The First Five-Year Plan of India was launched in 1951, marking the beginning of planned economic development in the country. After gaining independence in 1947, India faced several critical challenges such as widespread poverty, food shortages, underdeveloped industries, unemployment, and low levels of education and healthcare. To overcome these issues and ensure balanced national growth, the Government of India adopted a systematic approach to economic planning.
The First Plan was prepared and implemented by the Planning Commission, under the leadership of Prime Minister Jawaharlal Nehru. It was based on the Harrod-Domar model of economic growth, which emphasized the importance of investment and capital formation. The main focus of the plan was on agriculture, irrigation, and rural development, considering the urgent need to achieve self-sufficiency in food production and improve living standards in rural areas.
This plan laid the foundation for India’s future development strategies, establishing a framework for centralized planning and long-term national goals.
Objectives of the First Five-Year Plan (1951–1956)
The First Five-Year Plan was designed with the goal of laying a strong foundation for India’s economic and social development. The Planning Commission identified key areas that required urgent attention to stabilize the economy and improve the living standards of the population. The objectives were realistic, focusing on the most pressing national needs after independence.
Here is a main objectives of the First Five-Year Plan:
1. Agricultural Development and Self-Sufficiency in Food
The primary objective was to increase agricultural production, as the majority of the population depended on farming for livelihood. India was facing food shortages due to low productivity and lack of irrigation facilities.
The plan aimed to ensure self-sufficiency in food grains and reduce dependency on imports. Investments were made in irrigation projects, fertilizers, improved seeds, and land reforms.
2. Price Stability
The economy was experiencing inflation and rising prices due to shortages of goods and services.
The plan aimed to maintain price stability by increasing the supply of essential commodities, particularly food and basic goods.
Balanced production and better distribution mechanisms were encouraged to control inflation.
3. Poverty Reduction and Employment Generation
A large segment of the population lived below the poverty line with limited employment opportunities.
The plan focused on creating jobs, especially in agriculture and public works, to raise incomes and reduce poverty.
Rural employment schemes and infrastructure projects were used as tools to provide work to the unemployed.
4. Rehabilitation of Displaced Persons
After the partition of India in 1947, a massive number of refugees migrated from Pakistan.
The plan aimed to provide housing, employment, and resettlement support for displaced individuals and families.
Special programs were launched to integrate them into the economy and society.
5. Development of Irrigation and Power Resources
Water and electricity were essential for boosting agricultural and industrial productivity.
The plan emphasized the construction of large-scale multipurpose projects like Bhakra Nangal Dam, Hirakud Dam, and Mettur Dam.
These projects helped in expanding irrigation, generating hydroelectric power, and controlling floods.
6. Promotion of Small-Scale and Cottage Industries
To support employment and local economies, the plan encouraged the development of village and small industries.
Traditional crafts and rural enterprises were promoted through training, credit, and marketing support.
This objective aligned with Gandhian principles of rural self-reliance.
7. Improvement in Transport and Communication
Efficient transport and communication systems were vital for economic integration and administrative efficiency.
The plan allocated funds to expand railways, roads, ports, and communication networks.
Better connectivity facilitated trade, movement of goods, and rural development.
8. Expansion of Social Services (Education, Health, and Welfare)
Human development was seen as essential for long-term growth.
The plan included efforts to expand primary education, improve public health services, and increase access to safe drinking water and sanitation.
Investment in social welfare aimed to reduce inequality and support vulnerable groups.
9. Strengthening the Public Sector
The plan sought to establish a strong public sector that would lead economic development.
Public investment was made in key sectors like energy, transport, irrigation, and manufacturing.
This helped lay the foundation for state-led industrialization in future plans.
10. Balanced Regional Development
The plan aimed to reduce regional disparities by promoting development in backward and underdeveloped areas.
Resources were allocated to ensure that benefits of development reached all parts of the country, not just urban or industrial centers.
Achievements of the First Five-Year Plan (1951–1956)
The First Five-Year Plan was a significant success in laying the groundwork for India’s economic development. Despite limited resources and numerous post-independence challenges, the plan achieved many of its key objectives, especially in the agricultural and infrastructure sectors. Below are the major achievements of the plan:
1. Agricultural Growth and Food Self-Sufficiency
One of the most important achievements was the increase in food grain production.
The plan aimed to achieve 62 million tonnes of food grains, but actual production rose to 69 million tonnes by 1955–56.
This was made possible through:
- Expansion of irrigation facilities.
- Use of better-quality seeds and fertilizers.
- Land reforms in some states.
2. Successful Implementation of Major Irrigation Projects
Several large-scale multipurpose river valley projects were initiated and partly completed during this period, including:
- Bhakra Nangal Dam (Punjab)
- Hirakud Dam (Odisha)
- Mettur Dam (Tamil Nadu)
These projects increased irrigation coverage, generated hydroelectric power, and helped in flood control.
3. Improvement in National Income
The national income was projected to grow at 2.1% per annum, but the actual growth rate achieved was 3.6%, exceeding expectations.
This indicated improved productivity in key sectors, especially agriculture.
4. Price Stability
Although inflation was a concern initially, the plan succeeded in maintaining relative price stability by increasing the supply of essential goods and food items.
Effective distribution systems and agricultural surplus helped in avoiding sharp price rises.
5. Employment Generation
The plan generated employment opportunities, particularly through:
- Public works projects.
- Rural development programs.
- Expansion of agricultural activities.
The Community Development Programme (1952) also contributed to rural employment and infrastructure development.
6. Development of Transport and Communication
Significant investment was made to strengthen railways, roads, and communication networks.
This improved connectivity between urban and rural areas, facilitated trade, and supported administrative efficiency.
7. Promotion of Rural and Small-Scale Industries
The plan encouraged the growth of cottage industries and village-level enterprises to support rural employment and reduce migration to urban areas.
Training, credit facilities, and technical support were provided to small producers.
8. Strengthening the Public Sector
The First Plan laid the foundation for a strong public sector.
Several public enterprises and infrastructure projects were initiated, especially in power, irrigation, and transportation.
9. Social Development Initiatives
Moderate progress was made in education, health, and rural welfare.
Primary education facilities were expanded.
Basic health services were improved through the establishment of primary health centers (PHCs).
Special efforts were made to rehabilitate refugees and support backward communities.
10. Foundation for Future Plans
The First Plan was instrumental in building administrative experience in planning, implementation, and resource management.