Third Five-Year Plan

Third Five-Year Plan was a pivotal economic plan implemented by the Government of India under the leadership of Jawaharlal Nehru, with the objective of achieving a mixed economy and rapid industrialization, as envisioned by Mahalanobis Model. The plan was formulated by the Planning Commission of India, which was established in 1950 by a Cabinet Resolution, and was influenced by the ideas of Joseph Stalin and the Soviet Union's Five-Year Plans. The plan's success was closely tied to the performance of key sectors such as Bhilai Steel Plant, Rourkela Steel Plant, and Hindustan Machine Tools, which were established with the help of Soviet Union and other countries like United Kingdom and United States.

Introduction

The Third Five-Year Plan was launched in 1961 and lasted until 1966, with a total outlay of ₹ 9,570 crores, which was a significant increase from the Second Five-Year Plan. The plan aimed to achieve a growth rate of 5% per annum, with a focus on agricultural development, industrial growth, and social welfare, as outlined in the Indian Constitution and the Five Principles of Peaceful Coexistence. The plan was influenced by the ideas of P.C. Mahalanobis, who was a key member of the Planning Commission of India, and was also influenced by the United Nations' Development Decade and the Non-Aligned Movement. The plan's implementation was supported by international organizations such as the World Bank, International Monetary Fund, and United Nations Development Programme.

Background

The Third Five-Year Plan was formulated in the context of Cold War and the Sino-Indian War, which had a significant impact on India's foreign policy and its relations with countries like China, Pakistan, and Soviet Union. The plan was also influenced by the Green Revolution, which was led by Norman Borlaug and M.S. Swaminathan, and the White Revolution, which was led by Verghese Kurien and the National Dairy Development Board. The plan's success was also dependent on the performance of key institutions such as the Reserve Bank of India, State Bank of India, and the Indian Railways, which were established during the British Raj and were reorganized after Indian independence.

Objectives and Strategies

The Third Five-Year Plan had several objectives, including the achievement of self-sufficiency in food production, the development of heavy industry, and the expansion of social services such as healthcare and education, as outlined in the Directive Principles of State Policy. The plan also aimed to promote export-led growth and to increase foreign exchange reserves, with the help of institutions such as the Export-Import Bank of India and the Indian Institute of Foreign Trade. The plan's strategies included the establishment of new public sector undertakings such as Steel Authority of India Limited and National Thermal Power Corporation, and the expansion of existing ones such as Indian Oil Corporation and Hindustan Petroleum.

Implementation and Outcomes

The implementation of the Third Five-Year Plan was marked by several challenges, including the Sino-Indian War and the Indo-Pakistani War of 1965, which had a significant impact on India's economy and its relations with countries like China, Pakistan, and United States. Despite these challenges, the plan achieved several successes, including the establishment of new industrial units such as Bokaro Steel Plant and Durgapur Steel Plant, and the expansion of existing ones such as Tata Steel and Jindal Steel and Power. The plan also led to significant improvements in agricultural production, with the help of institutions such as the Indian Council of Agricultural Research and the National Seeds Corporation.

Impact and Legacy

The Third Five-Year Plan had a significant impact on India's economy and its socio-economic development, as it laid the foundation for the country's rapid industrialization and economic growth in the subsequent decades. The plan's legacy can be seen in the establishment of key institutions such as the Indian Institute of Technology and the Indian Institute of Management, which were established during this period with the help of international organizations such as the Ford Foundation and the Rockefeller Foundation. The plan's impact can also be seen in the development of key sectors such as information technology and biotechnology, which have become major drivers of India's economy in recent years, with the help of institutions such as the National Association of Software and Services Companies and the Department of Biotechnology. Category:Economic plans