Class 12 Economics Short Notes 2026-27

2.2 THE GOALS OF FIVE YEAR PLANS

Planning in India after Independence was carried out through a series of five year plans, each of which laid down clear targets. Broadly, the plans aimed at four goals: growth, modernisation, self-reliance and equity. Resources were limited, so it was not possible for every plan to give equal weight to all four goals, and each plan had to decide which of them would receive priority. At the same time, care had to be taken that the policies adopted for one goal did not work against the others.

Higher output of goods and services requires producers to adopt improved methods. When a farmer uses a new high-yielding variety of seed in place of the traditional one, or a factory installs new machinery, we speak of modernisation. The term also covers changes in social attitudes, for example, accepting that women should enjoy the same rights and opportunities as men.

A country may achieve growth with its own resources or with resources obtained from abroad. The early plans laid great stress on self-reliance, which meant producing within the country those goods that could be made here rather than importing them, especially food. It was feared that heavy dependence on other nations would weaken the economic independence of the new nation.