2008 · Paper IV · 10 marksFrequently asked

Explain the important objectives of the 10th Five Year Plan.

In short

The 10th Five Year Plan (2002-2007) aimed for 8% annual GDP growth to double per capita income within a decade and create 50 million jobs. It also sought to cut poverty by 5 percentage points by 2007 and to decentralise planning through states and Panchayati Raj Institutions.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
The 10th Five Year Plan (2002-2007) aimed to consolidate India’s higher growth trajectory post-economic reforms, focusing on inclusive development through economic expansion, employment, and social justice.
Institutional Framework and Strategic Priorities
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Growth and Income Doubling

Targeted 8% GDP growth to double per capita income, enhancing productive capacity and living standards.

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Employment Generation

Emphasized creating 50 million jobs, especially in labour-intensive sectors, to leverage the demographic dividend.

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Poverty Reduction and Social Equity

Aimed to cut the poverty ratio of about 26% by 5 percentage points by 2007, ensuring growth benefits reached poor and marginalized groups.

•

Decentralized Planning and Governance

Advocated greater Panchayati Raj and state involvement for cooperative federalism and accountability.

Implementation Challenges and Outcomes
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Growth Performance

Achieved 7.6% GDP growth, led by industry and services; agriculture showed modest gains amid rural challenges.

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Poverty and Employment Gaps

Poverty reduction lagged due to regional disparities and skill mismatches; employment growth was insufficient.

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Fiscal Consolidation

Focused on reducing revenue deficits via tax reforms and subsidy rationalization for sustainable investment.

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Social Indicators

Literacy and gender gaps improved; rural infrastructure lagged, especially in Rayalaseema.

Way Forward
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Skill Development

Targeted training aligned with industry needs to reduce structural unemployment.

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Rural Infrastructure

Irrigation and rural connectivity, as under Bharat Nirman (2005), to boost agriculture, especially in Rayalaseema.

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Inclusive Growth Policies

Wider safety nets, as NREGA (2005) began to provide, including in Andhra Pradesh.

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Governance

Empower local bodies with fiscal autonomy for better service delivery.

Conclusion
The Plan laid a foundation for balanced growth and social justice, advancing SDG 8 and India’s vision for equitable prosperity by 2047.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: 10th Plan: targets and outcomes. 10th Plan: targets and outcomes. Comparison of Target and Outcome
Diagram: 10th Plan: targets and outcomes

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Major Challenges of Indian Economy26 questions

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