GS PrelimsEconomyEconomic Development2019

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.

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