Question

The Gadgil Formula for determining the allocation of central assistance for state plans in India was introduced in

1. Fourth five year plan
2. Fifth five year plan
3. Eighth five year plan
4. Tenth five year plan

Answer 1

Correct Answer - Option 1 : Fourth five year plan

The correct answer is Fourth five year plan.

• Fourth five-year plan (1969-74):
  • The Gadgil formula is named after Dhananjay Ramchandra Gadgil, a social scientist and the first critic of Indian planning. It was evolved in 1969 for determining the allocation of central assistance for state plans in India.
  • There was a focus on the ideas of growth with stability and progress towards self-reliance. 
  • The fourth five-year plan was based on the Ashok Rudra Menon model.
  • This plan led to the beginning of the politicisation of planning in India.
  • During the fourth five-year plan, The Indira Gandhi government nationalised 14 major Indian banks, and the Green Revolution in India advanced agriculture.
  • India also performed the Smiling Buddha underground nuclear test (Pokhran-1) in Rajasthan on 18 May 1974.
  • The target growth rate was 5.6%, but the actual growth rate was 3.3%.

• Fifth Five Year Plan -
  • The scheme started on 1 April 1974 and ended in 1979.
  • The scheme was based on the input-output model.
  • The main objective of this scheme was the eradication of poverty and self-sufficiency.
  • Apart from this, the goals set in this plan -
  1. Minimum needs programs like primary education, drinking water, rural health services, nutrition, rural housing, rural roads, rural electrification, etc.
  2. Import Replacement and Export Promotion.
  3. Fair Wage Price Policy.
  4. Reducing socioeconomic and regional disharmony.
  • During this plan, a 20 point program was started in the year 1975.
  • A target of 4.4 growth rate was set for the scheme, while the actual achievement was 4.8%.

• Eighth five-year plan-
  • It took place from 1992 to 1997, under the leadership of P.V. Narasimha Rao.
  • The New Economic Policy of India was launched during the plan.
  • The objectives were-Rapid economic growth, high growth of agriculture and allied sector, and the manufacturing sector, growth in exports and imports, improvement in trade and current account deficit.
  • An average annual growth rate of 6.78% against the target of 5.6% was achieved.

• Tenth Five Year Plan-
  • ​Its duration was from 2002 to 2007, under the leadership of Atal Bihari Vajpayee and Manmohan Singh. 
  • This plan aimed to double the Per Capita Income of India in the next 10 years.
  • Its growth target was 8.0% but it achieved only 7.6%.