Five Year Plans — Set 1

Correct Answer: D. Harrod-Domar Model

• **Harrod-Domar Model** = The First Five Year Plan (1951-56) was based on the Harrod-Domar model, which emphasized the role of savings and investment in achieving economic growth. • **3.6% growth rate** — The plan exceeded its 2.1% target by achieving 3.6% growth, making it one of India's most successful plans relative to target. • 💡 Wrong-option analysis: Mahalanobis Model: this model was adopted in the Second Five Year Plan for heavy industrialisation; Solow Model: this neoclassical growth model was not used in Indian planning; Lewis Model: this is a labour-surplus development model, not the basis of the First Plan.

Correct Answer: A. Fifth Five Year Plan

• **Fifth Five Year Plan** = The 'Garibi Hatao' (Remove Poverty) slogan was a core part of the Fifth Five Year Plan (1974-79) initiated by Indira Gandhi. • **Terminated in 1978** — The Janata Government terminated the Fifth Plan one year ahead of schedule in 1978 and introduced the Rolling Plan concept. • 💡 Wrong-option analysis: Third Five Year Plan: it was severely disrupted by the 1962 and 1965 wars, not associated with 'Garibi Hatao'; Sixth Five Year Plan: it focused on IRDP-based poverty alleviation, not the 'Garibi Hatao' slogan; Fourth Five Year Plan: it is known for bank nationalisation in 1969.

Correct Answer: C. Second Five Year Plan

• **Second Five Year Plan** = The Second Five Year Plan (1956-61) was based on the Mahalanobis Model which advocated for rapid industrialisation through heavy capital goods industries. • **Steel plants at Bhilai, Durgapur, Rourkela** — It shifted focus from agriculture to building major public-sector steel plants in collaboration with USSR, UK, and West Germany. • 💡 Wrong-option analysis: Third Five Year Plan: it aimed at self-reliant growth and was disrupted by wars; Fourth Five Year Plan: it focused on stability with growth after the Plan Holiday; First Five Year Plan: it was based on the Harrod-Domar model and focused on agriculture.

Correct Answer: A. 1966-1969

• **1966-1969** = The 'Plan Holiday' occurred between 1966 and 1969 when three annual plans were implemented instead of a five-year plan. • **Wars and drought as cause** — The 1962 Sino-Indian War, the 1965 Indo-Pakistani War, and devastating droughts made a full five-year plan unviable. • 💡 Wrong-option analysis: 1978-1980: this was the Rolling Plan period introduced after the Fifth Plan was terminated; 1961-1964: this falls within the Third Five Year Plan period; 1990-1992: this period saw two Annual Plans due to the balance of payments crisis, separate from the Plan Holiday.

Correct Answer: A. Faster, More Inclusive and Sustainable Growth

• **Faster, More Inclusive and Sustainable Growth** = The Twelfth Five Year Plan (2012-2017) set 'Faster, More Inclusive and Sustainable Growth' as its main goal. • **2012-2017 (India's last plan)** — It was the final five-year plan before NITI Aayog replaced the Planning Commission in January 2015. • 💡 Wrong-option analysis: Self-reliance and Growth: this was a broad objective of the First Five Year Plan; Growth with Social Justice: this was the theme of the Ninth Five Year Plan; Removal of Poverty and Unemployment: this was a broad goal of the Fifth Five Year Plan.

Correct Answer: B. National Development Council

• **National Development Council** = The National Development Council (NDC) was the apex body that gave final approval to draft five-year plans before its dissolution. • **Established 6 August 1952** — It comprised the Prime Minister, Union Cabinet Ministers, and Chief Ministers of all states as members. • 💡 Wrong-option analysis: Finance Commission: it recommends revenue sharing between Centre and states and does not approve plans; Planning Commission: it drafted the plans but final approval rested with the NDC; NITI Aayog: established in 2015, it replaced the Planning Commission and does not approve five-year plans.

Correct Answer: D. Janata Government

• **Janata Government** = The Janata Government introduced the Rolling Plan concept in 1978 after terminating the Fifth Five Year Plan one year early. • **Ended when Congress returned in 1980** — The Rolling Plan system was abandoned when the Congress government returned to power in January 1980 under Indira Gandhi. • 💡 Wrong-option analysis: Congress Government: Congress abolished the Rolling Plan, it did not introduce it; NDA Government: NDA came to power in 1998 and has no connection to the Rolling Plan; United Front Government: this coalition came to power in 1996, long after the Rolling Plan era.

Correct Answer: B. Fourth Plan

• **Fourth Plan** = Fourteen major commercial banks were nationalised in July 1969 during the Fourth Five Year Plan (1969-74). • **₹50 crore deposit threshold** — Banks with deposits of ₹50 crore or more were nationalised to expand banking services to rural and underserved areas. • 💡 Wrong-option analysis: Fifth Plan: the Fifth Plan focused on Garibi Hatao and poverty alleviation, not bank nationalisation; Third Plan: the Third Plan was disrupted by wars and is not associated with bank nationalisation; Sixth Plan: the Sixth Plan launched IRDP and anti-poverty programmes.

Correct Answer: A. Ninth Five Year Plan

• **Ninth Five Year Plan** = The Ninth Five Year Plan (1997-2002) focused on 'Growth with Social Justice and Equality' to balance economic development with social welfare. • **1997-2002 period** — The plan was overseen initially by the United Front government and later by the NDA government. • 💡 Wrong-option analysis: Eleventh Five Year Plan: its theme was 'Towards Faster and More Inclusive Growth'; Eighth Five Year Plan: it focused on economic liberalisation and human resource development; Tenth Five Year Plan: its focus was doubling per capita income in 10 years.

Correct Answer: A. 1950

• **1950** = The Planning Commission was established in March 1950 by an executive resolution of the Government of India. • **Non-statutory, PM-chaired body** — It was a non-constitutional and non-statutory body chaired by the Prime Minister, with the Deputy Chairman as functional head. • 💡 Wrong-option analysis: 1948: the Planning Commission was not established in 1948; 1947: 1947 is India's independence year, not the year the Planning Commission was set up; 1952: the National Development Council (NDC) was established in 1952, not the Planning Commission.