The First Five Year Plan (1951-1956):

The draft of the first five year plan and the actual plan document was released in December 1951. People from all walks of life-academics, journalists, government and private sector employees, industrialists, farmers, politicians etc. discussed and debated the documents extensively.

Based on the Harrod-Domar Model, the first five year plan (1951-56) sought to get economy out of the vicious cycle of poverty. The prominent young economist K.N. Raj that India should "hasten slowly" for the first two decades as a fast rate of development might endanger democracy. The First Five Year Plan addressed mainly the agrarian sector including investment in dams and irrigation. Due to the bitter Partition, Agricultural sector was hit hardest and needed urgent attention. Huge allocations were made for "Modern Temples of India" like the Bhakhra Nangal Dam. The First Five Year Plan also focused on land reform for the country's development. One of the basic aims of the planners was to raise the level of national income. Basic level of spending was very low in the 1950's. Hence planners sought to push savings up. Due to the efforts of the planners, savings did rise up and that rise continued till the Third Five Year Plan, but later it declined sharply.