The seventh plan was introduced after the country had enjoyed a reasonable rate of economic growth during the sixth plan, where there had been steady growth in agriculture, control on rate of inflation and favourable balance of payments.
This plan had a strong base on which it could build the superstructure of industrial development for the betterment of India’s economic position. The plan stressed on improving the productivity level of industries by up gradation of technology. The plan tried to bring about a self sustained economy in the country.
Objectives
To increase economic productivity, production of food grains and generating employment opportunities through the development of various policies and programmes.
The thrust areas of the 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
Making India an independent economy
To reduce social and economic disparities
Energy protection and development of non-conventional energy source.
Achievements
Special programme like Jawahar Rozgar Yojana was launched to reduce the unemployment problem.
The Gross Domestic Product (GDP) grew at an average rate of 5.8 per cent exceeding the targeted growth rate by 0.8 per cent.
Food grains production during this plan grew by 3.23%, as compared to long term growth rate of 2.68% between 1967-68 and 1988-89.
Annual Plans (1990-92) The Eighth Five Year Plan (1990-95) could not take off due to the fast changing political situation at the centre. The new Government which assumed power in 1991, decided that the Eighth Five Year Plan would commence on 1st April, 1992 and the years 1990-91 and 1991-92, be treated as separate annual plans. The basic thrust of these annual plans was on maximization of employment and social transformation.
In 1991, India faced a crisis in Foreign Exchange (Forex) reserves as was left with reserves of only about $1 billion (US). This period was the beginning of privatization and liberalization in India.
Participants