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

APEDIA

UPSC Prelims

2019 • 02 Jun, 2019 • Paper-1

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.

Correct Answer

1 and 2 only

Statement 1 Analysis: Correct. The Second Five-Year Plan (based on the Mahalanobis model) decisively shifted the macroeconomic focus from agriculture towards ra......

💡 Analysis & Explanation

Statement 1 Analysis ▼

Correct. The Second Five-Year Plan (based on the Mahalanobis model) decisively shifted the macroeconomic focus from agriculture towards rapid industrialization, laying immense emphasis on heavy and capital goods industries as a crucial strategy for import substitution and long-term self-reliance.

Statement 2 Analysis ▼

Correct. Influenced by the Monopolies Inquiry Commission report, the Fourth Five-Year Plan acknowledged the flaws of previous trickle-down approaches and actively adopted the twin objectives of promoting growth with stability and reducing the alarming concentration of economic power and wealth.

Statement 3 Analysis ▼

Incorrect. The integration and comprehensive overhaul of the financial sector as an integral part of economic planning became a prominent feature much later, particularly starting from the Ninth Five-Year Plan in the post-liberalization era, not the Fifth Plan.

Conclusion ▼

Statements 1 and 2 are historically accurate.

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