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 ✓ UPSC's answer
- (b) 2 only
- (c) 3 only
- (d) 1, 2 and 3
Why the answer is (a)
• Statement 1 is correct: the Second Plan (1956–61), based on the Mahalanobis model, pushed import substitution in basic and capital-goods industries — steel, machinery, heavy engineering.
• Statement 2 is correct: the Fourth Plan (1969–74), following the Hazari and Dutt committee reports, set out to reduce the concentration of wealth and economic power (MRTP Act, 1969; bank nationalisation).
• Statement 3 is wrong: the Fifth Plan (1974–79) focused on poverty removal and self-reliance; the financial sector was not first integrated then — financial-sector reform came with the Eighth Plan after 1991.
• Hence 1 and 2 only, option (a).
Why the other options are wrong
- (b) 2 only
- Statement 1 on the Second Plan is also correct.
- (c) 3 only
- Statement 3 is wrong; statements 1 and 2 are correct.
- (d) 1, 2 and 3
- Statement 3 is wrong.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2019, held on 2 June 2019. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.