Indian Economy 1950-90 test - 2

Gross Domestic savings as a proportion of GDP has risen mainly due to the increased contribution of household sector from 6.2 in 1950-51 to 19.3 in 1990-91.

1956-57 plan is included in the second five year plan (which focusses on increase in  industrial production) due to which it is not included in the annual plans.

The Planning commission was set up in march 1951 with Jawaharlal Nehru as its Chairman. It was set up to bring economic stability.

The first Indian Prime Minister, Jawaharlal Nehru presented the First Five-Year Plan to the Parliament of India and needed urgent attention. The First Five-year Plan was launched in 1951 which mainly focused in development of the primary sector.

Eleventh five year plan focussed on improving the quality of life through better health and sducational facilities and improved levels of consumption. It also focussed on reduction in inequality.

The first five year plan focussed to increase in agricultural production however, the second five year plan focussed on development of heavy industries.

Twelfth five year plan started in 2012 with an objective to reduce poverty, to improve equality among states and to eliminate gender gaps.

The primary motive of economic planning is to bring economic growth and reduce inquality in the country. Other than this, it also had other objectives like increase employment opportunities and attain self sufficiency.

GDP also known as Gross Domestic Product refers to the market value of final goods and services produced within the domestic territory of a country during the period of an accounting year, inclusive of depreciation.

This is because the rate of increase in national income (GDP) must be more than the rate of growth of population so that per capita income also increases. With the population rate slowing down to to about 1.6 percent per annum, a growth rate of of GDP of around 9 percent per annum will be sufficient to quadruple the per capita income by 2020.