Taste of success

Implemented amid turbulent domestic and global situations, the twin sixth plan not just managed to achieve its growth target but also put a tab on inflation and improved balance of payment scenario

- KRISHNA GUPTA

There were two sixth plans: one which was launched by the Janata Party government in 1978, and the other which was launched by the freshly re-elected Congress Party government in 1980. As we saw in the previous article on the fifth five-year plan, the fifth plan was rejected by the Janata Party government prematurely. In this article we will review the key features of the two sixth plans and take up a critical analysis of these.

Key features

Sixth plan of the Janata government: 1978-83 

The first sixth plan was launched in 1978, but had to be terminated in 1980 after the general elections voted a new government to power. This plan was conceptualised as a series of rolling plans: meaning that there would be a review and assessment at the end of each year and the next year’s plan would be launched based on this. Further, there were three types of plans: the annual plan, the medium-term plan for about 3-5 years, and a long-term perspective plan for 10,15 and 20 years. The Janata plan blamed the Nehru model of growth for the growing unemployment and increased inequality. The focus of the plan was therefore to generate employment in agriculture and allied activities in rural areas, encourage small industries producing consumer goods for mass consumption, and to raise incomes of the poorest through the Minimum Needs Programme.