The Third Five-Year Plan (1961-1966)

The Third Five-Year Plan (1961-1966)

The Third Five-Year Plan, marked by a significant fall short of its target growth rate, was a turbulent period in India's economic development. It grappled with internal and external challenges while attempting to shift its focus towards self-reliance and social development.  Factors Hindering Growth: Actual growth rate of 2.72% : Falling short of the ambitious target of 5.6%, the plan's performance was hampered by various factors. Excess utilization of internal resources : The ambitious goals placed immense pressure on India's resources, leading to potential exhaustion and hindering future potential. Reliance on foreign aid : Despite aiming for self-reliance, the plan still relied heavily on foreign aid for industrialization, making it vulnerable to external changes and pressures. Debt burden of previous plans : Obligations from earlier plans weighed on the financial resources available for new investments and initiatives. Financial crisis : Internal economic instability and mismana…