At the time of the First Five Year Plan (1950-51 to 1955-56) the country was confronted with three problems-influx of refugees, severe food shortage resulting into import of food grains, and mounting inflation.

It had also to correct the disequilibrium in the economy caused by the Second World War and the Partition of the country. Accord­ingly, the First Plan emphasized as its immediate objectives the rehabilitation of refugees, rapid agri­cultural development so as to achieve food self- sufficiency in the shortest possible time and control of inflation. Simultaneously, the Plan attempted a process of all-round balanced development which could ensure a rising national income and a steady improvement in the living standards over a period of time.

The Plan accorded the highest priority to agriculture including irrigation and power projects which collected an outlay of Rs. 2,069 crore (later raised to Rs. 2,378 crore) in the public sector (about 44.6 per cent of the total Plan outlay). The general growth rate during the Plan was 3.7 per cent per annum against the target of 1.2 per cent.