12th Five Year Plan of India

Economic Planning
Process in which the limited natural
resources are used skillfully so as to
achieve the desired goals.
The concept of economic planning in
India, is derived from Russia.
1947committee
on
economic
planning
constituted
under
chairmanship of Pundit J. L. Nehru,
which
suggested
Planning
Commission
. Modern Economic Theory by K.K.
Source:
Dewitt

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March,1950-Planning commission was constituted.

Planning commission is
a non constitutional and advisory
corporation. The Indian constitution do not provide for the formation
of planning commission.

Table No.1

Five year
plan

Period

First plan

1951-56

2.1

3.6

Herod Domor
Model

Second plan

1956-61

4.5

4.21

Prof. P.C.
Mahalanobis

Third plan

1961-66

5.6

2.72

Sukhomy
Chakraborty
and Prof. Saddy

Fourth plan

1969-74

5.7

2.05

Ashok Rudra
and Alon S.
Manney

Fifth plan

1974-79

4.4

4.83

Investment
model of
planning
commission

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Target growth
rate of GDP (%)

Achievem Model
ent (%)

Table No.
2

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Table No. 3

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Table No.4

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12 Five Year Plan

th

The government on 4th October approved the 12th five year plan
(2012-17) document that seeks to achieve annual average economic
growth rate of 8.2 per cent, down from 9 per cent envisaged earlier,
in view of fragile global recovery. The theme of the Approach Paper is
faster, sustainable and more inclusive growth .According to officials
the projected average rate gross capital formation in the 12th Plan is
37 per cent of GDP. The projected gross domestic savings rate is 34.2
per cent of GDP and the net external financing needed for macro
economic balance has been placed at 2.9 per cent of GDP. During the
11th Plan (2007-12), India has recorded an average economic growth
rate of 7.9 per cent. This, however, is lower than the 9 per cent
targeted in 11th Plan. Besides other things, the 12th Plan seeks to
achieve 4 per cent agriculture sector growth during 2012-17. The
growth target for manufacturing sector has been pegged at 10
percent. The total plan size has been estimated at Rs.47.7 lakh crore,
135 per cent more that for the 11th Plan (2007-12).

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TWELFTH FIVE YEAR PLAN: GROWTH RATE

TARGETS
Table No. 5
Sl.No Sectors
.

11th FYP
(achieved) (in %)

12th FYP
(in %)

Agriculture, Forestry & Fishing

3.7

4.0

Mining & Quarrying

4.7

8.0

Manufacturing

7.7

9.8

Elect. Gas & Water Supply

6.4

8.5

Construction

7.8

10.0

Trade, Hotels & Restaurant+

Transport, Storage &
Communication

9.9

11.0

10.7

10.0

7
8

Financing, Insurance, Real

Estate & Business services

Community, Social & Personal

Services

9.4

8.0

10

Total GDP

8.2

9.0

11

Industry

7.4

9.6

Services
10.0
10.08
Source: 12th plan Approach paper, Planning
Commission

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12

Targets (in %)for Broad Macro Economic

Parameters
Table No. 6

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Expenditure
of Central
Govt.

Plan Expenditure

(agriculture, rural
development, irrigation and flood control,
energy, industry and minerals, transport,
communications, Science and Technology,
Environment and Economic Services etc )

Non-Plan Expenditure(Interest payments,

defense, subsidies, police, pensions, economic
services, loans to public enterprises and loans as
well as grants to state governments, union territory
governments and foreign governments.)
Plan Expenditure includes both revenue and
capital expenditure of the government on the Central Plan,
Central assistance to state and union territory plans. It
forms a sizeable proportion of the total expenditure of the
Central government.
Expenditure of
State Govt.

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Development
Expenditure
Non-Development
Expenditure

10

 12th plan envisage Universalisation of

Secondary Education by 2017.
In 11th plan, the total public spending on
health (combined of state and centre) was
less than 1% of GDP. 12th plan aims to
increase it to 2.5% of GDP by the end of
12th plan.
India has evolved National Action Plan for
Climate Change with eight component
mission. 12th plan considers it for
implementation to achieve target of 20%
to 25%reduction in emission intensity of
GDP over 2005 levels by 2020.
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 IMR (infant mortality rate) was 47 in

2010 and 12th plan aims to bring it
down to 25 per 1000 live birth by
the end of plan period.
12th plan aims to bring down MMR
( maternal mortality rate) to 1 per
1000 live birth by the end of plan
period.
Not even single Indian university
figures in list of top 200 universities
in the world.12th plan aims to get 5
Indian university in the list.
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12

 Even after 65 years of Independence, we have 45%

of households do not have electricity connections.
11th plan added 55,000 MW of generation capacity
which was short of target set and 12th plan envisages
to add 88,000 MW by the end of plan period.
12th plan envisages to add 30,000 MW of renewable
energy capacity.
12th plan envisages to electrify all the villages and to
reduce AT & C losses to 20% by the end of 12th plan.
The total investment in infrastructure in 12th plan is
estimated to be Rs. 55.7 lakh crore ,which works out
to be $1trillion at prevailing exchange rates.

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 The share of private investment in

total investment in infrastructure rose
from 22% in Tenth Plan to 36.6% in 11th
Plan. it will have to increase to 48% in
12th plan to meet infrastructure
investment target.
More than 40% of household avail no
banking facility at all in country.
insurance premia account for less than
1% of GDP, which is just one third of
international average.
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 We have capacity to treat only 30%

of human waste we generate.
Just two cities, Delhi and Mumbai,
which generate 17% of countrys
urban sewage have about 40% of
total installed capacity.
12th plan envisages that no water
scheme in urban Indian will be
sanctioned
without
integrated
scheme for sewage treatment.
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 Every state in 12th plan must have an

average growth rate preferably higher than
achieved in 11th plan.
Head count ratio of consumption poverty is
to be reduced by 10% points over the
preceding estimates by the end of this plan.
Generate 50 million new job opportunities
in non-farm sector and provide skill
certification to equivalent no. during 12 th
plan period.
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 Mean year of schooling to increase to 7

years by the end of 12th plan.
Enhanced access to higher education by
creation of 2 million additional seats
cohort aligned to the skill needs of
economy.
Eliminate gender and social gap in school
enrolment by the end of 12th plan .

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Improve child sex ratio (0-6) to 950 by the end of

12th plan.
Reduce fertility rate to 2.1 by the end of 12th plan.
Reduce under nutrition among children aged 0-3
to half of the NFHS-3 level by the end of 12th plan.
Increase investment in infrastructure to 9% of
GDP by the end of 12th plan.
Increase Gross Irrigated area from 90 million
hectares to 103 million hectares by the end of 12th
plan.
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 Connect all villages with all-weather

road by the end of 12th plan.
Upgrade
national
and
state
highways to minimum two-lane
standard by the end of 12th plan.
Complete Eastern and Western
Dedicated Freight Corridor by the
end of 12th plan.
Increase rural tele-density to 70%
by the end of 12thplan. Currently it
is 40.81%.
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 Ensure 50% of rural population has

access to 40 lpcd piped drinking
water supply and 50% of Gram
Panchayat achieve Nirmal Gram
Status by the end of 12th plan.
Increase
Green
Cover
(as
measured by Satellite Imagery)by
1 million hectare every year during
12th plan period.
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