lannin in ndia             5.19
          An introductory description of these plans is           Third Plan
     given as follows:
                                                                  The Plan period was 1961–65. The Plan specifically
                                                                  incorporated the development of agriculture67 as
     A. the five-yeAr PlAns
                                                                  one of the objectives of planning in India besides,
     This is the most important among the central plans           for the first times, considering the aim of balanced,
     and is being continuously implemented one after              regional development.
     the other since planning commenced in India.                      Enough misfortunes awaited this plan—two
     As planning has been a purely political excercise            wars, one with China in 1961–62 and the other
     in India, the five-year plans of the country have            with Pakistan in 1965–66 along the Gujarat border
     seen many unstable and critical moments till date.           and a severe drought-led famine in 1965–66 had
     Several new developments related to planning                 to be faced. Due to heavy drain and diversion of
     also took place during the years. Given below is             funds, this plan utterly failed to meet its targets.
     a concise summary of the plans as we see their
     different periods of implementation:                         Three Annual Plans
     First Plan                                                   The period of the three consecutive Annual Plans
                                                                  was 1966–69. Though the Fourth Plan was ready
     The period for this plan was 1951–56. As the                 for implementation in 1966, the weak financial
     economy was facing the problem of large-scale                situation as well as the low morale after the defeat
     foodgrains import (1951) and the pressure of                 by China, the government decided to go for
     price rise, the plan accorded the highest priority           an Annual Plan for 1966–67. Due to the same
     to agriculture including irrigation and power                reasons the government went for another two
     projects. About 44.6 per cent of the plan outlay             such plans in the forthcoming years. The broader
     went in favour of the public sector undertakings             objectives of these Annual Plans were inside the
     (PSUs).                                                      design of the Fourth Plan which would have been
          The Plan was launched with all the lofty                implemented for the period 1966–71 had the
     ideas of socio-economic development, which had               financial conditions not worsened by then.
     frustrating outcomes in the following years.                      Some economists as well as the opposition in
                                                                  the Parliament called this period as a discontinuity
     Second Plan
                                                                  in the planning process, as the Plans were supposed
     The plan period was 1956–61. The strategy of                 to be for a period of five years. They named it a
     growth laid emphasis on rapid industrialisation              period of “Plan Holiday”, i.e., the planning was
     with a focus on heavy industries and capital                 on a holiday.68
     goods.66 The plan was developed by Professor
                                                                    67.  C. Rangarajan, Indian Economy: Essays on Money
     Mahalanobis. Due to the assumption of a closed                      and Finance (New Delhi: UPSBD, 1998), p. 272.
     economy, shortages of food and capital were felt               68.   t should e noted here that as per the official version
     during this Plan.                                                   of the Government of India, the planning has been
                                                                         a continuous process in the country and there is no
       66.  Sukhomoy Chakravarti, Development Planning: The              term li e lan Holiday in ts official documents. he
            Indian Experience (New Hork: Oxford University Press,        term was given by the critics and popularised by the
            1989), pp. 9–11.                                             contemporary media.