Short essay on Sixth Five-Plan (1980-85) of Industrial Development


The Fifth Plan was terminated earlier than schedule and the Sixth Plan was started in 1978 with a new concept of the rolling plan. However, the technique was not successful and the change of the government led to the adoption of a new Sixth Plan for the period of 1980-85.

The Sixth Plan emphasised the objectives of structural diversification, modernisation and self-reli­ance. It laid down special emphasis on the following:

(a) Special emphasis on the expansion of productive capacities both public and private sectors covering a wide range of industries for providing not only consumer goods and consumer durables but also for supporting agricultural and industrial growth through the supply of intermediate and capital goods.


(b) Special attention on the capital goods industry in general and the electronics industry in particular, as these support the growth of a wide range of economic activity.

(c) Encouragement to industries capable of bringing in sizeable foreign exchange earnings through export.

(d) A judicious blend of permitting import of contemporary technology and promoting the devel­opment of indigenous know-how through domestic research and development.

(e) New strategies for development of back­ward regions and prevent concentration of industry in existing metropolitan areas.


The Sixth Plan provided for an outlay of Rs. 13,237 crores in the public sector and Rs. 15,182 crores in the private, corporate and co-operative sectors for industrial and mining projects. Besides, Rs. 4,300 crores was allocated for petroleum and Rs. 2,870 crores for coal industry.

A review of the progress of the industrial growth during the Sixth Plan reveals that as against the target of 7 percent growth in industrial produc­tions. The growth rate achieved was only 5.5 percent. Shortfalls in production were observed in some basic industries such as steel, cement, non-ferrous metals, fertilizers, textiles, jute manufactures, sugar, drugs and pharmaceuticals, commercial vehicles and railway wagons. Industries which exceeded the targets were machine tools, passenger cars, motor cycles and scooters and consumer electronics and communication equipment.

The shortfall in indus­trial production was mainly due to power shortage, prolonged labour unrest insufficient demand (in case of textiles), raw material shortage (in case of jute manufactures, scarcity of coking coal (in case of steel), and inadequate availability of the appropriate quality; increasing material intensity of production, increasing capital output ratios, inadequate attention for technology up gradation and economizing en­ergy consumption.

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