GS PrelimsEconomyLiberalisation Privatisation Globalisation (LPG)1996

The Eighth Five-Year Plan is different from the earlier ones. The critical difference lies in the fact that

A

it has a considerably larger outlay compared to the earlier plans

B

it has a major thrust on agricultural and rural development

C

considerable emphasis is placed on infrastructure growth

D

industrial licensing has been abolished

Correct Answer: Option D

Explanation

1. The question asks for the critical difference between the Eighth Five-Year Plan (1992-1997) and earlier plans. 2. The Eighth Five-Year Plan was formulated in the backdrop of the significant economic reforms initiated in 1991. 3. A key aspect of these reforms was liberalization, which involved dismantling the complex system of industrial licensing (often referred to as the 'License Raj'). 4. While factors like outlay size, focus on agriculture, or infrastructure were part of planning discourse across multiple plans, the shift towards a market-oriented economy and the consequent abolition of widespread industrial licensing marked a fundamental departure from the interventionist approach of earlier plans. This reflects the move towards indicative planning.

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