With reference to India rsquo s Five Year Plans which of the following statements is are corre...........

Economic Affairs Planning in India

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With reference to India’s Five-Year Plans, which of the following statements is/are correct?

From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries.
The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
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.

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UPSC CSP Previous Year Paper (2019)

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1 and 2 only

2 only

3 only

1, 2 and 3

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Explanation:

The 2^nd FYP was influenced by the Nehru-Mahalanobis plan leaning towards heavy industries. So, there was no substitution (rather emphasis) of capital goods and basic industries. The 2nd FYP aimed for rapid industrialization with particular emphasis on the development of basic and heavy industries so Statement1 is correct.

Fifth Plan (1974-79) was formulated against the backdrop of severe inflationary pressures. The objectives of the plan were to achieve self-reliance and adopt measures for raising the consumption standard of people living below the poverty line. This Plan also gave high priority to bring inflation under control and to achieve stability in the economic situation. It targeted an annual growth rate of 5.5 percent in the national income. There is no mention of Financial Sector here, so option 3 is wrong. We are left with Answer A: only 1 and 2.