Fifth Five Year Plan 1974-79

Abstract

The first intimations of the inflationary pressures came in 1972-73, thereafter these pressures gathered strength in 1973-74 and continued unabated right upto September, 1974. During this period, the index rose by 31.8%. Food articles and industrial raw materials accounted for about two-third of the price increase. The prices of machinery, transport equipment and manufactured goods contributed to a little over one-fourth to the overall increase in prices. These pressures were first felt as a result of severe drought conditions in 1972-73, followed by shortages of various essential consumer goods and critical raw-materials and inputs. Shortage of power together with higher international prices of imported inputs and their inadequate availability led to the stagnation of industrial production during 1973-74.