Five Year Plans of India: Planning Commission to NITI Aayog

India’s economic planning through Five Year Plans is a frequently tested topic in Kerala PSC exams. Questions cover plan numbers, priorities, models used, and the transition from Planning Commission to NITI Aayog.

Planning Commission — Key Facts

Feature	Detail
Established	March 15, 1950
Type	Extra-constitutional, non-statutory body
Set up by	Resolution of the Government of India (not by Parliament/Constitution)
Chairman	Prime Minister (ex-officio)
First Deputy Chairman	Gulzarilal Nanda
Abolished	January 1, 2015
Replaced by	NITI Aayog

NITI Aayog — Key Facts

Feature	Detail
Full form	National Institution for Transforming India
Established	January 1, 2015
Type	Policy think tank (advisory, not allocative)
Chairman	Prime Minister
First Vice Chairman	Arvind Panagariya
CEO	Appointed by PM (first: Sindhushree Khullar)
Key difference from Planning Commission	Advisory role; no fund allocation power; bottom-up approach (cooperative federalism)
Governing Council	PM + all Chief Ministers + Lt. Governors

All Five Year Plans — Master Table

Plan	Period	Model/Focus	Key Priority	Growth Target (%)	Achievement (%)
1st	1951–1956	Harrod-Domar model	Agriculture, irrigation, community development	2.1	3.6 (exceeded)
2nd	1956–1961	Mahalanobis model	Rapid industrialization, heavy industries	4.5	4.2
3rd	1961–1966	—	Self-reliance, agriculture + industry	5.6	2.8 (failed — wars, drought)
Plan Holiday	1966–1969	Annual plans	Green Revolution launched	—	—
4th	1969–1974	—	Growth with stability; self-reliance	5.7	3.3
5th	1974–1979	D.P. Dhar model	Poverty removal (Garibi Hatao)	4.4	4.8 (exceeded)
Rolling Plan	1978–1980	Janata govt	Terminated 5th Plan one year early	—	—
6th	1980–1985	—	Poverty removal; technology modernization	5.2	5.7 (exceeded)
7th	1985–1990	—	Rapid growth in food, productivity, employment	5.0	6.0 (exceeded; most successful in growth)
Annual Plans	1990–1992	—	Political instability	—	—
8th	1992–1997	John W. Miller model	Human resource development; liberalization era	5.6	6.8 (exceeded)
9th	1997–2002	—	Equity, social justice with growth	6.5	5.4
10th	2002–2007	—	Doubling per capita income in 10 years; 8% growth	8.0	7.6
11th	2007–2012	—	Inclusive growth	9.0	8.0
12th	2012–2017	—	Faster, more inclusive, sustainable growth	8.0	Terminated in 2017 (NITI Aayog replaced planning)

Detailed Notes on Each Plan

First Five Year Plan (1951–1956)

Feature	Detail
Model	Based on Harrod-Domar growth model
Priority	Agriculture and irrigation (post-Partition food crisis)
Key projects	Bhakra Nangal Dam, Damodar Valley Corporation, Hirakud Dam
Land reforms	Zamindari abolition initiated
Achievement	Exceeded target — 3.6% vs 2.1% target
Total outlay	Rs. 2,069 crore

Second Five Year Plan (1956–1961)

Feature	Detail
Model	P.C. Mahalanobis model (heavy industry focus)
Priority	Rapid industrialization; heavy and basic industries
Key projects	Bhilai, Durgapur, Rourkela steel plants
Industrial Policy	Industrial Policy Resolution 1956
Significance	Laid foundation for India’s industrial base
Total outlay	Rs. 4,672 crore

PSC Note: The Mahalanobis model of the 2nd Plan is the most commonly tested economic model in PSC exams.

Third Five Year Plan (1961–1966)

Feature	Detail
Goal	Self-reliant and self-generating economy
Why it failed	Indo-China War (1962), Indo-Pakistan War (1965), severe drought (1965–66)
Known as	”Gadgil Yojana” (D.R. Gadgil was the key planner)
Result	Growth only 2.8% against 5.6% target

Plan Holiday (1966–1969)

• Three annual plans instead of a five-year plan
• Reason: Failure of 3rd Plan, two wars, drought
• Green Revolution started during this period (1966–67)
• Devaluation of Rupee in 1966

Fourth Five Year Plan (1969–1974)

Feature	Detail
Main objective	Growth with stability; reduction of inequality
Key events during plan	Nationalization of 14 banks (1969), Indo-Pakistan War (1971), Bangladesh liberation
Achievement	3.3% growth (below target due to war and oil crisis)

Fifth Five Year Plan (1974–1979)

Feature	Detail
Model	D.P. Dhar model
Main objective	Poverty eradication (Garibi Hatao) and self-reliance
Key programmes	Minimum Needs Programme, IRDP
Achievement	4.8% (exceeded target of 4.4%)
Note	Terminated one year early (1978) by Janata government

Sixth Five Year Plan (1980–1985)

Feature	Detail
Main objective	Poverty alleviation and technology modernization
Key programmes	IRDP expanded, TRYSEM, NREP
Achievement	5.7% (exceeded target)
Note	Indian economy began showing signs of structural improvement

Seventh Five Year Plan (1985–1990)

Feature	Detail
Main objective	Rapid growth in food production, employment, and productivity
Achievement	6.0% (most successful plan in terms of exceeding growth targets)
Key focus	Technology missions, telecom expansion
PM	Rajiv Gandhi

Eighth Five Year Plan (1992–1997)

Feature	Detail
Context	Post-LPG (Liberalization, Privatization, Globalization) reforms of 1991
Main objective	Human resource development; consolidation of reforms
Key event	Economic reforms (P.V. Narasimha Rao government)
Achievement	6.8% — first plan in the liberalization era
Focus	Education, health, employment generation

Ninth Five Year Plan (1997–2002)

Feature	Detail
Main objective	Growth with equity and social justice
Key focus	Agriculture as priority; empowering women and disadvantaged
Achievement	5.4% (below target of 6.5%)
Reason for shortfall	Asian financial crisis, Kargil War, political instability

Tenth Five Year Plan (2002–2007)

Feature	Detail
Main objective	Achieve 8% GDP growth; double per capita income in 10 years
Key innovation	Monitorable targets (health, education, environment) for the first time
Achievement	7.6% (close to target)
Note	First plan to set specific reduction targets for poverty and IMR

Eleventh Five Year Plan (2007–2012)

Feature	Detail
Theme	”Towards Faster and More Inclusive Growth”
Growth target	9%
Achievement	~8.0%
Key focus	Inclusive growth, NREGA implementation, Aadhaar launch
Deputy Chairman	Montek Singh Ahluwalia

Twelfth Five Year Plan (2012–2017)

Feature	Detail
Theme	”Faster, More Inclusive, and Sustainable Growth”
Growth target	8%
Key note	Last Five Year Plan; NITI Aayog replaced Planning Commission on Jan 1, 2015
Outcome	Plan period completed but formal planning process ended

Important Programmes Linked to Plans

Programme	Plan Period	Purpose
Community Development Programme	1st Plan (1952)	Rural development
Green Revolution	Plan Holiday (1966–67)	Agricultural productivity
Garibi Hatao	5th Plan	Poverty removal
IRDP	6th Plan	Integrated Rural Development
LPG Reforms	8th Plan	Liberalization
MGNREGA	11th Plan (launched 2006)	Rural employment guarantee

Key Chairpersons / Deputy Chairmen of Planning Commission

Deputy Chairman	Period	Notable For
Gulzarilal Nanda	1950–1952	First Deputy Chairman
V.T. Krishnamachari	1953–1960	During 1st and 2nd Plans
D.P. Dhar	1971–1974	5th Plan formulation
Montek Singh Ahluwalia	2004–2014	Last Deputy Chairman; 11th and 12th Plans

Frequently Asked PSC Questions

Q: Planning Commission was set up in which year? A: 1950

Q: NITI Aayog replaced Planning Commission in which year? A: 2015 (January 1)

Q: Which Five Year Plan used the Mahalanobis model? A: Second Five Year Plan (1956–1961)

Q: Which plan focused on “Garibi Hatao”? A: Fifth Five Year Plan

Q: The most successful plan in terms of growth? A: Seventh Five Year Plan (achieved 6.0% against 5.0% target)

Q: Green Revolution was launched during? A: Plan Holiday period (1966–1969)

Q: First plan to exceed its growth target? A: First Five Year Plan (3.6% vs 2.1% target)

Q: Who is the chairman of NITI Aayog? A: Prime Minister of India

Q: Planning Commission was what type of body? A: Extra-constitutional, non-statutory body (set up by executive resolution)

Q: How many Five Year Plans did India have? A: 12 (1st in 1951 to 12th ending in 2017)

Exam Tips

• 2nd Plan (Mahalanobis model) and 5th Plan (Garibi Hatao) are the two most tested plans
• Remember “Plan Holidays” — there were two: 1966–69 and 1990–92
• NITI Aayog is NOT a planning body — it is a think tank; it does NOT allocate funds to states
• The 7th Plan is considered the most successful — highest ratio of achievement to target
• Planning Commission was NOT a constitutional body — this is a common MCQ trap
• Know the difference: Planning Commission (top-down, allocative) vs NITI Aayog (bottom-up, advisory)