Q. 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:

  • 1 and 2 only
  • 2 only
  • 3 only
  • 1, 2 and 3

Answer: (a) 1 and 2 only

Notes:
  • The stated objective of the Second five-year plan was rapid industrialisation with particular emphasis on the development of basic and heavy industries – aimed at establishing the Socialistic Pattern of Society.
  • The fourth five-year plan emphasised the reduction of the concentration of incomes, wealth and economic power to achieve social equality and justice.
  • The fifth five-year plan aims at the removal of poverty and the achievement of self-reliance.
Fifth Five Year Plan:
  • Its duration was 1974 to 1978.
  • This plan focused on Garibi Hatao, employment, justice, agricultural production and defence.
  • The Electricity Supply Act was amended in 1975, the Twenty-point programme was launched in 1975, the Minimum Needs Programme (MNP) and the Indian National Highway System was introduced. 
  • Overall this plan was successful which achieved a growth of 4.8% against the target of 4.4%.
  • This plan was terminated in 1978 by the newly elected Morarji Desai government. 

Read here: List of all Five Year Plans in India