The common goals of five year plans in India are: growth, modernisation, self-reliance and equity. Description of these goals are as follows:
i. Growth: It refers to increase in the country’s capacity to produce the output of goods and services within the country. It implies either a larger stock of productive capital, or a larger size of supporting services (like transport, banking, etc.), or an increase in the efficiency of productive capital and services.
ii. Modernisation: Modernisation refers to adoption o f new technology to increase the output of goods and services. It also refers to changes in social outlook such as the recognition that women should have the same rights as men.
iii. Self-reliance: Self reliance means avoiding import of those goods which could be produced in India itself. The first seven five year plans gave importance to self reliance.
iv. Equity: In addition to growth, modernisation and self-reliance, equity is important. The benefits of economic prosperity should reach the poor sections as well instead of being enjoyed by the rich. Every Indian should be able to meet his/her basic needs such as food, house, education and health care; and inequality in the distribution of wealth should be reduced.