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Massive voltages in thunderclouds can slow down subatomic particles. The Third Five-year Plan stressed agriculture and improvement in the production of wheat, but the brief Sino-Indian War of exposed weaknesses in the economy and shifted the focus towards the defence industry and the Indian Army. In —, India fought a War with Pakistan. There was also a severe drought in The war led to inflation and the priority was shifted to price stabilisation.

The construction of dams continued. Many cement and fertilizer plants were also built.

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Punjab began producing an abundance of wheat. Many primary schools were started in rural areas. In an effort to bring democracy to the grass-root level, Panchayat elections were started and the states were given more development responsibilities. State electricity boards and state secondary education boards were formed. States were made responsible for secondary and higher education.

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State road transportation corporations were formed and local road building became a state responsibility. The target growth rate was 5. Due to miserable failure of the Third Plan the government was forced to declare "plan holidays" from —67, —68, and — Three annual plans were drawn during this intervening period. During —67 there was again the problem of drought. Equal priority was given to agriculture, its allied activities, and industrial sector.

The government of India declared "Devaluation of Rupee" to increase the exports of the country. The main reasons for plan holidays were the war, lack of resources and increase in inflation. At this time Indira Gandhi was the Prime Minister. The Indira Gandhi government nationalised 14 major Indian banks and the Green Revolution in India advanced agriculture. In addition, the situation in East Pakistan now Bangladesh was becoming dire as the Indo-Pakistan War of and Bangladesh Liberation War took funds earmarked for industrial development.

India also performed the Smiling Buddha underground nuclear test Pokhran-1 in Rajasthan on May 18, , partially in response to the United States deployment of the Seventh Fleet in the Bay of Bengal. The fleet had been deployed to warn India against attacking West Pakistan and extending the war. The plan also focused on self-reliance in agricultural production and defence.


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In the newly elected Morarji Desai government rejected the plan. The Electricity Supply Act was amended in , which enabled the central government to enter into power generation and transmission. The Indian national highway system was introduced and many roads were widened to accommodate the increasing traffic. Tourism also expanded. The twenty-point programme was launched in It was followed from to The objective of the programme is to provide certain basic minimum needs and thereby improve the living standards of the people. It is prepared and launched by D.

This plan was again rejected by the Indian National Congress government in and a new Sixth Plan was made. The Rolling Plan consisted of three kinds of plans that were proposed.

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The First Plan was for the present year which comprised the annual budget and the Second was a plan for a fixed number of years, which may be 3, 4 or 5 years. Plan number two kept changing as per the requirements of the Indian economy. The Third Plan was a perspective plan for long terms i. Hence there was no fixation of dates for the commencement and termination of the plan in the rolling plans.

The main advantage of the rolling plans was that they were flexible and were able to overcome the rigidity of fixed Five-Year Plans by mending targets, the object of the exercise, projections and allocations as per the changing conditions in the country's economy. The main disadvantage of this plan was that if the targets were revised each year, it became difficult to achieve the targets laid down in the five-year period and it turned out to be a complex plan. Also, the frequent revisions resulted in the lack of stability in the economy. The Sixth Five-Year Plan marked the beginning of economic liberalisation.

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Price controls were eliminated and ration shops were closed. This led to an increase in food prices and an increase in the cost of living. This was the end of Nehruvian socialism. The National Bank for Agriculture and Rural Development was established for development of rural areas on 12 July by recommendation of the Shivaraman Committee. Family planning was also expanded in order to prevent overpopulation.

In contrast to China's strict and binding one-child policy , Indian policy did not rely on the threat of force [ citation needed ]. More prosperous areas of India adopted family planning more rapidly than less prosperous areas, which continued to have a high birth rate.

The plan laid stress on improving the productivity level of industries by upgrading of technology. The main objectives of the Seventh Five-Year Plan were to establish growth in areas of increasing economic productivity, production of food grains, and generating employment through "Social Justice". As an outcome of the Sixth Five-Year Plan, there had been steady growth in agriculture, controls on the rate of inflation, and favourable balance of payments which had provided a strong base for the Seventh Five-Year Plan to build on the need for further economic growth.

The Seventh Plan had strived towards socialism and energy production at large. The thrust areas of the Seventh Five-Year Plan were: social justice, removal of oppression of the weak, using modern technology, agricultural development, anti-poverty programmes, full supply of food, clothing, and shelter, increasing productivity of small- and large-scale farmers, and making India an independent economy.

Based on a year period of striving towards steady growth, the Seventh Plan was focused on achieving the prerequisites of self-sustaining growth by the year Under the Seventh Five-Year Plan, India strove to bring about a self-sustained economy in the country with valuable contributions from voluntary agencies and the general populace. The Eighth Plan could not take off in due to the fast changing political situation at the centre and the years —91 and —92 were treated as Annual Plans. The Eighth Plan was finally formulated for the period — Between and , there were only Annual Plans.

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Thus, under pressure, the country took the risk of reforming the socialist economy. Narasimha Rao was the ninth Prime Minister of the Republic of India and head of Congress Party , and led one of the most important administrations in India's modern history, overseeing a major economic transformation and several incidents affecting national security. At that time Dr. Manmohan Singh later Prime Minister of India launched India's free market reforms that brought the nearly bankrupt nation back from the edge.

It was the beginning of liberalization , privatisation and globalization LPG in India. Modernization of industries was a major highlight of the Eighth Plan. Under this plan, the gradual opening of the Indian economy was undertaken to correct the burgeoning deficit and foreign debt.

The major objectives included, controlling population growth, poverty reduction, employment generation, strengthening the infrastructure, institutional building, tourism management, human resource development, involvement of Panchayati rajs , Nagar Palikas , NGOs , decentralisation and people's participation. To achieve the target of an average of 5.


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The incremental capital ratio is 4. The saving for investment was to come from domestic sources and foreign sources, with the rate of domestic saving at The Ninth Plan tried primarily to use the latent and unexplored economic potential of the country to promote economic and social growth. It offered strong support to the social spheres of the country in an effort to achieve the complete elimination of poverty.

The satisfactory implementation of the Eighth Five-Year Plan also ensured the states' ability to proceed on the path of faster development. The Ninth Five-Year Plan also saw joint efforts from the public and the private sectors in ensuring economic development of the country. In addition, the Ninth Five-Year Plan saw contributions towards development from the general public as well as governmental agencies in both the rural and urban areas of the country. New implementation measures in the form of Special Action Plans SAPs were evolved during the Ninth Plan to fulfill targets within the stipulated time with adequate resources.

The SAPs covered the areas of social infrastructure, agriculture, information technology and Water policy.