With reference to India’s Five-Year Plans, which of the following statements is/are correct?
- From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital goods industries.
- The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
- In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.
Select the correct answer using the code given below.
Detailed Explanation:
Answer: Option 1 — 1 and 2 only
This question tests knowledge of the evolution of India's Five-Year Plans and their changing objectives. Statements 1 and 2 are correct as they accurately reflect the industrial thrust of the Second Plan and the equity focus of the Fourth Plan, while Statement 3 is incorrect regarding the timing of financial sector integration.
✅ Statement 1 – Correct: The Second Five-Year Plan (1956-1961), based on the Mahalanobis Model, emphasized rapid industrialization with a determined thrust on substitution of basic and capital goods industries to build a strong industrial base.
✅ Statement 2 – Correct: The Fourth Five-Year Plan (1969-1974) adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power through measures like nationalization of 14 major banks (1969) and the MRTP Act.
❌ Statement 3 – Incorrect: The financial sector was not included as an integral part of planning during the Fifth Five-Year Plan (1974-1979); it was integrated from the Ninth Five-Year Plan (1997-2002) onwards.
📝 Short Notes: India's Five-Year Plans - Key Features
| Five-Year Plan | Period | Key Focus/Features |
|---|---|---|
| First Plan | 1951-1956 | Agriculture, irrigation, power; based on Harrod-Domar model |
| Second Plan | 1956-1961 | Rapid industrialization; Mahalanobis Model; focus on heavy and basic industries |
| Third Plan | 1961-1966 | Self-reliance and self-sustained growth; faced setbacks due to wars and droughts |
| Fourth Plan | 1969-1974 | Growth with stability; correcting wealth concentration; bank nationalization (1969) |
| Fifth Plan | 1974-1979 | Garibi Hatao; poverty alleviation and employment generation; terminated in 1978 |
| Ninth Plan | 1997-2002 | Financial sector integrated as part of planning; economic reforms consolidation |
Question 1 of 2 Five-Year Plans
Practice PYQ questions from this topic across all years
First question in this topic
The main objective of the 12th Five-Year Plan is