Planning in India The Tenth Five Year Plan (2002-2007)

The Tenth Five Year Plan was formulated with the clear perspective that development objectives need to be defined not only in terms of an increase in Gross Domestic Product (GDP) but also in terms of human well being. The Tenth Five Year Plan led to a boost in the Indian economy, thanks to a number of effective initiatives taken by the Government. Atal Bihari Vajpayee was the Prime Minister of India during the earlier part of the Plan. Manmohan Singh took over in 2004.The Tenth Five Year Plan marked the return of visionary planning. India had been among the ten fastest growing nations in the last two decades and expectations were high about a consistent increase. In fact, the Tenth Five Year Plan aimed to take India to the position  of “the fastest growing nation in the world.” The Tenth Five Year Plan also saw the advent of the National Rural Employment Guarantee Act (NREGA). Many other important programmes were initiated during the Tenth Five Year Plan including the Guru Golwalkar Jan Bhagidari Vikas Yojana and the Swavivek District Development Scheme (SDDS). The Special Economic Zones (SEZs) were also introduced to encourage industrial growth, increase employment opportunities and investment in social infrastructure.


Based on the availability of resources, the outlay for the Tenth Plan was approved for Rs. 46,614 crores. However, the ultimate actual plan allocation for the Tenth Plan worked out to Rs.69,511 crores, with an increase of nearly 49% over the approved outlay.

  1.  Target growth: 8.1 per cent. Growth achieved: 7.7 per cent.
  2.  Cleaning of major polluted river stretches.
  3.  The targeted GDP growth for the Plan was 8 per cent but by the end of the period it reached an actual of 5.9 per cent.
  4.  The secondary sector including manufacturing and electricity, gas and water supply grew at a rate of 5.37 per cent against the target of 7.12 per cent.



Renovation in all  Sectors Main Focus of the Plan

The primary aim of the Tenth Five Year Plan was to renovate and transform the nation extensively, bringing it not only at par with some of the fastest growing economies across the globe but also overtaking them. It  intended to initiate an economic growth of 10% on an annual basis. This decision was taken after India recorded a consistent 7% GDP growth throughout the past decade.

  1.  Modification of policies according to current needs.
  2.  Streamlined management of financial and administrative capabilities of the country.
  3.  Providing conducive environment for the private sector.
  4.  Greater flexibility in fiscal and monetary policies for greater growth of the economy.
  5.  According importance to the performance of the laggard states.
  6.  Continuous efforts to ensure equity and social justice.
  7.  Attention towards sectors which had large employment potential.
  8.  Agricultural development to be taken as the core of the Plan to ensure overall growth.


The main objective of the Tenth Five Year Plan was to renovate the various sectors of the country and transform it into one of the fastest growing nations in the world. Other aspects which constituted the Tenth Five Year Plan were:

  •  Making provision for useful and lucrative ‘best quality’ employment to the population.
  •  Encouraging the involvement of the private sector.
  •  Flexible economic reforms which would be more investor friendly.
  •  Creation of a congenial investment environment.
  •  Setting up state-of-the-art infrastructure.
  •  Capacity building in industry.
  •  Corporate transparency.
  •  Mobilising and optimising all financial resources.
  •  Implementation of friendly industrial policy instruments.


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