Introduction on 5 yr plan:
The economy of India is based in part on planning through its five-year plans, which are developed, executed and monitored by the Planning Commission. The tenth plan completed its term in March 2007 and the eleventh plan is currently underway
First five year plan (1951- 1956)
The first Indian Prime Minister, Jawaharlal Nehru presented the first five-year plan to the Parliament of India on December 8, 1951.This plan was based on the Harrod-Domar model. The plan addressed, mainly, the agrarian sector, including investments in dams and irrigation. The agricultural sector was hit hardest by the partition of India and needed urgent attention.[3] The total planned budget of 2069 crore was allocated to seven broad areas: irrigation and energy (27.2 percent), agriculture and community development (17.4 percent), transport and communications (24 percent), industry (8.4 percent), social services (16.64 percent), land rehabilitation (4.1 percent), and for other sectors and services (2.5 percent).[4] The most important feature of this phase was active role of state in all economic sectors. Such a role was justified at that time because immediately after independence, India was facing basic problems—deficiency of capital and low capacity to save.
The target growth rate was 2.1% annual gross domestic product (GDP) growth; the achieved growth rate was 3.6%
Second five year plan (1956-1961)
The second five-year plan focused on industry, especially heavy industry. Domestic production of industrial products was encouraged in the Second plan, particularly in the development of the public sector.
The total amount allocated under the second five year plan in India was Rs. 4,600 crore. This amount was allocated among various sectors: * Power and irrigation * Social services * Communications and transport * Miscellaneous
Target Growth:4.5% Growth achieved:4.0%
Third five year plan (1961- 1966) The third plan stressed on agriculture and improvement in the production of wheat, but the brief Sino-Indian War of 1962 exposed weaknesses in the economy and shifted the focus towards the [Defence industry]. In 1965–1966, India fought a [Indo-Pak] War with Pakistan. Due to this there was a severe drought in 1965. 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. Punjab began producing an abundance of wheat. The target growth rate of GDP(gross domestic product)was 5.6 percent. The achieved growth rate was 2.2 percent. Fourth five year plan (1969-1974) The Indira Gandhi government nationalised 14 major Indian banks and the Green Revolution in India advanced agriculture. Funds earmarked for the industrial development had to be diverted for the war effort. Target Growth: 5.7% Actual Growth: 3.30% Fifth five year plan (1974- 1979) Stress was by laid on employment, poverty alleviation, and justice. The plan also focused on self-reliance in agricultural production and defence. The Indian national highway system was introduced and many roads were widened to accommodate the increasing traffic. Tourism also expanded. Target Growth: 4.4% Actual Growth: 5.0 Sixth five year plan (1980-1985) The sixth plan also marked the beginning of economic liberalization. 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 Plan and Rajiv Gandhi was prime minister during this period. Family planning was also expanded in order to prevent overpopulation. Target Growth: 5.2% Actual Growth: 5.4% Seventh five year plan (1985-1990)
The Seventh Plan marked the comeback of the Congress Party to power. The plan laid stress on improving the productivity level of industries by upgrading of technology.
The main objectives of the 7th five year plans were to establish growth in areas of increasing economic productivity, production of food grains, and generating employment . The 7th Plan had strived towards socialism and energy production at large. Target Growth: 5.0% Actual Growth: 5.7% 1989–91 was a period of economic instability in India and hence no five year plan was implemented. Between 1990 and 1992, there were only Annual Plans. In 1991, India faced a crisis in Foreign Exchange (Forex) reserves, left with reserves of only about US$1 billion. Thus, under pressure, the country took the risk of reforming the socialist economy. P.V. Narasimha Rao was the twelfth 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 (currently, 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 privatisation and liberalisation in India. Eighth five year plan (1992-1997) Modernization of industries was a major highlight of the Eighth Plan. India became a member of the World Trade Organization on 1 January 1995.This plan can be termed as Rao and Manmohan model of Economic development. The major objectives included, controlling population growth, poverty reduction, employment generation, strengthening the infrastructure, Institutional building, tourism management, Human Resource development, Involvement of Panchayat raj, Nagar Palikas, N.G.O'S and Decentralisation and people's participation. Energy was given priority with 26.6% of the outlay. An average annual growth rate of 6.78% against the target 5.6%[5] was achieved. Ninth five year plan (1997-2002) The main objectives were speedy industrialization, human development, full-scale employment, poverty reduction, and self-reliance on domestic resources. Ninth Five Year Plan was formulated amidst the backdrop of India's Golden jubilee of Independence. During the Ninth Plan period, the growth rate was 5.35 per cent, a percentage point lower than the target GDP growth of 6.5 per cent. Tenth five year plan (2002 - 2007) * Attain 8% GDP growth per year. * Reduction of poverty ratio by 5 percentage points by 2007. * Providing gainful and high-quality employment at least to the addition to the labour force. * Reduction in gender gaps in literacy and wage rates by at least 50% by 2007. Target growth:8.1% Growth achieved:7.7% Eleventh five year plan (2007-2012)
The eleventh plan has the following objectives: 1. Income & Poverty * Accelerate GDP growth from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016–17 * Increase agricultural GDP growth rate to 4% per year to ensure a broader spread of benefits * Create 70 million new work opportunities. * Reduce educated unemployment to below 5%. * Raise real wage rate of unskilled workers by 20 percent. * Reduce the headcount ratio of consumption poverty by 10 percentage points. 2. Education * Reduce dropout rates of children from elementary school from 52.2% in 2003–04 to 20% by 2011–12 * Develop minimum standards of educational attainment in elementary school, and by regular testing monitor effectiveness of education to ensure quality * Increase literacy rate for persons of age 7 years or above to 85% * Lower gender gap in literacy to 10 percentage point * Increase the percentage of each cohort going to higher education from the present 10% to 15% by the end of the plan 3. Health * Reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000 live births * Reduce Total Fertility Rate to 2.1 * Provide clean drinking water for all by 2009 and ensure that there are no slip-backs * Reduce malnutrition among children of age group 0–3 to half its present level * Reduce anaemia among women and girls by 50% by the end of the plan 4. Women and Children * Raise the sex ratio for age group 0–6 to 935 by 2011–12 and to 950 by 2016–17 * Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are women and girl children * Ensure that all children enjoy a safe childhood, without any compulsion to work 5. Infrastructure * Ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power. * Ensure all-weather road connection to all habitation with population 1000 and above (500 in hilly and tribal areas) by 2009, and ensure coverage of all significant habitation by 2015 * Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012 * Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by 2016–17 6. Environment * Increase forest and tree cover by 5 percentage points. * Attain WHO standards of air quality in all major cities by 2011–12. * Treat all urban waste water by 2011–12 to clean river waters. * Increase energy efficiency by 20 %
Target growth:8.33% Growth achieved:7.9% 12th five year plan (2012- 2017) The 12th plan began on April 1, 2012 but the plan document is traditionally completed after the plan period commences. Is under drafting which aims the growth rate at 9.5%. With the deteriorating global situation, the Deputy Chairman of the Planning Commission Mr Montek Singh Ahluwalia has said, “It is not possible to think of an average of 9 per cent (in 12th Plan). I think somewhere between 8 and 8.5 per cent is feasible,”. “When I say feasible...that will require major effort. If you don’t do that, there is no God given right to grow at 8 per cent. I think given that the world economy deteriorated very sharply over the last year...the growth rate in the first year of the 12th Plan (2012-13) is 6.5 to 7 per cent.”
He also indicated that soon he would share his views with other members of the Commission to choose a final number (economic growth target) to put before the country’s NDC for its approval.
Though the 12th Plan has taken off, it is yet to be formally approved. The Planning Commission has set a deadline of September for taking the approval of the National Development Council. The council is expected to meet after July subject to the convenience of the Prime Minister.
Poverty
The Government intends to reduce poverty by 10 per cent during the 12th Five-Year Plan. Mr Ahluwalia said, “We aim to reduce poverty estimates by 2 per cent annually on a sustainable basis during the Plan period.”
According to the Tendulkar methodology, the percentage of population below the poverty line was 29.8 per cent at the end of 2009-10. This number includes 33.8 per cent in the rural areas and 20.9 per cent in the urban areas. The commission had said, while using the Tendulkar poverty line, the rate of reduction in the five years between 2004-05 and 2009-10, was about 1.5 percentage points each year, which was twice that when compared to the period between 1993-95 to 2004-05.
The Twelfth Five Year Plan will commence in 2012-13. Before the Plan itself is unveiled, the Planning Commission normally prepares an Approach Paper which lays out the major targets, the key challenges in meeting them, and the broad approach that must be followed to achieve the stated objectives.
The Approach Paper is approved by the Cabinet and the National Development Council which includes all the Chief Ministers of the States. It provides the architecture which is fleshed out in detail in the Plan itself.
Approach to the 12th Five Year Plan The Planning Commission has started the process of preparing an Approach to the 12th Five Year Plan and is adopting a new and more consultative approach. In addition to consultations conducted across the country by organizations representing various citizens' groups e.g., women, dalits and youth, the Planning Commission has for the first time adopted consultation from interested stake holders via the Commission's web-site. Based on an intensive process within the Commission, "Twelve Strategy Challenges" have been identified to initiate these consultations. The "strategy challenges" refer to some core areas that require new approaches to produce the desired results. These should not be viewed as chapters of the Twelfth Plan, nor the layout of the Approach Paper, which will be decided only after the consultations are complete. They are only a way of organizing thinking in critical areas.
Strategy Challenges
Based on an intensive process within the Commission, the following "Twelve Strategy Challenges" have been identified to initiate the consultations. The "strategy challenges" refer to some core areas that require new approaches to produce the desired results. * Enhancing the Capacity for Growth
Today, India can sustain a GDP growth of 8 percent a year. Increasing this to 9 or 10 percent will need more mobilization of investment resources; better allocation of these resources through more efficient capital markets; higher investment in infrastructure through both public and PPP routes; and more efficient use of public resources. more... * Enhancing Skills and Faster Generation of Employment
It is believed that India's economic growth is not generating enough jobs or livelihood opportunities. At the same time, many sectors face manpower shortages. To address both, we need to improve our education and training systems; create efficient and accessible labor markets for all skill categories; and encourage the faster growth of small and micro enterprises. more...
Enhancing Skills to Reap Demographic Dividend
Developing Efficient and Fair Labor Markets for All Categories of Workers.
Improving Financial and Regulatory Ecosystem for the Growth of Enterprises.
Sustainable Livelihoods for Alleviation of Poverty * Managing the Environment
Environmental and ecological degradation has serious global and local implications, especially for the most vulnerable citizens of our country. How can we encourage responsible behavior, without compromising on our developmental needs? more...

Five components is one of the Challenges:
. Land, mining, and Forest Rights
. Mitigation and Adaptation Strategy for Climate Change
. Waste management and Pollution Abatement
. Degradation of forests and loss of biodiversity
. Issues of Environment Sustainability

* Markets for Efficiency and Inclusion
Open, integrated, and well-regulated markets for land, labor, and capital and for goods and services are essential for growth, inclusion, and sustainability. We have many sectors were markets are non-existent or incomplete, especially those which are dominated by public provisioning. How do we create or improve markets in all sectors? * Decentralisation, Empowerment and Information
Greater and more informed participation of all citizens in decision-making, enforcing accountability, exercising their rights and entitlements; and determining the course of their lives is central to faster growth, inclusion, and sustainability. How can we best promote the capabilities of all Indians, especially the most disadvantaged, to achieve this end? * Technology and Innovation
Technological and organizational innovation is the key to higher productivity and competitiveness. How can we encourage and incentivize innovation and their diffusion in academia and government as well as in enterprises of all sizes. more...

Enrichment of Knowledge base
Incentivizing R&D in Public and Private Sector
Improving Governance in S&T Institutions:
University, industry, and Scientific Establishment Collaboration:
Promoting Collaborations through Clusters
Supportive Financial System
Platform for Best Practices and Innovations:
Improving the Flow of Technology
Intellectual Property Rights
Use of GIS for Development (geographical information system) * Securing the Energy Future for India
Faster and more inclusive growth will require a rapid increase in energy consumption. Since we have limited domestic resources, how can we meet this need equitably and affordably without compromising on our environment? more... * Accelerated Development of Transport Infrastructure
Our inadequate transport infrastructure results in lower efficiency and productivity; higher transaction costs; and insufficient access to our large national market. How can we create an efficient and widespread multi-modal transport network. more... * Rural Transformation and Sustained Growth of Agriculture
Rural India suffers from poor infrastructure and inadequate amenities. Low agricultural growth perpetuates food and nutritional insecurities, which also reduces rural incomes. How can we encourage and support our villages in improving their living and livelihood conditions in innovative ways? * Managing Urbanization
Most of our metros and cities are under severe stress with inadequate social and physical infrastructure coupled with worsening pollution. Migration pressures are likely to increase. How do we make our cities more liveable? What can we do today to ensure that smaller cities and towns are not similarly overwhelmed tomorrow? more...
Urbanization in India is expected to accelerate
India has not paid systematic attention to urbanization so far
Way forward :

Inclusive Cities:
Urban Governance:
Financing:
Planning:
Local capacity building:
Affordable housing: * Improved Access to Quality Education
Educational and training facilities have been increasing rapidly. However, access, affordability, and quality remain serious concerns. Employability is also an issue. How can we improve the quality and the utility of our education, while ensuring equity and affordability? * Better Preventive and Curative Health Care
India's health indicators are not improving as fast as other socio-economic indicators. Good healthcare is perceived to be either unavailable or unaffordable. How can we improve healthcare conditions, both curative and preventive, especially relating to women and children? This is the site for further explanation http://12thplan.gov.in/approach.php As indicated from the planning commission’s presentation to the prime minister on April 21, the quantitative metrics known thus far in the early stage of the five-year plan are:

A target of GDP growth in the 9 percent to 9.5 percent range
An increase in literacy rates to 100 percent between the plan’s period from 2012 to 2017
An increased expenditure on health from 1.3 percent to 2.0 percent of GDP
In a boon for industry, the planning commission indicated that it aims to have industry and manufacturing-related activities grow by 11 percent over the next five years, contrasted to 8 percent over the previous 11th five-year plan.
Conclusion
The commission has till date restricted its five-year plans to projections using economic data like national accounts trends, import-export figures, investment and savings rate among others.

However, it now plans to take into account how the aspirations of people, public and market sentiments, political will, governance issues like corruption can influence the economics of the country and the trajectory of the plan.

All these components combined with the absence or presence of crucial policy decisions will be used to chalk out various scenarios in the plan document.