The Third Plan envisaged the maximum rate of investment (a) to strengthen industry, transport and energy, and (b) to accelerate the process o industrial and technological change.
The plan aimed at consolidating the gains of the Second Plan and prepare the economy for a rapid onward march by suitable diversification and establishment of new basic industries. The total outlay was Rs. 3,000 crores (Rs. 1,700 crores for public sector and Rs. 1,300 crores for private sector.
The plan envisaged a big increase in industrial production of iron and steel by 168 per cent, chemicals by 150 per cent and machinery by 143 per cent. It adopted a strategy of speeding up the industrialisation process by strengthening the infrastructure (such as power, transport, etc.) and building up of basic and key industries. Except for the year 1965- 66, industrial output increased steadily at the rate of 7.6 per cent per annum.
The growth of output in two major consumer goods industries-textiles and sugar-was barely 20 per cent and 13 per cent respectively over the 5-year period. Similarly the fertiliser production programme lagged behind schedule.
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As against a target of 10.2 million tones, the production of steel ingots rose to barely 6.2 million tons in 1965-66. However, industries like automobiles, cotton textile, machinery, diesel engines, electric transformers and machine tools, advanced according to set targets as did industries like petroleum products, heavy chemicals, cement, etc.
Mining and extractive industries also showed considerable progress. Intact it was during the Third Plan that a fairly sound base was laid down for future industrial progress.