Introduction to Indian Five Year Plans and NITI Aayog for RRB Exams
General Awareness is one of the most scoring sections in the RRB NTPC, Group D, and Technician exams. Within this section, the Indian Economy, specifically the Economic Planning of India, holds significant weightage. Economic planning in India traces back to the post-independence era, primarily executed through the Five Year Plans (FYPs). These plans were the blueprint for the country’s growth, focusing on agriculture, industry, poverty alleviation, and modernization.
In 2015, the landscape of Indian planning underwent a monumental shift when the Planning Commission was replaced by NITI Aayog (National Institution for Transforming India). For a railway aspirant, understanding the objectives, models, and outcomes of each Five Year Plan, as well as the structure and functions of NITI Aayog, is essential to cracking the General Awareness paper.
Topic Weightage and Importance
In the RRB NTPC and Group D exams, the General Awareness section consists of 40 to 50 questions. Historical data suggests that 2 to 3 questions are consistently asked from the domain of Indian Economic Planning. These questions usually focus on:
- The duration and main objectives of specific Five Year Plans.
- Famous economic models like the Harrod-Domar and Mahalanobis models.
- The composition and current leadership of NITI Aayog.
- Major schemes launched during specific plan periods (e.g., Green Revolution, Garibi Hatao).
Since this topic is factual and concept-based, scoring here is quick and efficient, saving time for the Mathematics and Reasoning sections.
Key Concepts and Formulas
1. The Planning Commission (1950 - 2014)
The Planning Commission was established on March 15, 1950, by an executive resolution. It was a non-constitutional and non-statutory body. Its main function was to formulate Five Year Plans for the most effective and balanced utilization of the country's resources.
2. Summary of Five Year Plans (1951 - 2017)
| Plan | Period | Model/Focus | Key Features |
|---|---|---|---|
| 1st Plan | 1951-56 | Harrod-Domar Model | Focus on Agriculture, Irrigation, and Power. |
| 2nd Plan | 1956-61 | P.C. Mahalanobis Model | Rapid Industrialization; focus on Heavy Industries (Steel plants). |
| 3rd Plan | 1961-66 | Gadgil Yojana | Self-reliance in food. Failed due to Indo-China War (1962) & Indo-Pak War (1965). |
| Plan Holiday | 1966-69 | Annual Plans | Devaluation of Rupee; introduction of High Yielding Variety (HYV) seeds. |
| 4th Plan | 1969-74 | Gadgil Formula | Growth with Stability; Nationalization of 14 Banks (1969); Green Revolution. |
| 5th Plan | 1974-78 | D.P. Dhar Model | 'Garibi Hatao' (Poverty Alleviation); ended a year early by the Janta Govt. |
| Rolling Plan | 1978-80 | Gunnar Myrdal Concept | Introduced by Morarji Desai's Government. |
| 6th Plan | 1980-85 | Investment Model | Focus on removal of poverty and technological self-reliance. |
| 7th Plan | 1985-90 | Pranab Mukherjee Model | Focus on 'Food, Work, and Productivity'; Jawahar Rozgar Yojana (1989). |
| 8th Plan | 1992-97 | John W. Miller Model | Human Resource Development; LPG Reforms (Liberalization, Privatization, Globalization). |
| 9th Plan | 1997-2002 | Equity & Justice | Growth with Social Justice and Equality. |
| 10th Plan | 2002-07 | Human Dev. Focus | Objective to double Per Capita Income in 10 years. |
| 11th Plan | 2007-12 | Inclusive Growth | Faster and more inclusive growth. Prepared by C. Rangarajan. |
| 12th Plan | 2012-17 | Sustainable Growth | Faster, More Inclusive and Sustainable Growth (Last Five Year Plan). |
3. Transition to NITI Aayog
On January 1, 2015, the Government of India replaced the Planning Commission with the NITI Aayog. Unlike the Planning Commission, which followed a 'Top-Down' approach, NITI Aayog follows a 'Bottom-Up' approach, emphasizing Cooperative Federalism.
- Chairperson: Prime Minister of India.
- Vice-Chairperson: Appointed by the PM.
- CEO: Appointed by the PM for a fixed tenure.
- Governing Council: Comprises CMs of all States and Lt. Governors of UTs.
Solved Examples (Step-by-Step)
Example 1: In which Five Year Plan was the slogan 'Garibi Hatao' (Eradicate Poverty) introduced?
Solution: The 'Garibi Hatao' slogan was part of the political campaign of Indira Gandhi, but it was formally incorporated as a key objective in the Fifth Five Year Plan (1974-78). Note that the Fourth Plan focused on growth with stability, while the Fifth targeted poverty and self-reliance directly.
Example 2: Which model was the basis of the Second Five Year Plan in India?
Solution: The Second Five Year Plan (1956-61) was based on the P.C. Mahalanobis Model. This model emphasized heavy industrialization and the development of the public sector to achieve economic self-sufficiency.
Example 3: What is the main structural difference between the Planning Commission and NITI Aayog?
Solution: The primary difference is the approach to planning. The Planning Commission used a 'Top-Down' approach (Central government decided for states). NITI Aayog uses a 'Bottom-Up' approach through 'Cooperative Federalism,' where states are equal partners in the planning process.
Common Mistakes to Avoid
- Mixing up the Models: Aspirants often confuse the 1st Plan (Harrod-Domar) with the 2nd Plan (Mahalanobis). Remember: 1st = Agriculture/Growth; 2nd = Heavy Industry.
- Dates of Plan Holidays: Don't forget that there were three gaps in the 5-year cycle: 1966-69 (Plan Holiday), 1978-80 (Rolling Plan), and 1990-92 (Economic Instability).
- NITI Aayog Status: Remember that NITI Aayog is neither a constitutional body nor a statutory body; it is an executive body.
- Chairperson Identification: The Chairperson is always the Prime Minister. Do not confuse the Vice-Chairperson with the Chairperson in MCQ options.
Practice Questions with Solutions
Q1. Who was the first Deputy Chairman of the Planning Commission of India?
A) Jawaharlal Nehru
B) Gulzarilal Nanda
C) C.D. Deshmukh
D) Sardar Patel
Q2. The 'Rolling Plan' was implemented between which years?
A) 1966-1969
B) 1978-1980
C) 1990-1992
D) 1997-2002
Q3. Which body finally approves the Five Year Plans in India (historically)?
A) Parliament
B) Planning Commission
C) National Development Council (NDC)
D) NITI Aayog
Q4. The 'LPG' (Liberalization, Privatization, and Globalization) model of development was introduced during which plan?
A) 7th Plan
B) 8th Plan
C) 9th Plan
D) 10th Plan
Q5. Who is the current CEO of NITI Aayog? (Note: Keep updated with current affairs)
A) Suman Bery
B) B.V.R. Subrahmanyam
C) Amitabh Kant
D) Parameswaran Iyer
Solutions:
1. B) Gulzarilal Nanda. (The PM is the Chairman; Nanda was the first Deputy Chairman).
2. B) 1978-1980. (Introduced by the Janta Party government).
3. C) National Development Council (NDC). (Established in 1952 to approve plans).
4. B) 8th Plan (1992-1997). (Introduced by the Narasimha Rao government).
5. B) B.V.R. Subrahmanyam. (As of current 2024 records; always verify before the exam).
Frequently Asked Questions (FAQs)
Q1. Is the Five Year Plan system still active in India?
No, the Five Year Plan system ended with the 12th Five Year Plan (2012-2017). Planning is now managed through NITI Aayog's three-year action agenda, seven-year strategy, and fifteen-year vision document.
Q2. What is the full form of NITI in NITI Aayog?
NITI stands for National Institution for Transforming India.
Q3. Why was the 3rd Five Year Plan considered a failure?
The 3rd Plan failed to meet its targets due to three major reasons: The Sino-Indian War (1962), the Indo-Pakistani War (1965), and a severe drought in 1965-66.
Q4. Who is the Vice-Chairperson of NITI Aayog appointed by?
The Vice-Chairperson is appointed directly by the Prime Minister of India and holds the rank of a Cabinet Minister.
Conclusion and Final Tips
Mastering the topic of Indian Five Year Plans and NITI Aayog is a gateway to securing easy marks in your RRB NTPC or Group D exam. The transition from a centralized planning era to a cooperative federalism era is a favorite theme for examiners.
Final Tips for Success:
- Memorize the table of Five Year Plans provided above—specifically the models and durations.
- Stay updated on the current office-bearers of NITI Aayog (Vice-Chairman and CEO).
- Read about the various indices released by NITI Aayog like the 'Sustainable Development Goals (SDG) India Index' as they are often asked in current affairs.
