The Third Five-Year Plan started in 1961. The main aim of this plan was to make India self-reliant in food production and strengthen agriculture, especially the production of wheat.
Main Focus of the Plan
The plan focused on:
- Increasing agricultural production
- Expanding irrigation facilities
- Improving overall economic growth
At the beginning, the plan aimed for balanced development, but many unexpected events changed its direction.
Impact of Wars and Drought
During this period, India faced serious challenges:
- 1962 war with China (Sino-Indian War)
- 1965 war with Pakistan
- Severe drought in 1964–65
Because of these problems:
- The focus shifted from development to defence and security
- Government spending increased on the army
- Food shortage became a major issue
- Prices started rising (inflation)
Agricultural and Industrial Development
Despite challenges, some progress was made:
- Construction of large dams continued
- Many cement and fertilizer plants were set up
- Punjab became a major producer of wheat, which later supported the Green Revolution
Social and Administrative Reforms
The plan also introduced important changes in governance and society:
- Many primary schools were opened in rural areas
- Panchayat elections were started to strengthen democracy at the local level
- States were given more responsibility for development
New institutions were also created:
- State Electricity Boards for power supply
- State Secondary Education Boards for education
- State Road Transport Corporations for transport services
States were made responsible for:
- Secondary and higher education
- Road development
Economic Crisis and Policy Changes
India faced financial difficulties during this period:
- The country borrowed money from the International Monetary Fund (IMF) for the first time
- The Indian rupee was devalued in 1966 to deal with economic problems
Growth Performance
The plan had set a target growth rate of 5.6%, but the actual growth achieved was only 2.4%, which was much lower than expected.
Conclusion
In simple terms, the Third Five-Year Plan started with a focus on agriculture and self-sufficiency, but wars, drought, and economic problems disrupted its success. As a result, the plan could not achieve its targets, but it still helped in strengthening agriculture, local governance, and basic infrastructure.