Industrial Development During Five Year Plans

Industrial development during the five-year plans in India has been an essential component of the country’s economic development. The plans aimed at the rapid growth of the manufacturing sector in the country and its modernization to achieve self-sufficiency in industrial production. The planning process emphasized the role of public sector enterprises and laid the foundation for a mixed economy in the country.

The following is a detailed discussion of the industrial development during each of the five-year plans:

First Five-Year Plan (1951-56):

The First Five-Year Plan aimed to develop the agricultural sector as the primary sector of the Indian economy. The plan focused on the development of heavy industries, such as iron and steel, and basic industries, such as electricity, coal, and railways. The plan emphasized the establishment of public sector enterprises to facilitate rapid industrial growth in the country.

The plan laid the foundation for the establishment of the Bhilai Steel Plant, Durgapur Steel Plant, and Rourkela Steel Plant. The Hindustan Machine Tools (HMT) was established during the period to produce machine tools to meet the growing demand for industrial machinery.

Second Five-Year Plan (1956-61):

The Second Five-Year Plan aimed at industrialization with a focus on the development of the private sector. The plan focused on the establishment of small and medium-scale industries to promote the decentralization of industrial production. The plan aimed to reduce the dependence on imported technology and raw materials.

The plan led to the establishment of many small and medium-scale industries, such as chemical industries, paper mills, and pharmaceuticals. The Indian Institutes of Technology (IITs) were also established during the period to promote research and development in the field of technology.

Third Five-Year Plan (1961-66):

The Third Five-Year Plan emphasized the modernization and expansion of industries. The plan aimed to increase the production of consumer goods, such as textiles, footwear, and food products, to meet the growing demand for these products in the country.

The plan led to the establishment of many new industries, such as fertilizer plants, cement plants, and oil refineries. The plan also emphasized the development of the transport sector to facilitate the movement of goods and services across the country.

Fourth Five-Year Plan (1969-74):

The Fourth Five-Year Plan emphasized the growth of the agricultural sector and the development of industries in rural areas. The plan aimed to promote the growth of small-scale industries, such as handloom, handicrafts, and village industries, to generate employment opportunities in rural areas.

The plan led to the establishment of many new industries in rural areas, such as khadi and village industries, handlooms, and handicrafts. The plan also emphasized the establishment of marketing facilities to promote the sale of these products in domestic and international markets.

Fifth Five-Year Plan (1974-79):

The Fifth Five-Year Plan aimed at achieving self-reliance in industrial production. The plan emphasized the expansion of the public sector to promote industrial growth in the country. The plan aimed to increase the production of capital goods, such as machinery and equipment, to promote industrial modernization.

The plan led to the establishment of many new public sector enterprises, such as Bharat Heavy Electricals Limited (BHEL), National Thermal Power Corporation (NTPC), and Oil and Natural Gas Corporation (ONGC). The plan also emphasized the development of infrastructure, such as roads, railways, and ports, to facilitate industrial growth in the country.

Sixth Five-Year Plan (1980-85):

The Sixth Five-Year Plan aimed at achieving a balanced growth of the economy. The plan emphasized the development of the agricultural sector and the promotion of employment opportunities in rural areas. The plan also aimed to promote the growth of small-scale industries and the expansion of the public sector.

The Eighth Plan (1992-1997) focused on modernization, technology up-gradation, and globalization of Indian industry. The main objectives of the plan were to increase industrial production, employment opportunities, and exports. The plan aimed to achieve an annual growth rate of 8 percent in the industrial sector. The major policies and initiatives introduced during the Eighth Plan were as follows:

• Liberalization and deregulation: The plan aimed to reduce government control over the economy and promote private sector participation in industrial development. The government introduced a series of policy reforms to attract foreign investment, reduce bureaucratic hurdles, and simplify industrial licensing procedures.
• Technology up-gradation: The plan emphasized the need for technology up-gradation and modernization of Indian industry to enhance productivity and competitiveness. The government launched several initiatives to promote research and development, technology transfer, and collaboration between industry and academia.
• Export promotion: The plan focused on boosting exports to improve India’s balance of payments position. The government introduced several export promotion schemes and incentives to encourage Indian firms to explore new markets and products.
• Infrastructure development: The plan recognized the importance of infrastructure development for industrial growth. The government invested heavily in the development of transportation, communication, and power infrastructure to provide a conducive environment for industrial development.
• Small-scale industries: The plan emphasized the need to promote small-scale industries as an engine of growth and employment generation. The government launched several initiatives to support the development of small-scale industries, such as providing credit, technical assistance, and marketing support.
• Environment protection: The plan recognized the importance of environmental protection for sustainable industrial development. The government introduced several measures to regulate industrial pollution and promote cleaner production technologies.

The Ninth Plan (1997-2002) focused on accelerating industrial growth and development through increased private sector participation, technology up-gradation, and export promotion. The plan aimed to achieve an annual growth rate of 9 percent in the industrial sector. The major policies and initiatives introduced during the Ninth Plan were as follows:

• Privatization and Deregulation: The plan aimed to reduce government control over the economy and promote private sector participation in industrial development. The government introduced several policy reforms to facilitate the entry of private sector firms in key industries, such as telecommunications, power, and transportation.
• Technology up-gradation: The plan emphasized the need for technology up-gradation and modernization of Indian industry to enhance productivity and competitiveness. The government launched several initiatives to promote research and development, technology transfer, and collaboration between industry and academia.
• Export promotion: The plan focused on boosting exports to improve India’s balance of payments position. The government introduced several export promotion schemes and incentives to encourage Indian firms to explore new markets and products.
• Infrastructure development: The plan recognized the importance of infrastructure development for industrial growth. The government invested heavily in the development of transportation, communication, and power infrastructure to provide a conducive environment for industrial development.
• Small-scale industries: The plan emphasized the need to promote small-scale industries as an engine of growth and employment generation. The government launched several initiatives to support the development of small-scale industries, such as providing credit, technical assistance, and marketing support.
• Environment protection: The plan recognized the importance of environmental protection for sustainable industrial development. The government introduced several measures to regulate industrial pollution and promote cleaner production technologies.

The Tenth Five-Year Plan (2002-2007) aimed to achieve an average annual GDP growth rate of 8%, and it focused on several key areas, including agriculture, infrastructure development, poverty alleviation, and education. The plan aimed to increase agricultural productivity, with a focus on developing the irrigation system, improving the quality of seeds and fertilizers, and strengthening research and extension services. The plan also aimed to develop infrastructure by investing in roads, ports, airports, and telecommunications.

The Eleventh Five-Year Plan (2007-2012) aimed to achieve an annual GDP growth rate of 9%, with a focus on inclusive growth and sustainable development. The plan emphasized the need to provide employment opportunities and improve the quality of life in rural areas. It aimed to increase investment in agriculture, education, health, and rural infrastructure. The plan also aimed to reduce poverty and promote social inclusion through targeted policies and programs.

The Twelfth Five-Year Plan (2012-2017) aimed to achieve an annual GDP growth rate of 8%, with a focus on inclusive and sustainable development. The plan emphasized the need to create employment opportunities, promote entrepreneurship, and improve the quality of education and health services. It also aimed to increase investment in infrastructure, especially in the areas of energy, transportation, and urban development.

The Thirteenth Five-Year Plan (2017-2022) aims to achieve an annual GDP growth rate of 7.5%, with a focus on reducing poverty, promoting social inclusion, and achieving sustainable development. The plan aims to increase investment in infrastructure, especially in the areas of water, sanitation, and housing. It also aims to promote entrepreneurship and innovation, and to strengthen social safety nets to protect vulnerable sections of society.