What is Economic Planning? Explain the targets of the 12th five-year plan.

Economic planning is a time-bound programme to achieve certain objectives by allocating available resources under the control of a central planning authority. 

Prof. H. D. Dickinson defines economic planning as – “Economic planning is the making of major economic decisions such as what and how much is to be produced how, when and where it is to be produced, to whom it is to be allocated, by the conscious decision of the determinate authority, on the basis of a comprehensive survey of the economy as a whole.”

12th Five Year Plan (2012-2017): 

This plan emphasizes ‘Sustainable Growth’. This plan focused on the development of the manufacturing sector, agriculture, education, health, and social welfare, etc. 

(i) Economic Growth: 

• It aims at an average GDP growth rate of 8%. 
• It seeks to achieve 4% growth in the agriculture sector. 
• Every state’s average growth rate must increase as compared to the 11th plan.

(ii) Poverty and Employment: 

• It aims at reducing the head-count ratio of poverty by 10%.
• Generating 50 million employment opportunities in the non-farm sector and providing skill certification.

  (iii) Education:

• Eliminating gender and social gap in education.
• Secondary education for all by 2017.
• Access to higher education with reference to skill development. 

(iv) Health: 

• Reducing rate of infant mortality. 
• Reduce total fertility rate to 2.1% 
• National Family Health Survey (NFHS – 4) was conducted in 2014-2015. In NFHS-4, reduce malnutrition among the children (0-3 years) was the target. 

(v) Infrastructure: 

• Increase infrastructure investment to 9% of GDP.
• Achieving universal road connectivity and access to power for all villages. 
• To increase electricity by adding 80,000 MW and 55,000 MW of renewable energy capacity. 
• Connecting all villages with all-weather roads and upgrading national and state highways to a minimum two-lane standard. Modified and accelerated irrigation benefit programme. 

(vi) Service Delivery: 

• Provision of banking services for 90% of households in India. 
• Major welfare benefits and subsidies through Aadhar card. 

(vii) Environment: 

• Increasing green cover by 1 million hectares every year.