Gadgil Yojana (The Third 5 year Plan)

The Third 5 year Plan is also known as Gadgil Yojana. The aim focus of Gadgil Yojana is on agriculture as well as to enhance the production of wheat. But due to the Indian War in the year 1962, the flow of the economy decreased and shifted the spotlight towards the Defense industry. On May 31 and June 1, 1961, the third plan was approved by the National Development Council. National Development Council also prepared a report on it.


  • The Third 5 Year Plan means that the 1st phase in a system is continuing expansion over the next 15 years or so. 
  • In this period, the economy of India will also increase and become independent as well as self - generating. 
  • This scheme was launched to offer a wide-ranging design of expansion for the country's various portions like natural resources, industrial advance, and agricultural changes in the social structure.
  • This scheme is an incorporated scheme of regional and national development.

The ideology of the Third Five Year Plan

The Third 5 Year Plan was launched to provide more specific content to the social objectives of the Constitution that will symbolize a significant advancement towards their realization. This plan will get a report about the victories as well as failures in the 1st two Plans. It will also set the tasks to be proficient in the viewpoint of growth over the next 15 years and more.

Origin of Third Five Year Plan

The work on the 3rd Five year Plan was started at the end of the year 1958 and was carried out in 3 different significant stages. The initial stage is leading to the pamphlet of Draft Outline early in July 1960, which was integrated thorough studies by running groups set up at the Centre and in the States. The Parliament provided its general permission to the Draft Outline in August 1960. The National Development Council included the Draft Report on the Third Plan and generally approved it on May 31 and June 1, 1961.

Reach of the Third Five Year Plan

  • Under this plan, there are a lot of primary schools set up in rural areas.
  • The Panchayats elections were initiated to fetch democracy to the grass-root level.
  • The states were provided with more expansion responsibilities.
  • There are many state electricity boards, and state secondary education boards are formed under this scheme.
  • Under this scheme, the States were made responsible for secondary as well as higher education.

Approach to the 3rd five-year plan

  • The sample of speculation being planned to make safe an increment in national income of over 5 % per annum. It was also planned to take hold of this rate of improvement during subsequent Plans.
  • This plan was also started to support in food grains and to enhance agricultural production to summon the needs of exports and industry.
  • To expand the primary industries, those are chemical industries, steel, power, and fuel, etc.
  • To make the use of workforce resources ultimately and to guarantee a substantial expansion in service opportunities.

Development of the Third Five Year Plan

The implementation of the Third Plan was run into many difficulties. The first problem in this plan was the Sino-Indian conflict and then, the Indo-Pakistan hostilities in the concluding stage of the program. Inflation, as well as mounting costs, even complicated the situation more. As a result, the development in various fields, particularly in the field of agriculture, irrigation, power, organized industry, as well as housing.

National Income

Under this plan, the national income rose to 20% in the first four years, but there is a decline of 5.6% in the last year of the program. The meagre growth rate is 2.5% of national income that is completely neutralized by the 2.5% rate of growth of population. According to this, per capita income in 1965-66 was the same as in 1960-61.


The most useful field during the Third Plan was Agricultural that provide unpredictable output. There was a plentiful crop in 1964-65 when the output of virtually all crops reached record levels. The aggregate output of agricultural production is 12% higher this year from 1960-61. In the first five year plan the output of all agricultural supplies gone up by 22.2%. In the Second five year Plan, there was a similar increase as the first plan, that is 21.7%.


Under the third five year plan, the progress in the industry field was also excellent. In the first four years under this plan, there is an increment in industrial production about 8-10% annually. Due to the dislocation caused by the Indo-Pakistan conflict, there was a shortage of some raw materials and components, so the growth slowed down to 5.3% at that time. Over the entire time of the plan, the industrial production increased by 37.3%. Same as in the second five-year plan this growth was only 32%.


Under the third five year plan, the average annual growth of power generating capacity was 12.5%. Under this plan, the size of installation was increased from 5.6 million KW to 10.17 million KW. At the starting of the program, the per capita consumption of electricity was 38 K.W.H that was increased to 61.4 K.W.H. at the end of the program.

Transport and Communications

The fund that was allocated for the expansion and improvement of transport facilities in the country is Rs 2,113 crores. Under this plan, the goods and stuff that were carried by the road just doubled as well as the things and products that were carried by the railways increased by 33%. The traffic of passengers by railway is increased by 23% as well as that by road increased by 44%.

Social Services

Under this plan, there is a considerable expansion seen in the educational as well as health facilities. The admission in classes from 1 to 5 increased by 44% and in classes VI-VIII by 57% as well as in classes IX-XI by 46%. Under this plan, 61% of the children of age group 6-14 years were going to school. Medical as well as Health facilities also improved under this plan. There are more than 30 new colleges were established under this scheme as well as a 65% increment in the number of primary health centres.

Frequently Asked Questions

Q: Who provides the final approval to the third five-year plan in India?

National Development Council (NDC) provides the final approval to the third five-year plan in India

Q: From which National Development Council consists of?

National Development Council consists of Members of the Planning Commission and Chief Ministers of the states.

Q: What is another name of the third five-year plan?

The third five-year plan is also known as Gadgil Yojana.