Economy · X-Factor Notes
Planning Chapter Revision Summary revision notes for UPPCS Prelims.
High-Yield Revision| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Economic Planning: Constitutional Status | Economic Planning is a subject mentioned in the Concurrent List of the Constitution of India. | U.P. Lower Sub. (Pre) 2002 |
| Indian Economic System | The Indian Economy is characterized as a Mixed economy. A mixed economy means the existence of both private and public sectors. | UPPCS (Mains) 2013, UPPCS (Pre) 1990, U.P.U.D.A./L.D.A. (Pre) 2006, UPPCS (Pre) (Re-Exam) 2015, UPPCS (Pre) 2007 |
| Planning Prerequisites/Goals | Planning is adopted for: balanced socio-economic development; extending the benefits of development uniformly; concentrating on removing regional disparities |
| Concept | What to remember | Asked in UPPCS |
|---|
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Planning Commencement | Planned Development Model adopted in India from April 1, 1951, with the inception of the First Five Year Plan. | |
| First Five Year Plan (1951-56) | Based on the Harrod-Domar Model. Priority/Focus was the Development of Agriculture. Included the launch of the Community Development Programme (1952). Target 2.1%; Actual 3.6%. | U.P. R.O./A.R.O. (Pre) 2021, UPPCS (Mains) 2011, UPPCS (Pre) 1994, UPPCS (Mains) 2015, UPPCS (Pre) 1994 |
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Fourth Five Year Plan (1969-74) | Objectives were "growth with stability" and "progressive achievement of self reliance". Adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power. Adopted the Growth Centre Approach to remove regional disparities. | |
| Fifth Five Year Plan (1974-79) | Main objectives were Poverty removal (Garibi Hatao) and attainment of |
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Eighth Five Year Plan (1992-97) | Recognized "human development" as the core of developmental efforts. Saw a major shift in the pattern of industrialization with emphasis on infrastructure over heavy industries. Launched after structural adjustment policies. Achieved the maximum cumulative annual growth rate of Real Gross National Product (6.8%). | U.P. Lower Sub. (Spl.) (Pre) 2004, U.P. R.O./A.R.O. (Pre) 2016, U.P. P.C.S. (Pre) 1998, 1995 |
| Ninth Five Year Plan (1997-2002) | Focus/Theme: |
| Concept | What to remember | Asked in UPPCS |
|---|---|---|
| Highest Cumulative Growth Rate | The maximum cumulative annual growth rate of Real Gross National Product occurred in the Eighth Five Year Plan(6.8%). Highest GDP growth rate achieved during the Tenth Plan. | U.P. Lower Sub. (Spl.) (Pre) 2004, UPPCS (Mains) 2007, 2009 |
| Plan Holiday | Refers to the period 1966-69, consisting of three Annual Plans. | |
| Decade of Jobless Growth |
| UPPCS (Pre) 2009, UPPCS (Mains) 2016 |
| Imperative vs. Indicative Planning | The basic difference is that imperative planning entirely replaces the market mechanism with a command hierarchy, while indicative planning aims to improve the functioning of the market system. | UPPCS (Pre) 2007 |
|---|
| The Planning Commission (PC) | Established in March, 1950 by a Cabinet Resolution. It was an advisory and non-political body. The Chairman is the Prime Minister of India. Ashok Chandra called the Planning Commission the Economic Cabinet of India. It is noted that there is no mention of the PC in the Constitution, no fix tenure for its Deputy-Chairman and members, and no fixed qualifications prescribed for its members. | U.P. Lower Sub. (Pre) 2009, UPPCS (Pre) 1999, UPPCS (Mains) 2014, UPPCS (Pre) 2018 |
|---|
| National Institution for Transforming India (NITI) Aayog | Formed on Jan. 1, 2015, replacing the Planning Commission. NITI Aayog is the Nodal Institution for implementation of Sustainable Development Goals (SDG) in India. The first Vice-Chairman was Arvind Panagariya. The current CEO of NITI Aayog is B.V.R. Subrahmanyam as of 2025. |
|---|
| National Development Council (NDC) | Constituted on 6 August 1952. The NDC's Chairman is the Prime Minister of India. The NDC is the final authority in India to approve Five Year Plans. NDC and Parliament are associated with 'Planning' in India. | UPPCS (Spl.) (Pre) 2008, U.P.P.S.C. (R.I.) 2014, UPPCS (Mains) 2016, UPPCS(Pre) 2001, 2003, UPPCS (Mains) 2004 |
|---|
| Rolling Plan Concept | Suggested by Gunnar Myrdal for backward countries. Introduced in India by the Janata Government in 1978-79. It consists of three parts: a plan for the current year, a fixed plan revised every year (3, 4, or 5 years), and a perspective plan (10, 15, or 20 years). | UPPCS (Mains) 2004, UPPCS (Mains) 2007, U.P. P.C.S (Mains) 2016 |
|---|
| Second Five Year Plan (1956-61) |
|---|
| Based on the Mahalanobis Model (P.C. Mahalanobis is sometimes regarded as the architect of Indian planning). Focus was on Rapid Industrialization and setting up capital intensive heavy and basic industries. Decision taken to establish a socialistic pattern of society. Adopted the strategy of Import Substitution Industrialization (ISI). |
| UPPCS (Pre) 1991, U.P. R.O./A.R.O. (Pre) 2021 |
| Third Five Year Plan (1961-66) | Based on the S. Chakravarty Model. Focused on the Expansion of basic industries. It had the lowest actual growth rate of 2.8% against a 5.6% target. | U.P. R.O./A.R.O. (Pre) 2021, UPPCS (Mains) 2014 |
|---|
| Plan Holiday (1966-69) | Refers to the period 1966-69. This gap occurred after the Third Plan ended on 31 March 1966, due to the need for three Annual Plans. | UPPCS (Pre) 1999 |
|---|
| U.P. P.C.S. (Mains) 2014, UPPCS (Mains) 2016 |
| Rolling Plan (1978-79) | Suggested by Gunnar Myrdal for backward countries. Introduced in India by the Janata Government in 1978-79. It consists of three parts: a plan for the current year, a fixed plan revised every year (3, 4, or 5 years), and a perspective plan (10, 15, or 20 years) | UPPCS (Mains) 2004, UPPCS (Mains) 2007, U.P. P.C.S (Mains) 2016 |
|---|
| Sixth Five Year Plan (1980-85) | Integrated Rural Development Plan (IRDP) was initiated during this plan (October 2, 1980). NABARD was established in July 1982. | UPPCS (Mains) 2003 |
|---|
| Seventh Five Year Plan (1985-90) | Main slogan was: "Food, Work and Productivity". Jawahar Rozgar Yojana (JRY) launched (April 1, 1989). Achieved 6.0% actual growth against a 5.0% target. |
|---|
| Annual Plans (1990-92) | Period of political uncertainty; the Eighth Plan was postponed by two years. |
|---|
| UPPCS (Mains) 2015, U.P. P.C.S (Mains) 2016, U.P. P.C.S. (Pre) 1996, UPPCS (Pre) 1997 |
| Tenth Five Year Plan (2002-2007) | Targeted GDP Growth Rate: 8.0%. Achieved the maximum economic development rate (actual 7.6%) during the entire planning periods. Aimed to reduce the poverty ratio to about 20% by 2007. Targeted the highest growth rate in the Communication sector (15%). Highest allocation made for the Energy sector. National Rural Health Mission (NRHM) was launched in 2005. | UPPCS (Mains) 2007, U.P. U.D.A./L.D.A. (Pre) 2013, UPPCS (Mains) 2005, U.P. Lower Sub. (Pre) 2003, UPPCS (Spl.) (Mains) 2008 |
|---|
| Eleventh Five Year Plan (2007-2012) | Theme: "Towards Faster and More Inclusive Growth". Achieved the maximum per-capita GDP growth rate. Highest allocation was made for the Energy sector. Aimed to reduce poverty ratio by 10 percentage points by 2012. Largest expected increase of employment was in the Construction sector. Target of setting up 8 new IITs. | U.P. Lower Sub. (Pre) 2008, UPPCS (Mains) 2008, 2011, U.P. U.D.A./L.D.A. (Pre) 2013, UPPCS (Mains) 2015 |
|---|
| Twelfth Five Year Plan (2012-2017) | Theme: "Faster, Sustainable and More Inclusive Growth". Focused explicitly on Sustainable growth. Target GDP Growth Rate: 8.0% (fixed by NDC). Target Agricultural Growth Rate: 4.0%. Highest allocation was for the Social Services sector (34.7% of outlay). Infrastructure investment target was US $1000 billion. This was the last Five Year Plan of India. | UPPCS (Pre) 2018 |
|---|
| The decade 1991-2000 is referred to as 'the decade of jobless growth'. |
| U.P. R.O./A.R.O. (Pre) 2014 |
| India Vision 2020 | Prepared by the committee under the Chairmanship of Dr. S.P. Gupta, a Member of the Planning Commission. |
|---|
| Planned Economy for India | The book was authored by M. Visvesvaraya. |
|---|
| Gadgil-Mukherjee Formula | Used since the 8th Five Year Plan (1992-97) for the allocation of Central Plan Assistance. It gives the highest weightage (60%) to population (1971). | UPPCS (Mains) 2008 |
|---|
| Finance Commission & Statutory Bodies | The Finance Commission (under Article 280) is responsible for distribution of Taxes between Centre and States and providing recommendations for non-plan grants. Both the Reserve Bank of India and the Finance Commission are statutory bodies. | UPPCS RO-ARO 2023 Prelims Re-Exam, UPPCS (Pre) 2021 |
|---|
| National Income Estimation | Estimation of National Income in India is currently done by the National Statistical Office (NSO). Previously done by the CSO (Central Statistical Office, established 1951). | UPPCS (Pre) 1995, 2006, UPPCS (Mains) 2006, UPPCS RO-ARO 2023 Prelims Re-Exam |
|---|
| Poverty Estimation Committees | The Tendulkar Committee (2005) and the Lakdawala Committee are related to the estimation of poverty in India. The Alagh Committee (1977) recommended a poverty line based on nutritional requirements exclusively. | U.P. P.C.S. (Pre) 2020, U.P. U.D.A./L.D.A. (Pre) 2013, U.P. Lower Sub. (Pre) 2013 |
|---|
| Chronological Sequence of Schemes | Prime Minister Rozgar Yojana (PMRY) (1993), Rural Employment Generation Programme (REGP) (1995), Pradhan Mantri Gramodaya Yojana (PMGY) (2000), Valmiki Ambedkar Awas Yojana (VAMBY) (2001). | UPPSC Pre-2024 |
|---|
| Chronological Sequence of Schemes | Integrated Rural Development Programme (IRDP) (1978-79) Swarnjayanti Gram Swarozgar Yojana (SGSY) (1999) National Rural Employment Guarantee Act (NREGA) (2005) Pradhan Mantri Jan-Dhan Yojana (PMJDY) (2014). |
|---|
| Chronology of Key Planning Events | India became member of IMF (1945) First devaluation of Indian currency (1949) First Five Year Plan submitted (1951) National Development Council set-up (1952). | UPPCS (Mains) 2003 |
|---|
| Rurbanization Idea | The idea of 'Rurbanization' was not elaborated by sociologist M. N. Srinivas; It was elaborated by G. S. Ghurye | UPPSC Pre-2022 |
|---|
| Etawah Pilot Project | The Etawah Pilot Project was started in 1948 by Albert Mayer, an American architect and planner, under the vision of Jawaharlal Nehru. It was one of India's first post-independence rural development programs | UPPCS RO-ARO 2023 Prelims Re-Exam, U.P. R.O./A.R.O(Re-Exam) (Pre) 2016 |
|---|
| Sevagram Project | Mahatma Gandhi -1936 |
|---|
| Grow More Food | Jawaharlal Nehru (earliest proponent SC Bose) |
|---|
| Cooperative- Movement | Mahatma gandhi Cooperative Credit Societies Act in 1904, following the recommendations of the Indian Famine Commission and the Edward Law Committee. |
|---|
