The Fourth Five-Year Plan (1969-1974) of India was a period of mixed achievements and challenges. While it fell short of its ambitious target of 5.7% growth rate, achieving only 2.05%, it also witnessed significant developments and faced external shocks that impacted its progress.
.jpg)
Goals and Priorities
- Stability and System Planning: The plan prioritized economic stability over rapid growth, aiming to build a more resilient and sustainable system.
- Progressive Self-reliance: The focus was on reducing dependence on foreign aid and promoting domestic resource mobilization for economic development.
- Quick-yielding Projects: To ensure visible results and maintain public confidence, the plan prioritized projects with shorter gestation periods.
Challenges and Obstacles
1971 Bangladesh War: The war effort diverted resources and disrupted economic activity, impacting growth and development plans.
Monsoon Failures (1971, 1972, 1973): Consecutive droughts led to agricultural setbacks, food shortages, and inflationary pressures.
Nationalization of Banks (1969): While aiming for greater control over financial resources, the nationalization process also brought its own set of challenges and complexities.
1973 Oil Crisis: The global oil price shock further exacerbated inflationary pressures and impacted the economy's import bill.
Garibi Hatao Program: Indira Gandhi's ambitious poverty alleviation program, while well-intentioned, placed significant strain on the government's finances.
Positive Developments
Infrastructure Development: The plan continued investments in infrastructure like irrigation, power, and transportation, laying the foundation for future growth.
Green Revolution: The adoption of new technologies and improved agricultural practices led to increased agricultural productivity in some regions.
Social Sector Reforms: The plan emphasized education and healthcare, promoting social development and human capital formation.
The Fourth Five-Year Plan was a complex period marked by both progress and challenges. While falling short of its initial growth target, it laid the groundwork for future development in infrastructure, agriculture, and social sectors. However, the external shocks and ambitious social programs also put pressure on the economy, highlighting the need for a balanced approach to development in future plans.