EconomicsISC Class 11 · Planning and Economic Development in India

Plans 7 to 12, Achievements and Shortcomings, NITI Aayog (ISC Class 11 Economics)

Updated 17 October 2026 · Fact-checked

The Seventh Plan aimed at food, work and productivity; the Eighth (the first after liberalisation) at human resource development; the Ninth at growth with social justice; the Tenth at monitorable targets; the Eleventh at faster and more inclusive growth; and the Twelfth at faster, more inclusive and sustainable growth. Planning built an industrial base and food security but left poverty, unemployment and inefficiency. NITI Aayog replaced the Planning Commission on 1 January 2015 as a policy think tank.

Understand Plans 7 to 12, Achievements and Shortcomings of Planning, and NITI Aayog

Plans 7 to 12.

Plan	Period	Major objective
Seventh	1985-90	Food, work and productivity
Annual Plans	1990-92	Political change and the 1991 crisis delayed the Eighth
Eighth	1992-97	First plan after liberalisation; human resource development
Ninth	1997-2002	Growth with social justice and equality
Tenth	2002-07	Monitorable targets for growth and human development; aimed at doubling per capita income in ten years
Eleventh	2007-12	Faster and more inclusive growth
Twelfth	2012-17	Faster, more inclusive and sustainable growth (the last Five-Year Plan)

After 1991 the plans became more indicative and the market led investment.

Achievements. Industrial base (steel, power, heavy engineering); food self-sufficiency through the Green Revolution; infrastructure (dams, irrigation, roads, power); institutions of science and technology; self-reliance in many capital goods and a diversified industry.

Shortcomings. Slow growth for several decades; high poverty and unemployment; losses in many public enterprises; the licence-permit system; inequality of income and regions; import substitution that protected firms and kept quality low.

NITI Aayog (National Institution for Transforming India). Replaced the Planning Commission on 1 January 2015. A policy think tank, not a body that allocates funds. The Prime Minister is chairperson; a Governing Council includes the chief ministers; there is a vice-chairperson, full-time members, ex-officio members and a CEO. *Objectives:* cooperative federalism; bottom-up planning; a shared national vision; think tank and knowledge hub; monitoring and evaluation; attention to sections that may not benefit adequately; innovation and entrepreneurship. *Role in practice:* Atal Innovation Mission (2016), Aspirational Districts Programme (2018), SDG India Index.

Rule of 70 target. Doubling per capita income in 10 years needs about 7% growth in PCI.

Plans 7 to 12, Achievements and Shortcomings of Planning, and NITI Aayog: key facts

Doubling target: Years to double = 70 / growth rate | PCI growth needed = 70 / years; Rule of 70.
GDP growth from PCI: GDP growth = PCI growth + Population growth (approx) | Needed for the target; Approximation.
Target gap: Gap = Target growth - Actual growth | In percentage points; Plan evaluation.

How to answer Plans 7 to 12, Achievements and Shortcomings of Planning, and NITI Aayog questions

Place each plan in its context and weigh achievements with shortcomings.

1State the plan, period and main objective.
2Link to the economic situation (liberalisation, inclusive growth).
3For evaluation, list achievements and shortcomings.
4For NITI Aayog, contrast with the Planning Commission.

Plans 7 to 12, Achievements and Shortcomings of Planning, and NITI Aayog in real life

The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Doubling target

Suppose a plan aims to double per capita income in 10 years while population grows 1.5% a year.

What GDP growth is needed?

Try it first, then show the solutionSolution

PCI growth needed = 70 / 10 = 7% a year.
GDP growth = 7 + 1.5 = 8.5% (approx).

Answer: About 8.5% a year.

Memory hook: Rule of 70 and add population growth.

Tricks to remember Plans 7 to 12, Achievements and Shortcomings of Planning, and NITI Aayog

Short memory aids. Say each one aloud once, then use it on a question the same day.

F-H-S-M-I-S
Food, Human resources, Social justice, Monitorable, Inclusive, Sustainable.
Use it when: Plans 7 to 12.
1 January 2015
NITI Aayog date.
Use it when: NITI.
Think tank not funder
NITI Aayog advises; it does not allocate funds.
Use it when: Role.

Plans 7 to 12, Achievements and Shortcomings of Planning, and NITI Aayog: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: NITI Aayog · 1 mark · MCQBoard level

Which statement about NITI Aayog is correct?
(a) it allocates funds to states for five-year plans (b) it is a policy think tank that treats states as partners (c) it was created in 1950 (d) it is headed by the Governor of the RBI

Try it first, then show the solutionSolution

NITI Aayog advises and monitors; it works with states on cooperative federalism.

Answer: (b) it is a policy think tank that treats states as partners

Example 2: Plan objectives · 3 marks · Short answerBoard level

State the major objective of the Eighth, Ninth and Eleventh Plans. (3 marks)

Try it first, then show the solutionSolution

Eighth: human resource development (first plan after liberalisation).
Ninth: growth with social justice and equality.
Eleventh: faster and more inclusive growth.

Answer: Eighth: human resource development; Ninth: growth with social justice; Eleventh: faster and more inclusive growth.

Example 3: Doubling target · 5 marks · Long answerHarder board level

The Tenth Plan aimed at doubling per capita income in ten years. Find the PCI growth rate needed (rule of 70) and the GDP growth rate required if population grows at 1.6% a year. If actual GDP growth was 7.8%, find the actual PCI growth (approximately) and the years to double at that rate. (5 marks)

Try it first, then show the solutionSolution

PCI growth needed = 70 / 10 = 7%.
GDP growth required = 7 + 1.6 = 8.6%.
Actual PCI growth = 7.8 - 1.6 = 6.2%.
Doubling time = 70 / 6.2 = 11.3 years.

Answer: 7% PCI growth, 8.6% GDP growth required; actual PCI growth about 6.2%, doubling in about 11.3 years (illustrative figures).

Example 4: Evaluating planning · 6 marks · Long answerHarder board level

A table shows (hypothetical) data: GDP growth per plan: 3.6%, 4.1%, 2.8%, 4.5%, 5.3% and 6.5% over six consecutive plans; poverty ratios at the start and end: 45% and 40%. Find the average growth of the six plans, the gain over the first plan, and the fall in poverty in percentage points and per cent. (6 marks)

Try it first, then show the solutionSolution

Sum = 3.6 + 4.1 + 2.8 + 4.5 + 5.3 + 6.5 = 26.8; average = 26.8 / 6 = 4.47%.
Gain over the first plan = 6.5 - 3.6 = 2.9 points.
Poverty fall = 5 percentage points = 5 / 45 x 100 = 11.1%.
Growth rose but poverty fell slowly: growth alone did not remove poverty.

Answer: Average growth 4.47%; gain of 2.9 points; poverty fell 5 points (11.1%): growth with limited poverty reduction.

Example 5: Planning Commission versus NITI · 5 marks · Long answerHOTS / competency

Compare the Planning Commission and NITI Aayog on funding role, planning approach and relation to states. Say what gap in the old system NITI Aayog tries to fill. (5 marks)

Try it first, then show the solutionSolution

Planning Commission: allocated funds to states and ministries; top-down five-year plans; states were recipients.
NITI Aayog: policy think tank; no fund allocation; bottom-up planning; states as equal partners (cooperative federalism).
Gap: the old system was seen as rigid and controlled by the Centre, and could not adjust to a market economy.
NITI Aayog offers advice, monitors programmes and encourages innovation.

Answer: The Planning Commission allocated funds top-down; NITI Aayog advises, plans from the bottom up and treats states as partners, filling the gap of rigid central planning.

Where students lose marks in Plans 7 to 12, Achievements and Shortcomings of Planning, and NITI Aayog

The slips examiners see most often, and what to write instead.

Mistake: Saying NITI Aayog allocates funds
Confusing with the Planning Commission.
Wrong working
NITI allocates plan funds
Right working
NITI is a policy think tank
Do this: No fund allocation role.
Usually costs: 1-2 marks.
Mistake: Wrong plan period
Memory.
Wrong working
Ninth Plan 1992-97
Right working
1997-2002
Do this: Learn the table.
Usually costs: 1 mark.
Mistake: Only listing shortcomings
One-sided.
Wrong working
Shortcomings only
Right working
Achievements and shortcomings
Do this: Give both.
Usually costs: 1-2 marks.

Exam tips

Use the table for plans 7 to 12.
Mention 1 January 2015 for NITI Aayog.
Give two achievements and two shortcomings for evaluation.

Practice questions on Plans 7 to 12, Achievements and Shortcomings of Planning, and NITI Aayog

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

Q1 · 1 mark · MCQBoard level
The Twelfth Five-Year Plan (2012-17) aimed at growth that is:
(a) faster, more inclusive and sustainable (b) only industrial (c) only agricultural (d) restricted
Hint
Three adjectives.
Answer
(a) faster, more inclusive and sustainable
Q2 · 4 marks · Short answerBoard level
State any two achievements and two shortcomings of Indian planning. (4 marks)
Hint
Industrial base; poverty.
Answer
Achievements: an industrial base and food self-sufficiency. Shortcomings: persistent poverty and unemployment, and inefficiency due to the licence-permit system.
Q3 · 5 marks · Long answerHarder board level
Explain why the Eighth Plan (1992-97) differed from earlier plans, and compute: if GDP growth targeted was 5.6% and actual was 6.6%, find the actual GDP after 5 years from Rs 6,00,000 crore (1.066^5 = 1.3765) and the extra GDP compared with the target (1.056^5 = 1.3132). (5 marks)
Hint
Compound.
Answer
The Eighth Plan came after liberalisation: more indicative, with a larger private sector and stress on human resource development. Actual GDP = 6,00,000 x 1.3765 = Rs 8,25,900 crore; target = 6,00,000 x 1.3132 = Rs 7,87,920 crore; extra = Rs 37,980 crore.
Q4 · 4 marks · Short answerHarder board level
To double per capita income in 12 years, find the PCI growth required, and the GDP growth if the population grows by 1.2% a year. If the economy instead grows at 6.5%, find PCI growth and the years to double. (4 marks)
Hint
70 / 12.
Answer
PCI growth needed = 70 / 12 = 5.83%; GDP growth = 5.83 + 1.2 = 7.03%. At 6.5% GDP growth, PCI growth = 5.3%; doubling time = 70 / 5.3 = 13.2 years.
Q5 · 4 marks · Short answerHOTS / competency
Some economists say the Five-Year Plans should be revived because markets ignore social goals; others say NITI Aayog's approach is better. Evaluate with two arguments each side. (4 marks)
Hint
Planning vs markets.
Answer
For plans: they coordinate long-term investment and social goals. Against: rigidity and inefficiency, as the licence-permit system showed. NITI Aayog's approach offers strategy, partnership with states and monitoring without command planning.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1.Seventh Plan objective?Show answer
Food, work and productivity.
2.Eighth Plan?Show answer
First after liberalisation; human resource development.
3.Last Five-Year Plan?Show answer
The Twelfth (2012-17).
4.NITI chairperson?Show answer
The Prime Minister.
5.NITI Aayog role?Show answer
Policy think tank.

Plans 7 to 12, Achievements and Shortcomings of Planning, and NITI Aayog: frequently asked questions

Why was the Eighth Plan delayed?

Political change and the 1991 crisis.

Is NITI Aayog a planning body?

It is a think tank; it does not allocate funds.

What is the SDG India Index?

A ranking of states on the Sustainable Development Goals.

What is cooperative federalism?

Centre and states working as partners.