Economic Planning in India

Economic Planning in India

Economic Planning in India – Gradual changes are being seen in the characteristics of many urban and rural Indian settlements. Special inequalities, in physical, economic and social development in the country can be reduced by smart planning by the government and adopting a regional approach.

The Planning Concept

The planning process involves decision making and choices about resource allocation with an aim of attaining efficient and effective utilization and growth of these resources. It is a continuous process at the state level and center, both. The central authority conducts a survey of the economic situation in the economic planning process.

Objectives of the policy are to achieve future goals of the nation.  On March 15, 1950 the National Planning Commission was established in India to shoulder the responsibility of economic planning. Accordingly the first five year plan for 1951-1956 was made. Economic growth and development, increase in employment opportunities, increase in investments, equity and social justice, balanced development within regions and modernization were some of the main objectives of the Plan.


In India, economic planning has come a long way to tackle challenges prevailing in different sectors and has helped in attaining rapid progress in the economy.

Growth In The Economy

Per capita income and national income of the country has increased resulting in growth in the economy.


Introduction of power projects, developing communication and transport, irrigation have been the highlights of infrastructural development in India.

Agricultural Progress

A number of initiatives were implemented like agricultural pricing policies and Green Revolution that have led to agricultural progress and increase in output in this sector.

Growth In Industries

Remarkable progress has been made in sectors like food processing, medicines, cotton textiles, consumer goods, paper, light engineering goods etc.

Public Sector

After independence, a predominant role has been played by the public sector with high profits recorded in metal and mineral industries, telecommunication, financial services, petroleum, transport, lignite and coal and power generation.

Health Care And Education

During the Five Year Plans, considerable progress was achieved in both education and health sector.

Science and technology

Various measures have been taken up by the government to set up new institutions for research, science education, strengthening the R & D infrastructure, launching technology and innovation policy, encouraging private-public partnerships etc.

Growth Of Service Sector

Robust growth has been seen in insurance, financial, business and real estate services. India’s share in world service exports has also significantly increased.

Foreign trade

Trade liberalization has enabled improved exports of thousands of commodities, to hundred of nations across the globe. The country imports around 6000 products from around 140 nations.

Investment And Savings

Capital accumulation, formation of gross capital and increased gross domestic savings has been major driving forces of growth in the economy.


Slow growth, unemployment, neglect of agriculture, inflation, widespread poverty, political instability and rising inequality are some of the short comings of the five year plan.

2. Five-Year Plans

The economic planning concept in India has been derived from USSR. So far 12 five year plans have been launched by India. At present the formation of five year plans by the government have been discontinued.

First Five Year Plan

The issue of severe inflation, food shortage and refugee influx were confronted in the plan. Major focus was laid on agriculture, the primary sector to enhance food production. Production increased due to favorable monsoon conditions thus ensuring good success for this plan.

Second Five Year Plan

Formulated for 1956-1961, major focus of the plan was on rapid industrialization, developing basic and heavy industries. Due to shortage of foreign exchange, moderate success was attained during the Second Five Year Plan.

Third Five Year Plan

Formulated for the year 1961-1966, priority was given to both the industrial as well as agricultural sector. The Plan however failed due to the Indo-Pakistan conflict in 1965 and Indo-China conflict in 1962 as defense requirements were to be met with huge expenditure. Accordingly 3 more plans, 1966-1967, 1967-1968 and 1968-1969 were formulated. Food crisis was overcome during the Green Revolution in the period 1966-1969, where irrigation, quality seeds, pesticides and fertilizers were used extensively.

Fourth Five Year Plan

Formulated for the period 1969-1974 objectives of the Plan were progressive achievement of self reliance and stability in agricultural growth. 33% success was achieved during this period.

Fifth Five Year Plan

Formulated for the period 1974-1979, main objectives of the Plan were attaining self reliance and poverty removal. High inflation levels led to failure of the Plan.

Sixth Five Year Plan

Formulated for the period 1980-1985 by the Congress Government and based on the growth model by Nehru, the main aim was tackling poverty and increasing employment opportunities. Reasonable targets were achieved during the period.

Seventh Five Year Plan

Formulated for the period 1985-1990, main aim of the plan was raising labor productivity, creating employment opportunities and increasing food grain production. Adequate success was attained during the Plan period.

Eighth Five Year Plan

Due to uncertain political situation at the centre, the plan was not formulated in1990. Hence for the years 1990-1991 and 1991-1992, 2 plans were formulated to manage the severe balance of payment crisis.

Ninth Five Year Plan

Formulated for the period 1997-2002 main aim of the Plan was achieving growth with equality and social justice. The economy however performed badly during 1997-1998 making target achievement difficult.

Tenth Five Year Plan

Formulated for the period 2002-2007, the aim was to set measurable targets on development indicators like literacy, sanitation facilities, infant mortality rate, sustainable food production, access to electricity and sustained environment. However, not much success was attained by the Plan.

Eleventh Five Year Plan

Formulated for the period 2007-2012 the objective was attaining inclusive and fast growth. The economy took off well at first but fell drastically due to global financial crisis in 2008-2009. However manageable growth was seen in the economy later.

Twelfth Five Year Plan

Formulated for the period 2012-2017 focus of the Plan was to attain sustainable, inclusive and faster growth.

3. Regional Dimensions of Planning in India

The regional dimensions of planning in India are considered on the basis of investment, saving, income, output, trade and balance of payments, labor and demographic force etc at national level.

In a macro-environment framework, a balance aggregate labor force is sought against work opportunities. However within and across large states, substantial social, economic and demographic variations exist.

In the Ninth Plan period it was expected that balance between work opportunities and work force would see improvement in states like West Bengal, Andhra Pradesh, Orissa, Assam, Maharashtra, Madhya Pradesh, Karnataka, Haryana and Gujarat resulting in decrease in unemployment.  States like Uttar Pradesh, Bihar, Tamil Nadu, Kerala, Rajasthan and Punjab on the other hand see prospects of increased employment and more job opportunities.

Also in the Ninth Plan the unemployment backlog saw an increase, creating the need for labor force expansion at a higher pace in especially states like Uttar Pradesh, Rajasthan and Bihar. Acute acceleration of work opportunities in these States is helpful. Agriculture is an occupation that can provide maximum jobs to many workers in these states. Efforts are also being put in as part of an alternative strategy, to absorb agricultural workers in the secondary sector.

Variations In Employment And Labor Force In Regions

Balance between employment opportunities and labor force can be attained with willingness of people to join the labor force and changes in fertility in States.  Growth profile of regional employment and quality of employment also needs to be consistent.

In the Ninth Plan it is expected that many of the States experience reduction in employment. If demand of excess workers exists then this can be fulfilled through increased remuneration and immigration of workers from other states.

Better earning and employment level is expected in States like Tamil Nadu, Kerala and Punjab. Spatial pattern of growth in labor force, rigidities in labor mobility and job creation should not mismatch so that rate of chronic unemployment is reduced as much as possible.

Increased Employment With Contribution Of Agriculture

The issue of disguised unemployment and underemployment is seen in almost all states, practically. During the Ninth Plan correcting this phenomenon completely is not unlikely in the growth process. With greater focus on available resources and regions, like operating the JRY – Jawahar Rozgar Yojana, it is likely to see endemic unemployment in the coming years.

Identifying Educated Unemployed

Identifying educated unemployed can help in creating opportunities for employment. This is possible by conducting surveys at national levels on unemployment and employment to identify distribution of the unemployed in the regions and country.

Poverty And Employment

Increasing productivity per worker in agriculture can be a lasting solution to eliminate the poverty issue. Immediate steps can be running special employment programmes for employment generation and decrease the number of poor people. Sectoral policies and prospects in the Ninth Plan are sure to have a direct bearing on employment.

4. Integrated Area Development

The Industrial Revolution along with social and economic development both began with Western urbanization. However it has been seen in both in India as well as other developing nations, that development is not reflected in urbanization. There was increase in population in 1901 from 10.84% to 25.72% in the year 1991. However a majority of people in India continue to live in rural areas.  As per statistics cited by S S Solanki and P S Lamba, almost 80% of the people are involved in agriculture and just 52.11 % are literate. Life expectancy is low at 56 years.

The state of affairs in the country does not seem satisfactory as per statistics. The role of technology and science in development, not so favorable socio-economic changes, migration related issues and spatial disparity are issues that still need to be dealt with. A sense of discontentment is still felt with the current state of affairs.

Integrated Micro Approach

A much more integrated approach towards development is required by providing financial, health and educational facilities to people and using suitable technologies, in both regional and national planning activities. Some of the regions in India are abundant in natural resources and do have outstanding potential for development. However due to extremely low per capita income and abundant underemployed and unemployed labor, these regions are not able to develop to their fullest capacity.

It becomes difficult for the country to meets its macro goals of raising incomes and reducing unemployment. Hence it is very essential to use a micro-approach for an integrated development of regions. This can be best achieved with close coordination between various government agencies, expanded extension service, shifting of authority to the coordinating and local level body from the government authority so that effects and sequences of different programmes are monitored with various area plans. In the process, disparity between regions can be reduced.

Integrated plans for select areas and creating of district plans have to be taken up. Some of the integrated plans include:

Development plans for hilly regions

Initiating primary activities like forestry, horticulture and animal husbandry

To start suitable industries in the villages

Exploit local resources of hilly regions

To take up measures for the purpose of conservation

Development In Drought Prone Areas

Introduce relief operations

Provide employment to people living in drought prone regions

Planning In Metropolitan Regions

Rapid urbanization does pose problems in metropolitan regions. Immigration of people from rural areas to urban areas and minimize effects of rapid urbanization, urban master plans have been prepared for port and capital cities. In the year 1955 an urban master plan was prepared for Delhi for development of satellite towns in its surroundings.

Development plans for tribal regions

Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, Orissa, Andhra Pradesh, Orissa are states having tribal population of more than 50%.

Development plans have to be taken up to upgrade these states

5. Integrated Rural Development Programme (IRDP)

The IRDP – Integrated Rural Development Programme was launched in 1978 by the Indian Government and implemented in 1980. Main aim of IRDP was providing employment opportunities to the poor as well ensure that people living below the poverty line benefit from necessary subsidies in tandem with opportunities for employment. The IRDP aims to help people to improve their standard of living which can be best achieved if people develop their skill sets as well.


Enhance the state of living of people

Help families living below the poverty line

Empowering people in every aspect of development

Providing productive inputs and assets to all targeted groups

Financial assistance in the form of credit or loans from financial institutions (like regional rural banks, cooperatives and commercial banks) and subsidies from the government

IRDP Beneficiaries


Artisans from rural areas

Agricultural laborers and marginal farmers

Economically backward classes having an annual income below Rupees 11,000

Scheduled tribes and scheduled castes

Percentage Of Subsidies Offered

Agricultural laborers and marginal farmers (33.33%)

Small farmers (25%)

Differently-abled people and ST/SC families (50%)

Rupees 6000 as the maximum amount of subsidy provided to the differently abled people and SC/ST families.

Rupees 5000 for DDP and DPAP localities

Rupees 4000 for non DDP and non DPAP localities

In this group, SC/ST candidates are guaranteed 50% subsidy, women with 40% subsidy and differently able people with 3% subsidy.  Besides this the first priority is given to people who have been given the ceiling surplus land. Priority is also given to family welfare programmes and people belonging to free bonded laborers.


Various agencies have been given responsibility of implementing the IRDP

SLCC – State Level Coordination Committee (at the state level)

Ministry of Rural Areas and Employment (whoever is responsible for policy formation, release of funds, guidance and monitoring and evaluation of programmes.

Block staff at the grass-root level

DRDs – District Rural Development Agencies


The IRDP is a scheme that is Centrally Sponsored. It is funded by the states and centre on a 50:50 basis. Since the year 1980, the scheme has been in operation in all parts of the nation. Respective states are provided funds on the basis of proportion of poor people living in rural areas in the country and in the state.

The IRDP is important in terms of rural development to both regional and national planning activities.  This is achievable by including an expanded extension service, shift in government authority to the coordination body and local level for monitoring effects and sequences of various programmes within the area plans and proper coordination between various agencies of the government.

6. Development of Backward Areas

Backward and rural regions in India are many and require development. This can be best done by promoting industries in those areas. The main responsibility of Industrial development in backward regions is of the government of each state. Efforts of the states are supplemented through the launching of different schemes by the Union Government, for promoting industries in backward regions of the country.

A number of schemes are implemented by the DIPP – Department of Industrial Policy and Promotion so that backward regions in India become industrially developed.


As per the NEIIPP – The North East Industrial and Investment Promotion Policy, notifications have been given w.e.f. 01.04.2007 to states of Tripura, Arunachal Pradesh, Sikkim, Assam, Nagaland, Mizoram, Meghalaya and Manipur. However, extension also has been given to them up to 31.03.2017. The policy provides the following incentives:

100% Exemption From Income Tax

Central Capital Investment Subsidy Scheme

Excise Duty Exemption On Value Addition Basis

Comprehensive Insurance Scheme

Central Interest Subsidy Scheme

Special Package Scheme (Uttarakhand And Himachal Pradesh)

To promote industries in Uttarakhand and Himachal Pradesh, an industrial incentives package was announced by the Indian government on 07.01.2003. Up to 06.01.2013 it was implemented after which modifications were made and further extension was given from 07.01.2013 to 31.03.2017.

All new units are provided with Capital Investment Subsidy under the modified package. Substantial expansion is also provided to existing units @15% of investment of plant and machinery but this is subject to a ceiling for MSME units up to Rs.50 lakh and for others it is Rs.30 Lakh.

Special Package Scheme (Jammu And Kashmir)

Validity of the modified Special Package Scheme is up to 14.06.2017.

The modified Special Package Scheme for Jammu and Kashmir is valid up to 14.06.2017. Provision of the below given financial assistance is made under the scheme:

For all new units the Capital Investment Subsidy on substantial expansion for MSME is @30% of investment in machinery and plant with a ceiling of Rs.3 crores for manufacturing units, Rs.1.5 crore for service units. The rate is 15% of investment in plant and machinery for other units and the ceiling is of Rs.30 Lakhs.

Interest subsidy is @3% on the average daily working capital for a 5 year period from the day of the commercial production commences.

Existing and all new units to be provided insurance subsidy, to the extent of 100% on substantial expansion for a 5 year period from the date commercial production commences.

FSS – Freight Subsidy Schemes 2013, TSS – Transport Subsidy Scheme, 1971

For the states of Jammu and Kashmir, Himachal Pradesh, Lakshadweep Islands, Andaman and Nicobar Islands, Uttarakhand, Darjeeling district of West Bengal and 8 North Eastern States the scheme has not been continued w.e.f. 22.11.2016.

To boost investment in Himachal Pradesh, the Principal Secretary (Industries), Government of Himachal Pradesh made a request for extending the Capital Investment Subsidy Scheme for a further 5 year period.

Chief Secretary of Uttarakhand and Chief Minister of Jammu and Kashmir too made request to package extension on the pattern of North Eastern States. A committee has been constituted by the Indian Government for examining and suggesting a strategy for introducing new policy for the Himalayan and North Eastern States. To study the new industrial policy and to consult stakeholders the Committee met on 23.02.2017, 15.03.2017 and 31.03.2017.

7. Command Area Development

Launching of the Command Area Development Programme was done with the aim of enhancing the utilization of potential created for irrigation. Besides this it aimed at optimizing the productivity from irrigated agriculture and production in agriculture.  The Area Development Authority would monitor the development with the help of a team.


It has been seen that great importance was given to creating of additional potential for the purpose of irrigation. However, not much progress was attained and accordingly in 1974-1975, the Centrally sponsored CAD – Command Area Development was launched.

The CAD Programme undertook around 60 medium and major projects of irrigation, initially. It was able to cover around 15.00 million hectare CCA – Cultivable Command Area. Under the programme till now there are around 314 projects with a CCA of 28.95 million hectares from the year 1974-1975.

Project Implementation

New projects had been included, completed projects had been deleted and new projects have been clubbed. As of now around 136 projects are being implemented. With effect from 1st April 2004 the programme was renamed and restructured as CADWM – Command Area Development & Water Management. During the Five Year Plan (2009-2009 to 2011-2012) implementation of the scheme has been done as a State Sector Scheme.

Emphasis Laid On

As far as Water Resources Management is concerned, emphasis is laid on participatory approach by the National Water Policy of 2002. It has been identified that if the beneficiaries in management of water resources participate, then this can help in ensuring upkeep of the irrigation system more appropriately besides which irrigation water will be utilized to its optimum.

Farmers should be made to participate in irrigation management so that the responsibility towards water collection charges from the WUAs –Water User’s Association, the maintenance and operation work is taken up by them. Under the programme, the registered WUAs are provided with one-time functional grant. It has been made compulsory that a minimum of 10% contribution will be for the beneficiaries in costs related to full package of OFD works, field channel construction, the reclamation of areas that are water logged besides one-time functional grant to the WUAs.


Evaluation of the CAD programme has been made which indicates that it has had a positive impact of different important indicators including efficiency in irrigation, increase in the area irrigated, production and productivity, etc. However it has been seen that in many of the irrigated commands, the water logging issue has come up, even if adequate efforts are being put in for proper irrigation water management.

Around 482 schemes of 9 States including Uttar Pradesh, Odisha, Maharashtra, Kerala, Karnataka, Jammu and Kashmir, Madhya Pradesh, Gujarat and Bihar, have attained approval for reclaiming 63,566 hectares of water logged area, under the component of water logged area reclamation. Upto March 2009, these States have reclaimed an area of around 50,249 hectares as per reports.

8. Watershed Management

Watershed management is a process in which land and resources of other kinds in a watershed are guided and utilized to provide desired goods and services in a way that soil and water resources are not adversely affected.

Under the watershed management programme, efforts are taken at a micro-level to for achieving the objectives by treating unproductive or under-productive land and undertake allied activities, so that landless people benefit from it.

A common strategy of multi resource management is adopted in which all stakeholders within the watershed are involved. As a group and with fullest cooperation, the concerns and resource issues of the watershed are identified. Accordingly economically, socially and environmentally sustainable solutions are found.

The NWDB – National Wastelands Development Board has been set up in 1985 by the government, under the Ministry of Environment and Forests, to speed up the pace of degraded land and wasteland development.

In 1992 a separate department of Wastelands Development was created in the Ministry of Rural Development and Poverty Alleviation, after which the NWDB was transferred to it.

In 1999 the Department of Wastelands Development was named again as the Department of Land Resources so that it serves as a nodal agency for management of land resources.

Gradually the Land Reforms Division and all land-based development programmes came under this department. The department implemented the watershed management programmes including, IWDP-Integrated Wastelands Development Programme, DDP-Desert Development Programme and DPAP-Drought Prone Areas Programme for optimum use of integrated planning, sustainable outcomes and resource use. The IWDP, DDP and DPAP were amalgamate as the WDC-PMKSY – Watershed Development Component of Prime Minister Krishi Sinchayee Yojna.

Objectives Of The WDC-PMKSY Include:

Developing, conserving and harnessing degraded resources like water, vegetative cover and soil

Rainwater harvesting, natural vegetation regeneration, preventing soil erosion and recharging ground water table

Introducing diverse agro-based activities, enabling multi-cropping, providing sustainable livelihoods

Restoring ecological balance

Features Of WDC-PMKSY

Cluster approach in project selection and preparation (Approx 5000 hectares)

Appointing multi-disciplinary experts at dedicated institutions at State level, district level, project level and village level

Following a pattern of uniform funding between States and Centre (90:10)

Ensure flexibility in the project period i.e. 4-7 years

Increasing reform cost from Rs.6000 per ha. to Rs. 15000 ha. in hilly/difficult areas and Rs.12,000 ha. in plains.

Release assistance from the Centre in 3 installments (20%, 50%, 30%) instead of 5 installments

Use GIS facilities, remote sensing techniques and IT for evaluation, monitoring and planning

Reserving funds for the project for DPR preparation

Introducing components for new livelihood for asset-less people and production system and micro-enterprises

The power of sanctioning projects, delegated to the States

9. Area Development Programmes

During the Fifth Plan, an important development – Area Development Programmes took place with an aim of preparing sub-plans on the basis of regions. Main aim was to make sure that a particular order is followed in effort put in for normal development by using state plan funds and special assistance from the centre. Special attention was to be given on evolving strategies and pattern for development while keeping in mind problems and local resources of the area.

The Approach

Hill Area Development

Out of the total landmass in India, around 17% comprises hilly areas. The 2 categories in which these areas fall into are:

1.Co-Extensive Regions Having Boundaries Of The Union Territory Or State

These are areas termed as ‘Special Category States’ having their outlays met by the Centre. Himachal Pradesh, union territories and states of the North-Eastern Region and Jammu and Kashmir are included in this category. As far as integrated development of union territories of the North-Eastern region and hill states is concerned, in 1971, the North Eastern Council was set up as per a Parliament’s Act.

Schemes taken up are mostly ones having common interest to more than one Union Territory or State or to a particular region as a whole under its plan for development. Development includes areas related to fisheries, power generation and transmission, animal husbandry, agriculture, road construction etc. Experimental and research projects are provided support. To develop manpower in the region, a training infrastructure has been constructed.

2.Areas That Form Part Of A State

Some of the hilly areas that form a part of a larger composite state are found in West Bengal in the sub-Himalayan region of the Himalayas (Darjeeling), Uttaranchal (Dehradun, Nainital, Pauri Garhwal, Pithoragarh, Chamoli, Almora, Uttarkashi) and Assam (North Cachar and Karbi Anglong). After the Second Five Year Plan, systemized assistance is being provided by the Centre besides the concerned state governments. Equal weightage is given to population and areas of the hilly areas with Special Central Assistance. The sub plan concept introduced ensures complementarily and one linkage amongst different schemes formulated under various sectors of the State Plan and Centre additive.

Central assistance is also being provided for programme development, to hilly areas over the Western Ghats in states of Kerala, Maharashtra, Goa, Tamil Nadu and Karnataka as well as Tamil Nadu hilly area.

Guiding Principles For Hilly Area Development

Using biotic resources, water, minerals and land in a judicious manner

Securing basic life support system

Active participation from the people especially women in fulfilling basic needs

Resource management at local level

Introduce specially designed programmes for animal husbandry, poultry, soil conservation, forestry, bee-keeping, village industries, agriculture, plantations and horticultural development.

Tribal Areas

Tribal areas constitute Nagaland, Mizoram, Lakshadweep, Dadra and Nagar Haveli, Meghalaya and Arunachal Pradesh.

Major Concerns

Improve life of tribal communities

Narrow down the gap between the levels of development of tribal and other regions

Design programmes suited specially for people living in the tribal areas

Tackling issues like bonded labor, shifting cultivation and alienation of land

10. National Watershed Development Project for Rainfed Areas (NWDPRA)

The NWDPRA-National Watershed Development Programme for Rainfed Area is a MMA-Macro Management of Agriculture Scheme of the Department of Agriculture and Cooperation launched in 2 Union Territories and 25 states in 1990-1991. The proposed plan was to treat a 2.25 million hectare area.


Minimizing regional disparity between rainfed and irrigated areas

Sustainable management, development and conservation of natural resources

Ecological balance restoration in fragile and degraded rainfed ecosystem by planting grasses, shrubs and trees

Sustained enhancement of agricultural production and productivity

Creating opportunities of sustained employment for landless people and those living in rural areas

Guiding Principles

To make modifications at different levels subject to the condition that the Common Guidelines for Watershed Development Projects issued by the NRAA-National Rainfed Area Authority, WARASA ANASAHABHAGITA guidelines as well as those approved for the MMA-Macro Management of Agriculture scheme of the Department of Agriculture and Cooperation


Improving recharge of underground aquifers and water resource development

Treating non-arable lands for biomass production and moisture and soil conservation through pasture development, horticulture and afforestation

Treating arable lands for better moisture and in-situ soil conservation and ensuring cost effective production, using minimum infrastructure for replicable and sustainable cropping techniques and measures for soil conservation

Increasing average income of landless families and marginal and small farmers through casual employment on marketable surplus of daily and agricultural produce by growing vegetables and other cash crops

Making alternate use of land to avoid ploughing of steep slopes and thus reduce soil erosion and runoff by taking up silvipasture, silviculture and horticulture

Improve living standard and social status of watershed inhabitants

Project Area

Implementation of the project in selected watersheds which are approved by the SLNA –State Level Nodal Agency constituted by the State Government

Continued implementation of watersheds approved and selected by the SWC-State Watershed Committee as per the WARASA JANASAHABHAGITA guidelines for execution, in the XI Plan period

Project Period

Period of implementing the NWDPRA is five years


Departments like agriculture, watershed development, land development corporation and soil conservation of different states are implementing the NWDPRA programme. The ATMA-Agriculture Technology Management Agency an autonomous agency established in some districts, also take up the implementation work.

Criteria For Watershed Project Selection

Priority micro watersheds to be identified

Blocks in arable land having less than 30% assured means of irrigation

To make sure that targeted activities are complemented during the plan period

Identifying villages that have prioritized watershed on the basis of degraded lands, preponderance of wastelands, drinking water shortage, extent of ground water exploitation, willingness of the community, watershed contiguity, non availability of irrigation etc

No overlapping of the NWDPRA watershed area with any other ongoing /developed watershed project funded by the State Governments or any other agencies


11.Rainfed Area Development Programme (RADP)

Under the NAPCC- National Action Plan on Climate Change, one of the 8 outlined missions is the NMSA-National Mission for Sustainable Agriculture with the aim of sustainable agriculture promotion through measures taken for climate change adaptation. Enhancing agricultural production in rainfed areas mainly is the major thrust. Thus the focus is on health management of soil, integrated farming and resource conservation synergization.

NMSA has a number of schemes, including the RAD-Rainfed Area Development programmes. The RFS Division has implemented it.


·         Reducing risks related to variability in climate and enhance enhancing production

·         Focus on IFS – Integrated Farming System

·         Integrate the cropping system with activities like apiculture, horticulture, agro-forestry, fishery, livestock, etc. With this farmers can maximize their farm returns for sustenance of livelihood. Impact of extreme weather, flood or drought events can be mitigated with income opportunities from allied activities when crops get damaged.

Guidelines For RADP

A document was prepared in 2011 by the Department of Agriculture and Cooperation relating to the proposed programme to increased productivity in agriculture as well as increase livelihood security of farmers in rainfed regions.

In India the rainfed area is around 57% of the total agricultural land. In terms of livelihood, agricultural productivity and ecology, these areas hold unique significance. Rainfed areas are able to contribute a bigger share in food grain production, if they are managed properly.  Actually as compared to irrigated areas, the rainfed areas have better chances for faster agricultural growth.

Encouraging exploitation of farming systems of different kinds is the main aim of this programme. Accordingly farming systems based on natural resource endowments created by schemes or farmers like the RKVY-Rashtriya Krishi Vikas Yojana, MNREGA- Mahatma Gandhi National Rural Employment Guarantee Act and NHM-National Horticulture Mission are taken into consideration in attaining success of this programme. This way the risks to crops due to fluctuations in weather, assurance of livelihood and food security and harnessing resource efficiency is made possible.


·         Improving life quality of marginal and small farmers is the objective of the programme. A package would be offered to increase agricultural production, minimize the adverse effects of crop failure, restore confidence in farmers with this agricultural form and maximize returns obtained from farms. Improved on-farm technologies can create sustained opportunities for employment.

·         Focus would be laid on inter-cropping, multi-cropping, mixed-cropping, rotational cropping besides activities including livestock, horticulture, etc.  Impact of drought, floods, etc would be mitigated and farm returns would be maximized.
Minimum tillage practice

·         Considering the cluster approach to use potential of created or available common resources

·         Support of existing activities of income generation like mushroom, fisheries, agriculture, etc and organizing complementary activities like supply of pumps, construction of wells and ponds, land treatment, etc

·         Provide storage structure and value addition support to encourage improved returns on farm produce.

12.Multi-Level Planning

The planning process can be multi-level or single-level.  In the single level planning, the process is centralized and decisions are taken at the national government level. It is only after the implementation stage that lower territorial levels come to the scene. In the case of multi-level planning process, territory of the country is separated into small territorial units, depending upon the regional and geographical structure and size of the country.

Planning work is done for various regions. Framework for lower level areal plans is provided in the case of higher level regional plans, whereas base for higher level planning is provided by lower level planning. People participate directly in such plans. It is only after passing through the different stage that the national planning objectives reach the grass-root-level.

Multi-level planning involves sharing of planning functions and policy with the sub-national levels. Six principles need to be followed to create required procedures and mechanism for effective information flow for planning as well as continuous interaction with participating levels.

  1. The Principle of public participation
  2. The Principle of function-sharing
  3. The Principle of decentralizing administrative work
  4. The Principle of decentralizing finance
  5. The Principle of integration and nesting of plans
  6. The relay-re-relay process or the iteration Principle

In India, Five Stages Are Followed In The Multi-Level Planning Process:

1.National Level-sectored cum inter-state  / inter-regional planning

2.State Level-sectored cum inter-district / inter-regional planning

  1. District / Metropolital Level – Regional planning

4.Block Level-area planning

  1. Panchayat Level-village planning

1.National Level

The nodal agency is the national level Planning Commission. It takes up responsibility of plan preparation and coordinating the sectored development work of various ministries of Union Territories and Central Government, in the country. Chairman of this Commission is the Prime Minister. The NDC-National Development Council supervises functions of the Planning Commission. Guidelines are issued by the Planning Commission to various States for evaluating and monitoring existing plans, formulating plans and district or regional planning for coordinating plans.

  1. State Level

The State Planning Board works like the National Planning Commission to coordinate plans of development of various districts and ministries. It also formulates implements and monitors the State plans. Priorities and objectives of plans laid down are best achieved when the States and Centre move and work in unison.

  1. District Level

A pivotal position is occupied by districts in the local level planning process, mainly due to their administrative and location advantages and with greater utilization and mobilization of local resources.

4.Block Level

Development blocks are vital units of micro-level planning. They supervise the developmental plan implementation under the Community Development Programme which was started during the First Five Year Plan.  People’s participation in the decision making process and mobilization of resources locally available are visualized by the programme.

5. Panchayat Level

A 3 tire structure is followed in the Panchayati Raj System, namely village level, block level and district level. As per the Constitution Amendment Act 1992, the Gram Sabha or the Panchayat has authority to look after plan preparation and implementation to establish social justice and economic development.

13.The Damodar Valley Corporation

The DVC-Damodar Valley Corporation is a popular multipurpose river valley project, established by the Act of the Constituent Assembly of India on July 7, 1948 in Kolkata, India. It is modeled on the Tennessee Valley Authority of the USA. The DVC has 2 part-time members (generally the Secretary of the Power Dept –Bihar and West Bengal – representing respective states) and one full time Chairman.

Main vision of DVC is to establish it as a mega pithead producer and distributor of power in the Eastern region of India and in the process facilitate all round development of the region and enhance the quality of the life of the people.

To ensure that the DVC attains early success, special interest was taken in the project by the Chief Minister of West Bengal – Dr.B.C.Roy, Chief Minister of Bihar-Sri Krishna Sinha and the Prime Minister-Jawaharlal Nehru.

Milestones Achieved

  • First multipurpose river valley project undertaken by the Indian government
  • The first underground Hydel station of India set up at Maithon
  • It’s the only GOI organization that generates power through liquid, water and coal fuel
  • The first re-heat units using high steam parameter at Chandrapura TPS, in India
  • The biggest thermal power plant at Bokaro TPS, India
  • The first BTPS boilers to burn untapped low grade coal in pulverized fuel furnaces
  • The first of its kind in Eastern India, the DIPC –Direct Ignition of Pulverized Coal for reducing consumption of coal in the boiler conceived, in Eastern India at Mejia, TPS for the first time

Initial Focus Of The DVC

  • Electricity transmission and distribution
  • Flood control
  • Creating irrigation potential
  • Afforestation and eco-conservation
  • Creating jobs for socio-economic well being of people residing in an around DVC project affected areas
  • Four major dams are controlled by the DVC

Thermal power stations at Mejia, Bokaro, Durgapur and Chandrapura are operated by the DVC. Expansion of thermal power capacity of the DVC is ongoing after which more mega watt power would be generated.

DVC activities cover a total valley area of around 24,235 square kilometers. The districts of Koderma, Dumka, Hazaribagh, Lohardaga, Giridih, Ranchi, Chatra, few sections of Palamau, Bokaro and Dhanbad comprise the Upper Valley. The Lower Valley comprises of Bankura, 2 districts of Hughli and Bardhaman and some areas of some areas of Purulia, Bankura and Howrah Districts in West Bengal.

Joint Venture Projects

  • BPSCL – Bokaro Power Supply Co. Ltd is a joint venture company of DVC and SAIL has been established to maintain and operate the captive steam and power generation plant, transfer of ownership by SAIL and its Bokaro Steel Plant and supply power and steam to Bokaro Steel Ltd, exclusively.
  • Maithon Power Limited – is a joint venture company by DVC and Tata Power to implement 1000 MW Maithon Right Bank Thermal Power Project to meet energy needs of regions deficient of power, on export basis
  • DVC EMTA COAL MINES LTD is a joint venture company formed with Eastern Minerals & Trading Agency for the operations and development of Captive Coal Mine Blocks and supply of coal exclusively to DVC Thermal Power Projects of the 10th and 11th

14.The National Capital Region (National Capital Region)

In the year 1991the new economic policy was adopted and after that the MSEs –Micro and Small Enterprises began thriving in an exhilarating politico-economic environment in India.  A major thrust was felt in Delhi and its surrounding areas too. MSEs are a major attraction for industrial employment for people. Delhi began experiencing population pressure as well as pressure on its infrastructure, making it necessary to reorient the development plan in the region.

Districts In The NCR

The National Capital Region Planning Board enacted the National Capital Region Planning Board Act in 1985. Seven districts of Haryana including (Sonepat, Faridabad, Rohtak, Gurgaon, Rewari and Jhajjar), one district of Rajasthan (Alwar) and five districts of Uttar Pradesh (Meerut, Bagpat, Ghaziabad, Bulandshahr and Gautam Budh Nagar) with Delhi at its core were included in the NCR-National Capital Region. It has 4 constituent sub-regions, presently.

The Urbanization Trend

The trend that India is heading towards urbanization is completely visible in NCR. Almost 31.2% people live in urban regions as per the 2011 Census and as per NCR 62.5% of the population live in urban regions. If NCT Delhi is excluded, then NCR is less urbanized to the extent of 27%, however.

Since the last 30 years, there has been a million-plus cities in India, almost 4 times over. Population has increased in millions and accounts for 43% of the total population living in urban areas in India. In India there around 53 million-plus cities, out of which Faridabad, Delhi, Ghaziabad and Meerut fall in the NCR category. In future, Gurgaon UA too could become a million-plus city.

During 1941-1951an extraordinary population growth was recorded by NCT – Delhi. This indicates that above 50% almost has been the average decadal population growth.  During 2001-2011 the growth rate declined further.

During 1941-1951, the growth rate of population in Delhi was around (90%) mainly due to the inflow of refugees in large numbers after the Partition. Accordingly, in 1956, an Interim General Plan was prepared for Delhi, that focused on planning the Delhi in the context of regions.  The need for planning Delhi in the regional context was recognized as per the MPD-Master Plan for Delhi – 1962 for the perspective year 1981.  In 1961, a High Powered Board was set up by the Indian government, taking cognizance of the draft MPD recommendations. The board was formed again in 1973 under chairmanship of the Union Minister of Works and Housing. The TCPO-Town and Country Planning Organization was entrusted the work of preparing a comprehensive Regional Plan. Accordingly the Regional Plan-1981was prepared by TPCO for NCR in the year 1973, which the High Powered Board approved.

Functions Of The NCR Planning Board

  • Arranging the preparation of Project Plans and Sub-Regional Plans by the Union Territory and each of the participating States
  • Coordinating implementation and enforcement of Functional Plans, Regional Plan, Project Plans, Sub-Regional Plans through the participating Union Territory and States
  • Preparing Functional Plans and Regional Plan
  • Arranging and overseeing the financing of selected development projects in the NCR through plan funds from the State and Centre and other revenue sources.
  • Ensuring systematic and proper programming by the UT and participating States with respect to determining priorities in the NCR or sub-regions, formulation of projects and phasing of NCR development in accordance with stages indicated in the Regional Plan.

15.Poverty in India

Almost 28.5 percent of the population in India lives below the line of poverty. Estimates are that in villages poor people earn 27 Rupees a day and in 33 Rupees per day in the cities. With sky rocketing commodity prices, survival of the poor is difficult. As per statistical data any individual earning Rupees 40 daily also could face tough situations in life.

Attempts are being made to reduce the level of poverty India by introducing welfare programmes in rural areas however urban counterparts still continue to be under the poverty line. Despite attempts to improve the situation, there is still increase in the overall poor population.

Poverty Related Issues

  • Low paced development
  • Crime
  • Inability of under-privileged children to go to school
  • Living on street areas
  • Begging for meals
  • Living in unhygienic conditions
  • Poor health


Poor Class Categories

  • Labor class
  • Dalits
  • Tribal people
  • Casual workers in cities
  • Farm workers in villages

States Where Maximum Poor Live

Around 85% of the people are tribals in states like Uttarakhand, Bihar, Uttar Pradesh, Jharkhand, Chhattisgarh, Odisha and Madhya Pradesh. Besides this, these regions are exposed to calamities, floods etc which hamper agriculture to great extents. Income of the people thus gets affected.

India ranks, 97th in the GHI-Global Hunger Index, as per the GHI- Global Hunger Index Report – 2012 conducted by the International Food Research Institute, India.

The percentage of underweight children below five years of age is very high. A great share of poor is in India currently. However it is expected to drop by 22% and more in the future. Everyone has the right to live a healthy life and hence poverty in India must be eradicated.

Causes Of Poverty

  • High population growth which in turn leads further to poor health care facilities, high illiteracy levels, lack of access to financial resources and job shortage
  • Underdevelopment of the economy
  • Increasing prices of basic commodities
  • Unequal resource and income distribution
  • Caste system
  • Unorganized sectors pay skilled workers lesser pay
  • Ownership of industries in the hands of few small businessmen
  • Huge wealth and profit accumulation by some
  • Tax evasion leading to growth of black money

Social workers and economists have defined poverty when people and families lack basic amenities like floor space, food, adequate medical care etc, regardless of the income earned. Depending upon the monsoons, the incidence of poverty can change from year to year. Over the 1980s and 1990s, poverty has gone down indicate studies.

Measures Taken By The Government

  • As per the Fifth Plan, the number of employment opportunities was increased to improve the living standards of the masses, which didn’t happen however. The poor continue to remain poor and are not able to earn enough and be able to invest in any other sector of the economy.
  • Encouraging small scale industries to generate self employment and more employment opportunities
  • Land reform measures
  • Family planning programme for population control
  • Control growth of large business houses by passing the MRTP Act – Monopolies and Restrictive Trade Practices Act in 1969.
  • Special programmes like the FWP-Food for Work Programme, SFDA and MFAL-Small Farmers’ and Agricultural Labourers’ Development Agency, CSRE-Crash Scheme for Rural Employment, DPAP-Drought-Prone Areas Programme, etc



16.Geography And Regional Planning

The planning process is centralized in India. Headed by the Prime Minister the Planning Commission of India is entrusted this task of planning. Recently however it is termed as the NITI Aayog – National Institution for Transforming India. An array of Five Year Plans is followed to carry out the task of planning in India.

The current Twelfth Five Year Plan initiated in the year 2012 focuses mainly on a Sustainable, More Inclusive and Faster growth. Basically there are 2 approaches towards planning namely:

  1. Sectoral Planning.

Sectoral Planning includes forming and implementing sets of programs or schemes towards development of different sectors of the economy like manufacturing, agriculture, transport, irrigation, construction, power, social infrastructure, communication and services.

2.Regional Planning.

In India, all the regions are not developed on the same line and hence regional planning has been introduced to reduce imbalances present within regions.

Target Area Planning

The ‘Target Group’ and ‘Target Area’ approaches towards planning by the Planning Commission were to reduce the social and regional disparities. A few examples of Target Area Planning for target area development include:

Hill Area Development Program

Command Area Development Program

Desert Development Program

Drought Prone Area Development Program

MFDA –Marginal Farmers Development Agency

SFDA – Small Farmers Development Agency

Drought Prone Area Program was initiated during the Fourth Five Year Plan with the main aim of providing people with employment and creating productive assets in the drought prone areas. The arid and semi-arid tract of Rajasthan, the Telangana and Rayalseema plateaus of Maharashtra, western Madhya Pradesh, Gujarat, Marathwada region of Maharashtra, Karnataka Plateau and the interior parts and highlands of Tamil Nadu fall into the category of drought prone areas of India.

Hill Area Development Program: This program was initiated during the Fifth Five Year Plan. Around fifteen district comprising of hilly districts of Darjeeling district of West Bengal, Mikir Hill and North Cachar Hills of Assam, Uttarakhand and Nilgiri district of Tamil Nadu.  The aim was to harness the hilly region’s indigenous resources by developing plantation agriculture, horticulture, village and small scale industry, forestry, poultry and animal husbandry.

Facts About Planning

67 districts were drought prone areas (partly or entirely) identified by the Planning Commission in 1967.

The criterion of 30% irrigated area was introduced by the Irrigation Commission in 1972 and accordingly drought prone areas were demarcated by the Planning Commission.

The ‘development’ definition was incorporated with phrases like redistribution with growth and growth and equity, in the 1970s.

The meaning of ‘development’ did not remain restricted to just ‘economic growth’ over a period of time. It included issues like equality of opportunity, improving the standard of living and well being of people, education, availing health facilities and ensuring civil and political rights.

In the late 1960s the ‘sustainable development’ concept arose in the wake of general rise in awareness of environmental problems in countries in the West.


17.Regional Planning and Development of Island Territories

Almost 2/3rds of the population in the world live near coastal areas. Oceans are an important source of gas, oil and energy, chemicals, minerals and fisheries. Islands are distinctive to oceans and are exposed to environmental and natural disasters. Also their capacity to recover is limited. Ecosystem of islands gets threatened due to increasing amount of hazardous and waste substances, limited fresh resources and limited facilities to dispose wastes. The main energy resource which islands depend upon is petroleum. Islands are fascinating destinations for tourists.

Lakshadweep Islands

In 1973, the Amindivi, Minicoy and Laccadives group of islands were renamed as Lakshadweep Islands. Also known as Emerald Islands, these islands comprise 27 uninhabited and inhabited coral islands, 5 submerged banks, 3 reefs and 12 atolls. With an area of 32 sq. km, they lie scattered irregularly in the sea. During ancient times, they served as a navigation landmark. The islands are popular for the mineral deposits like calcium carbonate and phosphate, coconut trees, sea grass beds, mangroves, coral reefs rich in fauna and around 300 species of ornamental fish. The major income source for the Scheduled Tribe people here is fishing and has immense potential for seafood and marine fisheries development, besides tourism. Coconut cultivation, poultry and fishing are important occupations of the people. Extraction of coconut fiber and converting it into fibre products are important industries here. A handicraft production cum training center functions on the island.

Sagar Island

Also called as Gangasagar, the Sagar Island spreads across 300 and is popular for its scenic beauty and cultural-religious significance. It is home to the endangered Royal Bengal Tiger and a pilgrimage centre for Hindus. Small rivers, waterways and mangrove swamps are found on the island. Linking it with the mainland is an important plan of the government. The potential of developing the island as a tourist destination is huge.

Andaman And Nicobar Islands

The Andaman and Nicobar are a collection of 572 inhabited and uninhabited, small and big picturesque islands with rocky cliffs and islets and abundant in green vegetation and marine resources. They are located in the South Eastern part of the Bay of Bengal under the administration of the Indian government.  Out of its total area of 8249 only 16.64 sq km is urban while the rest is rural. The tribal population inhabits only 38 islands and these areas are notified as tribal reserve areas. Revenue land and forest encroachment are the common problems which the islands face.

The strategy for development on the islands must consider a number of aspects like potential for fishery product exports, abundant natural resources, horticulture products, coconuts, spices and medicinal plants. Focus of the government is on input-low volume-high value agricultural growth on the islands.  Production of orchids, medicinal plants, areca nut and coconut should be at commercial level, production of perishables, oilseeds and vegetables at semi-commercial level and food-grain production at subsistence level. Accordingly special attention to modern techniques in production, top grade seeds, marketing and transport facilities, access to credit, integrated pest management, irrigation, fishery industry, horticulture and agro-based industry, aqua culture and training to farmers, needs to be given by the government.