Achievements of economic planning are as follows : 

i. Growth of national income :

It is clear from the above table that the development rate remained at an average of around 3.5 per cent in the first three five year plans, which was named ‘Hindu Growth Rate’ by Prof. Rajkrishna. The growth rate increased after the sixth five year plan, which was a favourable sign of development, but it again declined in the ninth five year plan. Growth rate has been the highest in the eleventh five-year plan.

ii. Development in Agricultural sector : Agricultural productivity has also shown an upward trend during the plan period. The production of food grains which was 5.40 crore tonnes in 1950-51 increased to 26.48 crore tonnes in 2013-2014. Thus, food grain production witnessed a 5-fold increase. The growth rate in agricultural sector was 3.3 per cent in the Eleventh five-year plan as against the targeted growth rate of 4 per cent.

iii. Growth in Industries : In the first five year plan, much of the capital was invested to develop industry and defence. Industrial production has increased to a great extent, but later on it began declining. In this duration, the production of iron and steel, aluminum, engineering goods, chemicals, fertilizers and petroleum products increased.

v. Balance of payment : During the plan period, more capital was needed for developmental policies, and as a result, deficit budget had to be made. This deficit increased continually, and to balance it, devaluation of currency was done, which had an adverse effect on the balance of payment. The trade deficit of India remained unfavourable in all years except for 1972-73 and 1976-77. The foreign exchange reserve increased in the planing period. In December 2015 it reached upto 351.62 billion dollar.

V. Life expectancy, which was 32 years in 1951 increased to 65 years in 2001.

vi. The basic economic structure and social structure developed speedily in the plan duration. Education system developed and rates of savings and investment also increased.

Shortcomings of Economic planning : 

i. Failure in eradicating poverty : The main strategy of socialist development adopted in the plan duration was to provide people with a minimum standard of living. For this purpose, various programmes were initiated in the five year plans, and “garibi hatao” programme was also launched in the fifth five year plan. But, even today, about 1/4th population of India lives below the poverty line. According to the 61 st round of NSSO, 26.1 per cent population lived below the poverty line in 1999-2000. According to Suresh. D. Tendulkar Committee report, country’s 37.2 per cent population lived below poverty line. According to the 68th Round, 21.9% population lived below the poverty line (BPL).

ii. Slow growth rate in employment : Though many programmes of eradicating unemployment have been launched during the plan period, but all these programmes proved insufficient. The number of unemployed persons was 53 lakhs in the first plan, which increased to 7.49 millionin 1993-94 and 10.84 million in 2011-2012.

iii. Increase in inequality of income and wealth : In planning, various solutions and methods were adopted for this, but all the studies brought out the conclusion that the rich class got more opportunities for economic development. Between 2004-05 and 2009-10, income inequality has increased in rural areas of 10 states and urban areas of 18 states.

iv. Inadequacy of industrial development : Development of infrastructural industries in the country was given the highest priority in the second five year plan. But after this, the share of industries in total plan expenditure kept on decreasing, which obstructed the development of industries. The range of black economy also increased during the plan period. In the year 2008, it was calculated to be 640-7 billion dollars which was 50 per cent of the Gross Domestic Product of that year. But despite failures the economy has interested increase in GDP, per capita income, standard of living and rate of literary during the planning period. RBSE Class 1