7 broad areas:
• Irrigation & energy (27.2 %)
• Agriculture & community development (17.4 %)
• Transport & communications (24 %)
• Industry (8.4 %)
• Social services (16.64 %)
• Land rehabilitation (4.1 %)
• Other sectors & services (2.5 %)
The National income augmented more than per capita income owing to quick population growth. Several irrigation projects were started during this period, including the Hirakud Dam and Bhakra Dam. Target growth rate was 2.1% annual GDP growth. Achieved growth rate was 3.6%. Net domestic product went up by 15%.