The following points highlight the five important objectives of India’s five year plan’s. 

Objective # 1. Economic Growth:

Of all the objectives, economic growth has received the strongest prior­ity in all the plans. This is because the Indian economy is caught in the vicious circle of poverty due to low per capita income and the consequent low rate of saving and capital formation.

This ob­jective seems to be totally justified, particularly in the context of economic stagnation during the two centuries of British rule.

Economic planning in India aims at bring­ing about a rapid economic development in all sectors. The key sectors are agriculture, industry, power and transport. Through rapid economic de­velopment the country aims at increasing national and per capita incomes. Thus poverty will be re­moved and the standard of living improved.

Objective # 2. Economic Equity and Social Justice:

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Two aspects of social justice involve the reduction of poverty and the reduction in the inequality in the distribution of income and wealth.

Growing concentration of economic power in the hands of a few people with rising national income is not desirable. In an otherwise capitalist framework, inequality in the distribution of in­come and wealth is inevitable. In India’s socio-political set-up, vast inequalities exist. Indian plans aim at reducing such inequalities so that the benefits of economic development spread to the poor. This point was not explicitly mentioned by the planners until the Fifth Plan (1973-78). The objective of removal of poverty got its clear-cut enunciation only in that Plan for the first time.

Objective # 3. Full Employment:

The removal of un­employment is considered to be another impor­tant objective of India’s five year plans. But, un­fortunately, it never received the priority it de­served. In the Sixth plan (1978-83) the than Janata Government gave employment a place of pride for the first time.

However, the Seventh Plan (1985- 90) treated employment as a direct focal point of policy. As a result, the employment generation programme in India has received a rude shock and the number of people unemployed is mounting up plan after plan. The number of job-seekers in­creased from 34.24 lakhs as on December 1969 to 402 lakhs in December 1999.

Objective # 4. Economic Self-Reliance:

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Self-reliance or, for that matter, self-sufficiency, refers to the elimi­nation of external assistance. In other words, it means zero foreign aid. India is typically a de­pendent economy. She is used to importing a huge quantity of food-grains, fertiliser, raw materials and industrial machinery and equipment.

Obviously, India is always at a disadvantage so far as the terms of trade are concerned. This results in draining out precious foreign exchange reserves. Hence the necessity of economic self-reliance. But this ob­jective could not be realised before the launching of the Fourth Plan. The Fourth Plan (1967-73) aimed at the elimination of import of food-grains under P.L. 480 by 1971.

The basic aim of the Fifth Plan was the attainment of self-reliance. To achieve this goal the Fifth Plan aimed at an increasing pro­duction of food-grains, necessary consumption goods, raw materials and exports. While empha­sising the increase in exports, the Plan emphasised the need for establishing import-substitute indus­tries as an important factor of economic self-reliance.

No doubt India has made an important ad­vance in certain important directions. First due to the increase in output of food-grains, India has achieved near self-sufficiency in food. Secondly, with the establishment of basic as well as import- substitute industries, India dependence for machin­ery, plant and other capital equipment has dimin­ished considerably. Yet much remains to be achieved. India’s external debt obligations are on the rise. In other words, unlike other objectives, the goal of self-reliance still remains partly unful­filled.

Objective # 5. Modernisation:

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This new objective was categorically mentioned for the first time in the Sixth Plan. Modernisation means such a variety of structural and institutional changes in the eco­nomic activities that can change a feudal and co­lonial economy into a progressive and modern economy that produces various types of goods.

This requires the setting up of a wide variety of industries. It also refers to an advancement of tech­nology. No doubt certain technological advance­ments have taken place in agriculture, energy, etc. But there is a real danger of this objective in the present context. The country faces an alarming unemployment problem and, hence, poverty. But modernisation will definitely arrest the employ­ment generation activities. Hence, there is a con­flict between modernisation on the one hand and removal of unemployment and poverty on the other.

Short-term objectives:

Besides these long-term objectives, each five year plan in India has had some short-term objec­tives. For instance, the First Plan (1951-56) stressed agricultural development, control of inflation and rehabilitation of refugees. The Second Plan (1956- 61) aimed at rapid industrial growth—especially basic and heavy industries. The Third Plan (1961- 66) emphasised an expansion of basic industries but shifted to defence.