India has emerged as a super power. The transition was not easy. Guidelines for operating the economy was provided by the five year plans.
The 1st five year plan was presented by Jawaharlal Nehru, who was the Prime Minister during that period. It was formulated for the execution of various plans between 1951 to 1956. The Planning Commission was responsible for working out the plan.
Objectives of the 1st five year plan(1951 to 1961):
The primary aim of the 1st five year plan was to improve living standards of the people of India. This could be done by making judicious use of India's natural resources. The total outlay of the 1st five year plan was worth Rs.2,069 crore. This amount was assigned to different sectors which included:
Development of agriculture and community
Miscellaneous issuesThe target set for the growth in the gross domestic product was 2.1percent every year. In reality, the actual achieved with regard to gross domestic product was 3.6 percent per annum. This is a clear indication of the success of the 1st five year plan.
Some important events that took place during the tenure of the 1st five year plan:
The following Irrigation projects were started during that period:
The government had taken steps to rehabilitate the landless workers, whose main occupation was agriculture. These workers were also granted fund for experimenting and undergoing training in agricultural know how in various cooperative institutions. Soil conservation, was also given considerable importance.
The Indian government also made considerable effort in improving posts and telegraphs, railway services, road tracks, civil aviation.
Sufficient fund was also allocated for the industrial sector. In addition measures were taken for the growth of the small scale industries.
The US employment data was disappointing. The short-term market had been leaning the wrong way. The recent data had fanned hopes that the labor market was accelerating, but today’s data suggest the pace of improvement has not changed.
It is the sixth month that net new job creation was in excess of 200k, but private payrolls snapped that streak. The 198k increase in the private sector jobs was the lowest since January.
Professor at Columbia University. Recipient of the Nobel Memorial Prize in Economic Sciences in 2001 & the John Bates Clark Medal in 1979. Author of "Freefall: America, Free Markets", "The Sinking of the World Economy", "Globalisation and its Discontents" & "Making Globalisation Work".
Mario I. Blejer is a former governor of the Central Bank of Argentina and former Director of the Center for Central Banking Studies at the Bank of England. Eduardo Levy Yeyati is Professor of Economics at Universidad Torcuato Di Tella and Senior Fellow at The Brookings Institution.