Economic Planning-Rolling Plan (1978 – 1980)

 Economic Planning-Rolling Plan (1978 – 1980)

To develop the economical state of the Indian economy the government of India implemented the Economic Planning-Nehru-Mahalanobis Model in 1955 by the prime miniature Jawaharlal Nehru. This is the second five-year plan after 1951.

The Bharatiya Janata Party rejected the Fifth economic plan and constructed the sixth economic plan; however it was also cancelled by the Congress government in the year of 1980. In 1977, the “Indian planning commission” introduced the Rolling plan against the fifth economic plan, which was not effective in international and domestic economics.

 The major advantage with the rolling plan is always encouraging reassessment of the rolling plan at every level of the Indian annual budget. The Indian government generated a five year plan for financial growth of the country.

The rolling plan consists of three types of plan that was proposed by the Congress government in India. Rolling plan allows adjustments and revision in the Indian economy.

Rolling plan 

Morarji Desai who was the leader of the Bharatiya Janata party got the power as a government in the year 1978 and he was the one who rejected the fifth economic plan. Morarji Desai was generating a Rolling plan as a sixth economic plan and introduced the goal of this plan with better annual revenue. The definition of a Rolling plan in India is to evaluate the performance after the plan was assessed and based on this assessment result, a new plan was generated for next year. Thus, the together targets and allocation are altered during the rolling plan.

The rolling plan has three types of plan; the first one was made for the present year to comprise the budget of this year. The second plan was to fix 3, 4 and 5 numbers of years and it was changing to compare the requirements of the economy in India. The last plan under the Rolling plan is made by the future perspective of the year’s 10, 15 or 20. A rolling plan in the Indian economy is also known as a three-year plan with a medium framework of the health sector based on their needs and it was constructed for facilitating Hospital management. Therefore, it has no fixed time for termination and commencement of that plan.

Overview of the Rolling plan 

Rejection of the fifth economic plan occurred in 1978. Rolling plan was designed by the effects of 1978-1990. This plan has different goals and targets that were amended in various countries as a result of the destabilisation of the economy in India. The main focus of the Rolling plan was to increase the GDP of the country and make a way to get more benefits from the economic policy of India. Growth of the economy mainly denoted the process to increase the production capacity of the country and it mainly came from industry, agriculture and services. The rolling plan mostly focuses on agriculture and hospital sectors for making growth in the country’s economy.

The rolling plan helped to introduce modernization in agricultural sectors for increasing advanced outputs. Modernization refers to advanced technology, inventions and innovations applied in different economic sectors in India and it enhances the chance to see the future in IT industries for improvement in future economics. This was mainly because anything India was independent of, it did not import from other nations. This ensures not only self-reliance but also helps to protect the sovereignty of India.

Background of rolling plan 

Fifth economic planning was almost destroyed by the crisis of oil in India and made a base for upgrading the Rolling plan by Morarji Dessai. After the rejection of the fifth economic planning, the Janata government was forwarded with this Rolling plan in 1978-1983. This plan introduces three new types of plans every year with the existing plan rolled into the new one.

The government will integrate the objectives and targets with these prospective plans in the medium term into an annual plan. It helps to revise their targets up to the deadline. Consisting of three plans under the Rolling plan that broader objectives and goals are listed and that was in consonance with an early plan.

 High inflation was introduced by the Janata government and planned targets were achieved as growth with 5.5 pc and by this planning, overpopulation was controlled by taking several steps. The biggest disadvantage with the Rolling plan was that every year the targets are revised, then it turns into a difficulty for fulfilling the targets that are laid down in the next five years and shows the result of a complex plan. 

Objectives of rolling plan 

The basic objectives of the Rolling plan (1978-1980) are given below,

Economic development: The major objective to introduce the Rolling plan in India was to achieve economic development by increasing the GDP per capita income of the country.

Regional development: Rolling plan targets to decrease disparities in regional development. It was stated that many states like Haryana, Punjab, Maharashtra and Gujarat are economically more developed states than Assam, Orissa, Bihar and Uttar Pradesh in India. Rolling planning in India helps to make several strategies for reducing these types of disparities in India.

Economic Stability: Rolling plan targets to make the competitive markets for increasing economic growth. This means if wholesale prices increase high, then the Indian economy faces several structural defects. The major aim of this plan was to remove such types of defects by their strategies.

Self-sufficiency: India was targeted for self-reliance in several sectors while adding to the growth in export marketing. India was at a high stage of development after the Rolling plan in India.

Sustainable development: The Rolling plan aimed to develop economically in every sector of India and reduce inequality by the reservation, taxation and employment generation of jobs.


The major importance of generating a Rolling plan in India was it has a flexible ability to conquer the rigidity by making plans of projections and revising targets as per changing conditions.  In 1991, the Indian government opened up their economy in international markets with their domestic base.