The Sixth Five-Year Plan (1980-85) marked a significant shift in India's economic strategy, addressing the shortcomings of previous plans and laying the groundwork for future liberalization.
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Key Initiatives
Addressing Past Issues: The plan acknowledged and sought to rectify limitations of earlier plans, particularly their lack of integration between different sectors and their uneven focus on growth.
Sectoral Integration: Emphasis was placed on integrating various sectors of the economy, like agriculture, industry, and services, for holistic development.
Boosting Secondary Sector: Higher growth in the secondary sector, encompassing manufacturing and construction, was a central goal to drive overall economic progress.
Export and National Income: Increasing exports and national income were prioritized to strengthen the economy and improve living standards.
Poverty and Unemployment Eradication: Combating poverty and unemployment remained a crucial objective, with the launch of several poverty alleviation programs like IRDP (Integrated Rural Development Programme) and NREP (National Rural Employment Programme).
Perspective Plan and Broad banding: A long-term Perspective Plan (1979-2000) was introduced alongside the shorter-term Five-Year Plan, providing a broader vision and flexibility in implementation. Broad banding in targets allowed for adjustments based on evolving circumstances.
Liberalization Measures: Initial steps towards economic liberalization were taken, such as reducing price controls and encouraging private sector participation, to stimulate growth and efficiency.
Outcomes
Achieved Growth Target: The plan successfully exceeded its target, achieving a 5.54% growth rate, showcasing its effectiveness in stimulating economic activity.
Modest Progress in Poverty Reduction: While poverty levels remained high, the plan's initiatives contributed to some reduction in poverty rates, particularly in rural areas.
Laid Groundwork for Future Reforms: The Sixth Five-Year Plan's emphasis on pragmatism, flexibility, and openness to liberalization paved the way for more significant economic reforms in subsequent decades.
The Sixth Five-Year Plan marked a turning point in India's economic development. It addressed the limitations of previous plans, achieved its growth targets, and initiated the process of liberalization that would shape India's economic trajectory in the years to come.