Ephemeral prosperity

ECONOMIC PLANNING SERIES

- KRISHNA GUPTA

The seventh plan was launched in 1985 on the back of a successful growth run in the sixth plan. Additionally, there was a move to use more technology to solve intractable policy and governance issues. This was also the first plan to be drafted by the new government led by Prime Minister Rajiv Gandhi, which was elected in 1984.

Key features

The seventh plan outlined a perspective plan for 15 years (1985-2000) as well as for the 5-year period of 1985-90.

In the perspective plan, there was a detailed discussion on all sectors of the economy, and strategies for each sector were outlined. We will touch upon the broad picture and the major sectors here. The perspective plan suggested a 5 per cent target of GDP growth per annum for 15 years. The broad objectives remained the same, as is clear from this passage from page 24 of the seventh plan document:

‘The elimination of poverty and creating conditions of new full employment, the satisfaction of the basic needs of the people in terms of food, clothing and shelter, attainment of universal elementary education, and access to health facilities for all’.

Perhaps for the first time, there was a clear emphasis on technological development and increased productivity. The long-term development strategy included action points on all important aspects of the economy, namely: population control, improving quality of life through better education and health coverage, energy planning, use of science and technology in agriculture and industry, transport and communications, optimal utilisation of human resources, land resources, water resources and forests etc.