With reference to India's Five-Year Plans, which of the following statements is/are correct?
1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries.
2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
3. 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.
A
1 and 2 only
B
2 only
C
3 only
D
1, 2 and 3
Correct Answer: Option A
Explanation
1. Statement 1 is correct. The Second Five-Year Plan (1956-61), based on the Mahalanobis model, emphasized rapid industrialization focusing on developing basic and capital good industries. This strategy inherently involved a determined thrust towards substitution of imports for these goods.
2. Statement 2 is correct. The Fourth Five-Year Plan (1969-74) had 'Growth with Stability' and 'Progressive Achievement of Self-Reliance' as its major objectives. It explicitly aimed at correcting inequalities and increased concentration of wealth and economic power.
3. Statement 3 is incorrect. The financial sector, dealing with resource mobilization and allocation, has always been an integral part of India's Five-Year Plans since the beginning. It was not included for the first time in the Fifth Five-Year Plan.
4. Therefore, statements 1 and 2 are correct.