The Five-Year Plans were a formal planning model for an efficient and balanced use of resources adopted by the Indian government after Independence.
- In 1951 April 1, the First Five-year Plan was launched, which focused primarily on the development of the primary sector.
- With few alterations, the First Five-Year Plan was based on the Harrod-Domar model.
- The total planned budget of Rs.2069 crore (2378 crore later) was allocated to seven broad areas: irrigation and energy (27.2%), agriculture and community development (17.4%), transport and communications (24%), industry (8.4%), social services (16.6%), rehabilitation of landless farmers (4.1%), and for other sectors and services (2.5%).
- The active role of the state in all economic sectors was the most important feature of this phase.
- The target growth rate was 2.1% annual gross domestic product (GDP) growth; the achieved growth rate was 3.6% the net domestic product went up by 15%.
- The monsoon was good and there were relatively high crop yields, boosting exchange reserves and the per capita income, which increased by 8%.
- Due to rapid population growth, national revenue has increased more than per capita income.
- During this period, many irrigation projects were initiated, including the dams of Bhakra, Hirakud, Mettur Dam and Damodar Valley.
- Together with the Indian government, the World Health Organization (WHO) addressed child health and reduced infant mortality, indirectly contributing to population growth.
- In 1956, five Indian Institutes of Technology (IITs) were started as major technical institutions.
- Introduction of first five year plan prepared by Dr. K.N.Raj.
- National Development Council( 6 August 1952 )implemented during first Plan.
- The University Grants Commission (UGC ) is a statutory body set up by the Government of India in accordance to the UGC Act 1956 in this period.