India's development in every sector takes place through the five year plans which are laid out by the Planning Commission. They not only lay out the plans but also monitor the execution of those plans and make sure that all the machineries of the Center and the state work in coordination. The 5th Five Year Plan was also developed by the Planning Commission. The Commission has a Deputy Chairman and along with the Prime Minister, who acts as the Ex Officio Chairman, the plan is laid out. The present Deputy Chairman is Montek Singh Ahluwalia.
The 5th Five Year Plan
The 5th Five Year Plan commenced on 1974 and extended till 1979. Objective of the Fifth Year PlanThe objective of the 5th Five Year Plan was to increase the level of employment, reduce poverty and to attain self sufficiency in agriculture.
Backdrop of the 5th Five Year Plan
The world economy was in a troublesome state when the fifth five year plan was chalked out. This had a negative impact on the Indian economy. Prices in the energy and food sector skyrocketed and as a consequence inflation became inevitable. Therefore, the priority in the fifth five year plan was given to the food and energy sectors . In the later stages the increase in the supply of food grains and the export of minerals and oil reserve earned quite a good amount of foreign exchange to the Indian Economy.
Contents of the 5th Five Year Plan
The 5th Five Year Plan was laid out during a crisis period to overcome the impediments posed by the wavering economic condition. The 5th Five Year Plan was designed in a way to meet the needs of the time. The issues that were emphasised were:
Reducing the discrepancy between the economic development at the regional, national, international level. It emphasized on putting the economic growth at par with each other.
Improving the agricultural condition by implementing land reform measures.
Improving the scope of self-employment through a well integrated program.
Reducing the rate of unemployment both in the urban and the rural sectors.
Encouraging growth of the small scale industries.
Enhancing the import substitution in the spheres including chemicals, paper, mineral and equipment industries.
Applying policies pertaining to finance and credit in the industrial sector.
Stressed on the importance of a labour intensive production technology in India.
The global crisis changed the face of monetary policy. Central banks deployed new tools to counter the effects of the crisis, which have reduced the risk of deflation, stabilised the financial system and calmed financial markets; but potential negative side effects remain.
Two weeks ago, the IMF organized a major research conference, in honour of Stanley Fischer, on lessons from the crisis. Here is my take. I shall focus on what I see as the lessons for monetary policy, but before I do this, let me mention two other important conclusions.
Eric J. Gleacher Distinguished Service Professor of Finance at the Booth School of Business at the University of Chicago. IMF’s Chief Economist from September 2003 to January 2007. Inaugural recipient of the Fischer Black Prize.
Professor of Economics & Director of the Earth Institute at Columbia University. Special Adviser to the UN Secretary-General on the Millennium Development Goals. Founder & co-President of the Millennium Promise Alliance.
Chancellor of the Exchequer of the United Kingdom from 1992 to 2007. Prime Minister of the UK between 2007 and 2010. Inaugural 'Distinguished Leader in Residence' at New York University. Advisor at World Economic Forum