Fourth Five-Year Plan (1969-1974) part 18

 Okay, here are the notes from the provided video transcript, focusing on the Fourth Five-Year Plan and related economic developments:

Recap from Last Video:

• Discussed details of the Annual Plans from 1966-1969.

Fourth Five-Year Plan (1969-1974)

• Time Period: Started in 1969, ended in 1974.

• Priorities/Main Focus (ప్రాధాన్యత అంశం):

  • Economic Stability (ఆర్థిక స్థిరత్వం)

  • Self-Reliance (స్వావలంబన)

  • Note: This combination was a previous exam question.

• Architect/Designer (రూపకర్త): D.R. Gadgil (డి ఆర్ గాడ్గిల్).

  • He was also the Deputy Chairman of the Planning Commission for this plan.

• Growth Model (వృద్ధి నమూనా): A.S. Manne and Rudra's Growth Model (ఏ ఎస్ మన్నే, రుద్రాల వృద్ధి నమూనా).

• Chairman (అధ్యక్షుడు): Indira Gandhi (ఇందిరా గాంధీ).

  • This was the first plan introduced under her chairmanship.

• Deputy Chairman (ఉపాధ్యాక్షులు): D.R. Gadgil (డి ఆర్ గాడ్గిల్).

• Growth Rate Targets & Achievement:

  • Target Growth Rate (వృద్ధి రేటు లక్ష్యం): 5.7%

  • Achieved Growth Rate (సాధించిన వృద్ధి రేటు): 3.3%

  • Achieved Per Capita Income Growth Rate (సాధించిన తలసరి ఆదాయ వృద్ధి రేటు): 1%

  • Note: After the disastrous failure of the 3rd Plan, the 4th Plan also registered a very low growth rate.

• Expenditure (వ్యయం):

  • Estimated Expenditure (అంచనా వ్యయం): ₹15,902 crores

  • Actual Expenditure (వాస్తవ వ్యయం): ₹15,779 crores

• Sectoral Allocation of Funds ( అధిక నిధులు కేటాయించింది):

  • 1st: Agriculture and Irrigation (వ్యవసాయము మరియు నీటిపారుదల) - 24%

    • Note: After the 1st Plan, the 4th Plan gave the highest weightage to agriculture. The 1st and 4th plans are noted for their high priority to agriculture.

  • 2nd: Industries and Minerals (పరిశ్రమలు మరియు ఖనిజాలు) - 23%

  • 3rd: Social Services (సాంఘిక సేవలు) - 20%

Special Features & Key Events of the Fourth Plan Era:

1. Expenditure Anomaly:

   • The 1st, 2nd, and 4th Five-Year Plans are unique because their actual expenditure was less than the estimated expenditure.

   • 4th Plan: Estimated ₹15,902 cr, Actual ₹15,779 cr.

2. "Garibi Hatao" (గరీబీ హటావో) Slogan:

   • The famous slogan for poverty eradication was introduced during this plan.

3. Shift in Economic Approach:

   • Until 1970: The government relied on the Trickle-Down Effect Theory (ట్రికిల్ డౌన్ ఎఫెక్ట్ థియరీ) to achieve its targets, assuming benefits to one sector would eventually reach all.

   • After 1970: Recognizing the limitations of the trickle-down effect (wealth concentration, rising inequality), the government shifted to the Target Group Growth Approach (టార్గెట్ గ్రోత్ అప్రోచ్). This involved identifying specific, lagging groups and designing programs to directly benefit them (e.g., schemes for small/marginal farmers).

4. Development Programs (అభివృద్ధి కార్యక్రమాలు):

   • SFDA & MFAL (1969):

     • SFDA (Small Farmers Development Agency - చిన్న రైతుల అభివృద్ధి ఏజెన్సీ): For farmers with 1 to 2 hectares (approx. 2.5 to 5 acres).

     • MFAL (Marginal Farmers and Agricultural Labourers Agency - ఉపాంత రైతులు మరియు వ్యవసాయ కూలీలు): For farmers with less than 1 hectare (less than 2.5 acres) and agricultural laborers.

     • Context: Based on the M.L. Dantwala Committee report (1969) highlighting high seasonal unemployment. These agencies aimed to provide loans (with 25% subsidy) for alternative income generation (livestock, poultry, horticulture) during off-seasons.

   • Nationalization of 14 Banks (14 బ్యాంకుల జాతీయీకరణ) (1969):

     • Banks with capital exceeding ₹50 crores were nationalized.

     • Note: The video lists all 14 banks and mentions that some have since merged. Currently, 10 of these original 14 (plus SBI and Punjab & Sind Bank) form the public sector banks.

   • CSRE (Crash Scheme for Rural Employment) (1971):

     • Objective: To provide employment to 1000 people per district for 10 months a year.

   • RWS (Rural Works Scheme) (1971):

     • Objective: To create public assets in rural areas (roads, drains) and provide employment.

   • NEDC (North Eastern Development Council - ఈశాన్య రాష్ట్రాల అభివృద్ధి మండలి) (1971):

     • Objective: Focused development of North-Eastern states.

     • Headquarters: Shillong.

     • Includes 7 sister states + Sikkim (added later).

   • ARWSP (Accelerated Rural Water Supply Programme) (1972):

     • Objective: To provide safe drinking water to rural areas.

     • (Note: An Accelerated Urban Water Supply Programme was started in 1993).

   • GIC (General Insurance Corporation - సాధారణ బీమా సంస్థ) (1972):

     • Formed by nationalizing and merging various private general insurance companies.

     • Provides insurance against loss/damage (e.g., vehicle, crop, property), distinct from LIC which covers life insurance.

   • DPAP (Drought Prone Area Programme - కరువు పీడిత ప్రాంతాల అభివృద్ధి కార్యక్రమం) (1973):

     • Objective: Development of areas frequently affected by drought.

     • Identified across 16 states, 183 districts (in 2023-24).

     • Funding: 75% Central, 25% State.

     • Focus: Soil conservation, afforestation, water resource management.

   • CADP (Command Area Development Programme - ఆయకట్టు లేదా మెట్ట ప్రాంతాల అభివృద్ధి కార్యక్రమం) (1974):

     • Objective: To ensure efficient utilization of irrigation potential created by major and medium irrigation projects.

     • Focus: Development of ayacut (irrigated land) and metta (upland/unirrigated) areas.

     • Note: In 1974, the Department of Irrigation was separated from the Ministry of Agriculture. CADP was renamed Water Management Development Programme in 2004.

   • Operation Flood (White Revolution - శ్వేత విప్లవం) (1970):

     • Led by: Verghese Kurien.

     • Objective: To significantly increase milk production in India. This marked a revolutionary change in the dairy sector.

Key Takeaways from Fourth Plan:

• A period of significant policy shifts and the launch of targeted welfare and development programs.

• Continued challenges in achieving high economic growth rates.

• Emphasis on social justice and regional development alongside economic goals.