Seventh Five Year Plan


 
 
Concept Explanation
 

Seventh Five Year Plan

Seventh Five Year Plan (1985-1989): The seventh plan projected 5% overall GDP growth (which was largely achieved and even exceeded) based on increases of 4% and 8% in agricultural and industrial output, respectively. The Seventh Plan marked the comeback of the Indian National Congress Party into power. Stress was laid on improving the productivity level of industries by upgradation of technology.

Period Between 1989-91: The 1989-91 years, was a time of political instability in India and hence no five year plan was implemented. Between 1990 and 1992, there were only Annual Plans. In 1991, India faced a crisis in Foreign Exchange (Forex) reserves, left with reserves of only about $1 billion (US). Thus, under pressure, the country took the risk of reforming the socialist economy. P. V. Narasimha Rao and his finance minister Dr. Manmohan Singh launched India's free market reforms that brought the nearly bankrupt nation back from the edge. It was thc beginning of privatisation and liberalisation in India.

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