an approach to 12th five year plan

1. ANALYSIS OF APPROACH TOWARDS 12TH FIVE
YEAR PLAN
Anupam Sunil (2010 MURP 010)
Aditi Sahu (2010 MURP 002)
Manasi Mangalgiri (2010 MURP 011)

2. India at the time of independence was left with crippling economy by British, which needed
attention and well planned strategies to boom again in the global market.
The Planning Commission was set up by a Resolution of the Government of India in March
1950 in pursuance of declared objectives of the Government to promote a rapid rise in the
standard of living of the people by efficient exploitation of the resources of the country,
increasing production and offering opportunities to all for employment in the service of the
community. The Planning Commission was charged with the responsibility of making
assessment of all resources of the country, augmenting deficient resources, formulating plans
for the most effective and balanced utilisation of resources and determining priorities.
Five year plan objectives:
 To deal with disparity of income and wealth
 Govt. activism required for socially desirable activities with available resources and foreign
exchange
 Govt. intervention required for development of infrastructure
 Balanced regional development.
After the impressive economic growth during 10th five year plan, last four years of 11th five
year plan has faced a global upswing. Saving and investment rates have increased. Industrial
and service sector has contributed to the major economic reforms which suggests that
economy is at a position of becoming self-sustained. However after the global crisis in mid
2008, the pace of development has slowed down a bit with growth rate going down to 6.9%
from 9% in previous years. A major weakness has been lack of inclusiveness of many groups
due to reluctance to any sort of public participation.
This Considering the strategic lacunas and shortcomings of 11th five year plan, planning
commission has adopted a consultative and inclusive approach, that would include
consultations and discussions with different groups of people, in the formulation of plan.
GDP growth would be accelerated during the Twelfth Plan by the private sector, but the
central and state government has a critical importance in providing a policy environment
that supports inclusive growth.
Four critical challenges facing the economy in the Twelfth Plan are:
(a) Managing the energy situation,
(b) Managing the water economy,
(c) Addressing the problems posed by the urban transformation.
(d) Ensuring protection of the environment in a manner that can facilitate rapid growth.
Parameters to access inclusiveness are:
 Its multidimensionality as progress needs to be assessed in many different
dimensions.
 Data relating to various aspects of inclusiveness become available only after a
considerable lag.
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3.  Most policies aimed at inclusiveness have an impact only over a relatively long term,
and results are not evident immediately.
We have seen slower progress in ensuring inclusion than on accelerating growth and this
contrast feeds the public perception that rapid growth has only led to a concentration of
income and wealth at the upper end.
Inclusiveness in the Indian context requires a special focus on particular social groups such
as the scheduled castes (sc) and scheduled tribes (ST), and also the minorities. Since these
groups are concentrated in the lower ranges of the income distribution, reducing poverty or
inequality addresses the concerns of these groups. However, if inclusiveness is defined as
bringing these groups at par with the rest of the population, it has to address the issue of
achieving a fair representation for these groups along the entire income distribution.
Inclusiveness must include progress in delivery of essential services including education,
health, clean drinking water and sanitation.
The different aspects of inclusion are growth in agriculture, reduction in poverty, growth of
employment opportunities etc. Consequences of multidimensionality are that the extent of
progress in different dimensions will vary. Any overall assessment of progress on
inclusiveness will have to be based on a composite view of all these developments.
12 major “STRATEGIC CHALLENGES” have been identified as core areas to be worked upon to
achieve desired goals. These strategic approaches concerns with different sectors that, at a level is
interlinked or overlapping with each other with a degree of influence. Development in one sector
would encourage growth in others.
ECONOMIC GROWTH
 In 12th five year plan, 9% GDP growth is expected. Higher investment and fund mobilization
will induce market development and employment.
 Well regulated and integrated markets would generate enough jobs and live hood
opportunities. Development through efficient capital markets and public private partnership
will further boost the economy and thus may sustain the growth rate of 9 %.
 Growth of a sector through PPP model would lead to decentralization of economies and
inclusion of various sectors, such that a parallel economic development is induced from this
multi-sectoral growth approach.
 Balanced human resource based on industrial and market demands with advanced skills
should propel the industrial growth and capital market.Efficient use of public resources and
manpower would be a key factor in inclusive development.
 Substantial augmentation of capacity, large-scale investment and higher levels of efficiency
in few sectors require changes in the present organization structure.
AGRICULTURE
• India is now self dependent for domestic food demands as a result of green revolution
and previous five year plans. Rural economy growth has to be enhanced by sustained
agriculture growth and development of rural areas by providing rural infrastructure
and amenities.
• A balanced regional development can be achieved through agro-dependent sectors.
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4. • Innovative technologies and open-market economies would enhance HDI of rural
population. For all perishable products investments and institutional development are
more important than subsidies or price support systems.
• Forest economies and tribal societies need greater protection and promotion.
TRANSPORTATION
• In order to attain an overall growth urban governance, urban renewal, finance and
urban transportation reforms should be focused.
• Adequate transport facilities would result in efficient distribution network, thereby
reducing in accessibility and consequently save the cost involved.Improved
connectivity would also help in managing urbanization and reduction of migration in
metro cities, leading to development of small and medium town.
• Energy efficient transport systems needs to be incorporated with emphasis on eco-
friendly and renewable resources.
• Use of hybrid technology in vehicles and more dependency on public transport system
will reduce dependency on petroleum products.
ENVIRONMENT
• With the fast pace of industrialisation, India is already loosing area under forest cover
rapidly. More human interventions will lead to severe loss of habitat.
• Environmental degradation and ecological imbalance are the two aspects which result
out of development initiatives at local and global levels. Growth of economy without
compromising on environment is a key issue to be addressed as, sustainable growth is
essential now.
• Technological advancement, equitable distribution, affordability along with public
awareness is major points of concern.
• Connecting the rivers nationwide will help in hydro power generation, irrigation,
flood control and equitable distribution of water resources.
DECENTRALIZATION
• Previous five years plans have faced the reluctance of public participation.The 12th
five year plan however talks about decentralization, empowerment and information.
• The policy making process should trickles down to the lowest level of society and
more people should have a say in the process.
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5. • Citizens should be well informed and more powers should be given to the public to
efficiently convey the issues by letting people know their powers and rights.
• Steps should be taken so that public participation is not confined to the educated class
of society only. More transparent governance system would reduce corruption and
inequalities in the society.
TECHNOLOGY
• Globalization has led to rapid industrialization and competition in the
market.Technological and organizational innovation will help to enhance productivity
and efficiency.
• Technological innovations leads to faster results and organizational innovation would
help in efficient utilization of resources, facilitated by providing incentives and tax
subsidies.
• An interface should be formed between innovations, academic institutions, industries,
enterprises and government.
HEALTH CARE
• Healthcare conditions are improving in the country but its affordability and
accessibility is still an area to be focused on.Curative and preventive healthcare would
help in increasing general quality of life.
• Focus on women and children is essential but importance to elderly class and
handicaps in order to achieve inclusive healthcare development is essential.
• Shortage of qualified medical personnel at all levels is a major hurdle in improving
the outreach of the healthcare system, especially the public health facilities
ENERGY-
• Energy being the wheel of growth has to be focused to ensure faster and inclusive
growth.
• Dependency on traditional energy resources has to be reduced with more emphasis on
domestic renewable energy production.Use of Non Renewable Sources of Energy
being restricted to priority based industries while promoting Non-Conventional
Energy Resources for rest of the sector.
• Nuclear power program must continue, with necessary safety review. Active efforts
need to be made to allay the apprehensions of people regarding the safety of nuclear
power plants.
• Solar mission is seriously underfunded and requires more support. Wind power too
requires greater support, especially for off-shore locations which have not been
sufficiently explored
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6. EDUCATION
• Education being a concerned sector in five year plans has to be now emphasized more
on accessibility, affordability and quality.
• The employability is to be increased for optimum exploitation of human resources.
Improvement in educational infrastructure, research and developments.
• Vocational education will need to be given greater emphasis and made more
attractive. Skill Development needs a major focus at all levels.
CONCLUSION
The economy will enter the 12th plan period in an environment of great promise but also one that
presents major challenges. India has done well on the growth front, but not so well on inclusion.
Much of what needs to be done to accelerate GDP growth to 9% so will be done by the private
sector, but the central and state governments have a crucial role to play in providing a policy
environment that is seen as investor friendly and is supportive of inclusive growth. Finally, the
efficiency in implementation of projects on the ground needs to be greatly improved. Most of what
needs to be done in this context rests with state governments but the central government must find
ways of improving project design, prioritising resources to fund well designed interventions that
work, devolving resources to lower levels and helping build capacity. Evidence-based evaluation is
critical for redesign and prioritisation.
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