Five Year Plans in India /Holiday Plans and Fourth Five Year Plans - Simplified with Mnemonic.

3’ Annual Plans / Holiday Plans (1966-1969)
I. Introduction
• Due to the failure of the third Five Year Plan, the
government of India announced ‘three annual plans’ called ‘Plan Holidays’/ Holiday Plan from 1966 to 1969.
The prime minsters during the ‘holiday plan’ were:
• Lal Bahadur Shastri, (1964-66)
• Gulzarilal Nanda (1966), and
• Indira Gandhi (1966-1977)
II. Focus.
• No new focus
• Prevailing crisis in agriculture and serious food shortage necessitated the emphasis / focus on ‘Agriculture’ during the Annual Plans.
III. Priorities
1. Equal priority
2. New agricultural strategy
3. Devaluation of rupees
4. Social and community services

• During the Annual Plans, ‘the economy absorbed’ the shocks generated during the third FY Plan.
Fourth Five Year plan
I. Introduction
• Govt. of India started 4th FYP under the leadership of Smt. Indira Gandhi, then Prime minister of India from 1969 to 1974.
II. Objectives
There were two main objectives of this plan was;
i. Growth with stability and
ii. Progressive achievement of economic self-reliance.
Other objective
• To reform and restructure the expenditure agenda,
• Correcting the earlier trend of increased concentration of wealth and economic power.
III. Model
• Fourth F Y P was based on ‘Ashok Rudra Menon Model’
for the attainment of economic self-reliance.
IV. Focus / Theme
• On ‘growth with stability’ and
progress towards ‘self reliance’ (economic self reliance).
• The main emphasis was on the growth rate of agriculture to enable other sectors to move forward.
V. Priorities of 4th FYP
1. Green Revolution was started
Green revolution refers to the great increase in production of food grains (especially wheat and rice), achieved by the use of artificial fertilizers, pesticides, and high-yield crop varieties.
2. Nationalization of banks
• During 4thFYP, 14 major Indian banks were nationalized.
3. Foreign exchange reserves.
4. Buffer stock
5. Drought Prone Area Programme
6. Social and Community services
a. Strengthening PHC.
b. Strengthening sub-divisional & district hospitals
c. Strengthening and expansion of Medical & Nursing education.
• After 1971, the situation in East Pakistan (now Bangladesh)
was becoming dire (very bad or serious,
terrible) as the wars took funds earmarked for industrial development.
• Indo-Pakistani War of 1971 and
• Bangladesh Liberation War.
Indo The Indo-Pakistani War of 1971 was a military confrontation (a military encounter involving opposing armies) between India and Pakistan that occurred during the Bangladesh Liberation War in East Pakistan
-Pakistani War - 1971
Bangladesh Liberation War - 1971
The Indo-Pakistani conflict was sparked by the Bangladesh Liberation War, a conflict between the traditionally dominant West Pakistanis and the majority East Pakistanis.
3. Foreign Reserves
Need for foreign reserves was felt.
• Forex reserves are foreign currency assets, mainly composed of US dollar held by the central banks of countries.

4. Buffer stock
• The concept of a buffer stock was first introduced and
• a buffer stock of 5 million tones of food grains was envisaged.
5. Drought Prone Area Program (DPAP)
• The DPAP was launched to minimize the adverse effects of drought on production of crops and livestock and productivity of land, water and human resources ultimately leading to drought proofing of the affected
areas.
6. Social and Community service
a. Strengthening PHC in Rural area
b. Strengthening Sub-divisional & District hospitals
c. Strengthening and expansion of Medical & Nursing
education
• Govt. of India appointed Kartar Sing committee in 1972-73)
VI. Annual Growth Target of GDP set per Year.
• The target annual growth in GDP set was 5.7% per year.
• The first two years of the plan saw record production.
• Green Revolution in India advanced agriculture.
• Food grains production increased to bring about self sufficiency in production.
• The last three years did not measure up due to poor monsoon.
• But, the influx of Bangladeshi refugees before and after 1971, Indo-Pak war was an important issue.
• Due to recession, famine and drought, India did not pay much heed to long term goals.
VII. Annual Growth of GDP achieved per Year.
• The achieved annual growth was 3.3% per Year.
• Thus, 4th FYP plan failed and could achieve a growth rate of 3.3% against the annual growth target of 5.7%.

Thank You.