1. Planning ........................................................................................................................................... 11 1.1 Planning in India ................................................................................................................................... 11 1.2 Important Dates .................................................................................................................................... 11 1.3 Visvesvarayya Plan ............................................................................................................................... 11 1.4 FICCI Proposal ....................................................................................................................................... 12 1.5 Congress Plan ........................................................................................................................................ 12 1.6 Important Developments .................................................................................................................... 12 1.7 Bombay Plan ......................................................................................................................................... 12 1.8 Gandhian Plan ....................................................................................................................................... 12 1.9 People’s Plan ......................................................................................................................................... 13 1.10 Sarvodaya Plan ..................................................................................................................................... 13 1.11 Planning Commission ........................................................................................................................... 13 Functions ...................................................................................................................................................................................................... 14 1.12 Five Year Plans ...................................................................................................................................... 15 First Plan (1951-56) .................................................................................................................................................................................. 15 Second Plan (1956-61) ............................................................................................................................................................................ 16 Third Plan (1961-66) ................................................................................................................................................................................ 18 Three Annual Plans or Holiday Plan (1966-69) ............................................................................................................................. 19 Fourth Plan (1969-74) ............................................................................................................................................................................. 20 Fifth Plan (1974-79) .................................................................................................................................................................................. 21 Emergency years (1975-1977) ............................................................................................................................................................. 23 Rolling Plan (1978-80) ............................................................................................................................................................................. 23 Sixth Plan (1980-85) ................................................................................................................................................................................. 23 Seventh Plan (1985-90) .......................................................................................................................................................................... 25 Two Annual Plans (1990-92) ................................................................................................................................................................. 26 Eighth Plan (1992-97) .............................................................................................................................................................................. 27 Ninth Plan (1997-2002) .......................................................................................................................................................................... 28 Tenth Plan (2002-07) ............................................................................................................................................................................... 31 Eleventh Plan (2007-12) ......................................................................................................................................................................... 32 Twelfth Five Year Plan (2012-2017) ................................................................................................................................................... 35 1 Review of Five-Year Plans ...................................................................................................................................................................... 38 1.13 Major challenges in the economy: ...................................................................................................... 42 1.14 Achievements of Planning: .................................................................................................................. 42 Failures of Planning: ................................................................................................................................................................................. 43 NextGen IAS NextGen IAS 2. FROM PLANNING TO NITI AAYOG ............................................................................................... 43 2.1 Functions and Mandates of NITI Ayog: .............................................................................................. 44 2.2 Structure of NITI: .................................................................................................................................. 44 2.3 VEHICLE OF GOOD GOVERNANCE ...................................................................................................... 46 2.4 Niti Aayog’s Vision for New India: ..................................................................................................... 46 Challenges ................................................................................................................................................................................................... 47 How to address the current challenges? ......................................................................................................................................... 47 Certain issues are ...................................................................................................................................................................................... 48 Guiding Principles ..................................................................................................................................................................................... 49 3. Money and Banking ........................................................................................................................ 49 3.1 Financial System: .................................................................................................................................. 49 3.2 Classification of financial system: ....................................................................................................... 50 Indian Financial System: ......................................................................................................................................................................... 50 Money Market: ........................................................................................................................................................................................... 50 3.3 Concept of Money Supply: .................................................................................................................. 51 3.4 Currency in Circulation: ....................................................................................................................... 52 3.5 Velocity of Circulation of Money: ....................................................................................................... 54 3.6 Quantity of Money: .............................................................................................................................. 54 3.7 Money Multiplier: ................................................................................................................................. 55 3.8 Stock of Money: .................................................................................................................................... 55 Reserve Money: ......................................................................................................................................................................................... 56 Narrow Money: .........................................................................................................................................................................................