Abstract
By the spring of 1966, it was abundantly clear in New Delhi that the Third Five Year Plan was a failure. Over the five year period (1961–66), the rate of increase in national income was less than half the projected level. Per capita income showed no increase at all. At the same time, prices for all commodities rose by over one half. The price index for foodgrains climbed by more than 56 per cent. By 1966, food shortages were so severe that some thirty million persons in major cities and towns were placed under statutory rationing. Another two hundred million—over one-third the population—were brought under partial rationing schemes. Even so, the general price index rose by another 38 per cent in 1967. Once again, foodgrains took the lead with a price increase of 44 per cent.
