Third Five Year Plan
Introduction
The Third Five Year Plan was an ambitious economic development initiative undertaken by the Government of India from 1961 to 1966. This plan aimed to make India self-reliant and self-generating in various sectors, including agriculture, industry, and services. It was part of a series of five-year plans, which were central to India's planned economic development strategy post-independence. The Third Five Year Plan is notable for its focus on achieving a balanced economy, reducing unemployment, and addressing the challenges of rapid population growth.
Objectives
The primary objectives of the Third Five Year Plan were:
- To achieve an increase in the national income by 5% annually.
- To expand employment opportunities and reduce unemployment.
- To promote social justice and reduce income inequalities.
- To achieve self-sufficiency in food grains and increase agricultural production.
- To accelerate industrialization and diversify the industrial base.
- To enhance the development of human resources through education and health services.
Agricultural Development
Agriculture was a major focus of the Third Five Year Plan, given its significance in the Indian economy. The plan aimed to achieve self-sufficiency in food grains and increase agricultural productivity through several measures:
Land Reforms
The plan emphasized the need for land reforms to ensure equitable distribution of land and improve agricultural productivity. Measures included the consolidation of holdings, the abolition of intermediaries, and the implementation of tenancy reforms.
Irrigation and Water Management
Significant investments were made in irrigation projects to ensure a reliable water supply for agriculture. Major projects included the construction of dams, canals, and tube wells. These efforts aimed to increase the irrigated area and reduce dependence on monsoon rains.
Agricultural Research and Extension
The plan promoted agricultural research and the dissemination of modern farming techniques. Agricultural universities and research institutions were strengthened, and extension services were expanded to educate farmers about new technologies and practices.
Green Revolution
The Third Five Year Plan laid the groundwork for the Green Revolution, which began in the mid-1960s. This involved the introduction of high-yielding varieties of seeds, the use of chemical fertilizers and pesticides, and improved irrigation practices.
Industrial Development
The Third Five Year Plan aimed to accelerate industrialization and diversify the industrial base. The focus was on both heavy industries and small-scale industries.
Heavy Industries
The plan prioritized the development of heavy industries, including steel, machinery, and chemicals. Public sector enterprises played a crucial role in this regard, with significant investments in new industrial projects and the expansion of existing ones.
Small-Scale Industries
Recognizing the importance of small-scale industries in generating employment and promoting regional development, the plan provided support for the establishment and growth of these industries. Measures included financial assistance, technical support, and marketing facilities.
Industrial Licensing
The plan introduced an industrial licensing policy to regulate the establishment and expansion of industries. This aimed to ensure balanced regional development and prevent the concentration of industries in specific areas.
Social Development
The Third Five Year Plan also focused on social development, with significant investments in education, health, and housing.
Education
The plan aimed to expand access to education at all levels, from primary to higher education. Efforts included the construction of new schools and colleges, the recruitment of teachers, and the provision of scholarships for students from disadvantaged backgrounds.
Health
The plan sought to improve healthcare services by expanding the network of hospitals and clinics, training healthcare professionals, and promoting public health initiatives. Special attention was given to maternal and child health, as well as the control of communicable diseases.
Housing
To address the housing shortage, the plan promoted the construction of affordable housing units, particularly for low-income families. Urban development programs were also initiated to improve living conditions in cities and towns.
Challenges and Outcomes
The Third Five Year Plan faced several challenges, including natural disasters, political instability, and economic constraints. Despite these challenges, the plan achieved notable successes in various sectors.
Natural Disasters
The plan period was marked by severe droughts in 1965 and 1966, which adversely affected agricultural production and food security. These droughts underscored the need for improved irrigation and water management systems.
Political Instability
The plan period also witnessed political instability, including the Indo-China War of 1962 and the Indo-Pakistan War of 1965. These conflicts diverted resources away from development projects and strained the economy.
Economic Constraints
Limited financial resources and foreign exchange constraints posed significant challenges to the implementation of the plan. Despite these constraints, the plan achieved moderate success in increasing industrial production and expanding infrastructure.
Legacy
The Third Five Year Plan laid the foundation for several long-term developments in India. It highlighted the importance of self-reliance, balanced regional development, and social justice. The plan's emphasis on agricultural productivity and industrial diversification had lasting impacts on the Indian economy.