Discuss the trends in the ‘sectoral growth/changes’ in India over the period 1951-2019.

India set up the Planning Commission in 1950 to oversee the entire range of planning, including resource allocation, implementation and appraisal of five-year plans. The five-year plans were centralized economic and social growth programmes modelled after those prevalent in the USSR. India’s first five-year plan, launched in 1951, focused on agriculture and irrigation to boost farm output as India was losing precious foreign reserves on foodgrain imports. It was based on the Harrod-Domar model that sought to boost economic growth through higher savings and investments. The plan was a success, with the economy growing at an annualized 3.6%, beating the target of 2.1%.

The second five-year plan (1956-61) laid the foundation for economic modernization to better serve India’s long-term growth imperatives. Launched in 1956, it was based on the Mahalanobis model that advocated rapid industrialization with a focus on heavy industries and capital goods. Prasanta Chandra Mahalanobis was perhaps the single most important individual in directing Indian development planning. He was the chief adviser to the commission from 1955, founded the Indian Statistical Institute, and is considered the father of modern statistics in India. The Mahalanobis plan was, in a way, an invocation of the spirit of swadeshi or self-reliance.

the trends in the ‘sectoral growth/changes’ in India over the period 1951-2019:--

1. Quantitative Changes:

i. Rising trend of National Income and per Capita Income:

Economic growth of any country is measured by the increase in national and per capita output.

During the plan period, national income of the country has certainly gone up. In 1950- 51, net national product at factor cost or national income (at 1999-2000 prices) stood at Rs. 2,06,493 crore. It rose to Rs. 27,60,325 crore in 2007-08 (at 1999- 2000 prices).

This means that between 1950-51 and 2007-08 national income grew at the compound rate of 4.7 percent per annum.

Compared to the pre-independence figure, this is really remarkable. However, the performance of the Indian economy in this direction in the 1980s, 1990s was certainly praiseworthy since it recorded a growth rate of more than 6 p.c. p.a. GDP growth rate in the 2000s is unprecedented.

It rose from 5.8 p.c. in 2001-02 to 9.2 p.c. in 2006-07. If the present trend continues, the country will be able to achieve a double digit growth rate within one or two years.

However, the better measure of economic development is the per capita income. Per capita NNP rose to Rs 24,256 in 2007- 08 (at 1999-2000 prices) as against Rs 6,122 of 1950-51 at 1999-2000 prices. This means that during this period, compound annual growth rate of net per capita income rose by 2.5 p.c. p.a.

Historically, it exhibits a better growth rate. Yet, it is inadequate compared to the needs of the country. The only encouraging aspect is that it shows a rising trend.

ii. Increase in Agricultural and Industrial Output:

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