Planning

1. National Investment and Infrastructure Fund is registered under which

National Investment and Infrastructure Fund is registered under which one of the following Acts ?

Companies Act, 2013
RBI Act, 1934
Indian Trusts Act, 1882
Cooperative Societies Act, 1912
This question was previously asked in
UPSC Combined Section Officer – 2024
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The National Investment and Infrastructure Fund (NIIF) is registered under the Indian Trusts Act, 1882. It was established by the Government of India as an investment vehicle for funding infrastructure projects. It operates as a fund manager and manages funds under SEBI (Alternative Investment Funds) Regulations, 2012. NIIF Limited, which is the investment manager of NIIF, is registered under the Companies Act, 2013, but the fund structure itself is often based on a trust or company structure depending on the category. NIIF Master Fund is registered as a Category II Alternative Investment Fund (AIF) under the SEBI AIF Regulations, structured as a trust under the Indian Trusts Act, 1882.
– NIIF is an investment vehicle focused on infrastructure.
– It is structured as a trust.
– Registered under the Indian Trusts Act, 1882.
NIIF manages three funds: Master Fund (Category II AIF), Fund of Funds (Category II AIF), and Strategic Opportunities Fund (Category II AIF). The Master Fund primarily invests in core infrastructure sectors like roads, ports, airports, power, etc.

2. The era of planned development is said to have begun with which of the

The era of planned development is said to have begun with which of the following ?

The People's Plan prepared by M.N. Roy in 1945
The Bombay Plan prepared by J.R.D. Tata and Others in 1944
The Gandhian Plan prepared by S.N. Agarwal in 1944
Five-Year Plan presented by Jawaharlal Nehru in 1951
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UPSC CISF-AC-EXE – 2022
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The era of planned development in India officially began with the launch of the First Five-Year Plan in 1951 under the leadership of Prime Minister Jawaharlal Nehru. The Planning Commission was established in 1950 to formulate these plans.
– The Five-Year Plans became the framework for India’s economic development strategy for over six decades.
– The concept of centralized planning was adopted to guide the allocation of resources and achieve specific socio-economic goals.
While proposals like the Bombay Plan, People’s Plan, and Gandhian Plan existed before 1951, they were not adopted as the official basis for national planning by the government.

3. Which one of the following periods in the history of Indian planning h

Which one of the following periods in the history of Indian planning has not been a period of Annual Plans ?

1966 – 69
1979 – 80
1990 – 92
1992 – 97
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UPSC CISF-AC-EXE – 2017
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The period 1992 – 97 has not been a period of Annual Plans.
Indian Five-Year Plans were sometimes interrupted or delayed, leading to periods of Annual Plans.
– 1966-69: After the Third Five-Year Plan (1961-66), the Fourth Plan was delayed due to economic recession, war, and inflation, leading to three Annual Plans from 1966 to 1969.
– 1979-80: The Janata Government terminated the Fifth Five-Year Plan (1974-79) a year early and attempted a Sixth Plan (1978-83). Political instability led to the collapse of the government, and the new Congress government launched a new Sixth Plan from 1980-85, with 1979-80 effectively becoming an Annual Plan period.
– 1990-92: Due to rapid political changes at the center and the onset of a major economic crisis, the Eighth Five-Year Plan could not start on time in 1990. Two Annual Plans were implemented for 1990-91 and 1991-92.
– 1992-97: This period corresponds to the Eighth Five-Year Plan, which was successfully implemented after the economic reforms were initiated.
Annual Plans are usually implemented when a Five-Year Plan is suspended, delayed, or terminated prematurely due to political or economic reasons. The period 1992-97 marks the tenure of the Eighth Five-Year Plan, which completed its full term.

4. With reference to India’s Five-Year Plans, which of the following stat

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
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UPSC IAS – 2019
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Statement 1: The Second Five-Year Plan (1956-61), based on the Mahalanobis model, laid a strong emphasis on rapid industrialization with a focus on heavy and basic industries and capital goods. This was a deliberate strategy to reduce India’s dependence on imports for these critical items and build a self-reliant industrial base, which is essentially import substitution. Thus, Statement 1 is correct.
Statement 2: The Fourth Five-Year Plan (1969-74) had objectives that included ‘Growth with Stability’ and ‘Progressive achievement of Self-Reliance’. It explicitly aimed at promoting social justice and equality, including reducing the concentration of wealth and economic power, and achieving a more equitable distribution of income. Policies like the nationalization of major banks (1969) and anti-monopoly legislation were aligned with this objective. Thus, Statement 2 is correct.
Statement 3: While the Five-Year Plans always involved planning for resource mobilization, including through the financial system, the statement that the financial sector was included as an integral part of the plan “for the first time” in the Fifth Five-Year Plan (1974-79) is not entirely accurate. Planning for credit allocation to priority sectors and the role of public sector banks in resource mobilization were features of plans from the Second Plan onwards. The significant structural integration and reform of the financial sector as a distinct policy area within the Five-Year Plans became more prominent in the post-reform era, especially from the Eighth Plan onwards. The Fifth Plan focused primarily on poverty eradication and self-reliance amidst economic challenges. Therefore, Statement 3 is incorrect.
The Second and Fourth Five-Year Plans focused on heavy industry/import substitution and reducing economic concentration respectively. The claim about the financial sector’s integration in the Fifth Plan “for the first time” is inaccurate compared to later plans.
India’s Five-Year Plans were the backbone of its economic planning from 1951 to 2014. Each plan had specific objectives reflecting the priorities of the time. The focus shifted over different plans, from agriculture and community development (First) to heavy industry (Second), self-reliance (Third onwards), poverty eradication (Fifth), liberalization and economic reforms (Eighth onwards), etc.

5. With reference to ‘Stand Up India Scheme’, which of the following stat

With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct?

  • 1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
  • 2. It provides for refinance through SIDBI.

Select the correct answer using the code given below.

1 only
2 only
Both 1 and 2
Neither 1 nor 2
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UPSC IAS – 2016
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Both statements are correct with reference to the ‘Stand Up India Scheme’.
– The purpose of the Stand Up India Scheme is indeed to promote entrepreneurship among women and Scheduled Castes (SC) and Scheduled Tribes (ST) categories (Statement 1). It facilitates bank loans for greenfield enterprises in manufacturing, services, or trading sectors.
– The scheme mandates bank branches to facilitate at least one loan between ₹10 lakh and ₹1 crore to an SC or ST borrower and at least one loan to a woman borrower.
– The scheme does provide for refinance through the Small Industries Development Bank of India (SIDBI) (Statement 2). SIDBI is the nodal agency for the Stand Up India Scheme and provides refinance assistance to banks for lending under the scheme.
The scheme was launched on April 5, 2016. It aims to address institutional credit gaps by enabling banks to extend financial support to these underserved sectors of the population, thereby promoting inclusive growth.

6. When the Reserve Bank of India reduces the Statutory Liquidity Ratio b

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

India's GDP growth rate increases drastically
Foreign Institutional Investors may bring more capital into our country
Scheduled Commercial Banks may cut their lending rates
It may drastically reduce the liquidity to the banking system
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UPSC IAS – 2015
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When the Reserve Bank of India reduces the Statutory Liquidity Ratio (SLR), scheduled commercial banks are likely to cut their lending rates.
SLR is the percentage of Net Demand and Time Liabilities (NDTL) that commercial banks must maintain as liquid assets (cash, gold, government securities). Reducing SLR means banks are required to hold a smaller proportion of their deposits in these prescribed liquid assets. This frees up a larger amount of funds that banks can use for lending to the public and businesses.
Increased availability of funds for lending typically leads to increased competition among banks to disburse loans. This increased supply of loanable funds, assuming demand remains constant or increases moderately, puts downward pressure on interest rates, making it more likely for scheduled commercial banks to cut their lending rates. Options A, B, and D are less direct or incorrect consequences. Drastic GDP growth is not guaranteed. FII capital inflows are complex and influenced by many factors. Reducing SLR increases, not reduces, the liquidity available for lending in the banking system.

7. Which of the following are associated with ‘Planning’ in India? The

Which of the following are associated with ‘Planning’ in India?

  1. The Finance Commission
  2. The National Development Council
  3. The Union Ministry of Rural Development
  4. The Union Ministry of Urban Development
  5. The Parliament

Select the correct answer using the code given below.

1, 2 and 5 only
1, 3 and 4 only
2 and 5 only
1, 2, 3, 4 and 5
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UPSC IAS – 2014
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In the context of historical planning in India (primarily through Five Year Plans before the establishment of NITI Aayog), the National Development Council (NDC) and the Parliament were directly involved in the planning process.
Statement 2 is correct: The National Development Council (NDC), composed of the Prime Minister, Union Cabinet Ministers, Chief Ministers of all States, and members of the Planning Commission (now NITI Aayog), was the highest decision-making body for approving Five Year Plans and national development policies.
Statement 5 is correct: The Parliament discusses and approves the Five Year Plans, the Union Budget (which allocates resources based on the plans), and passes legislation related to economic and social development, thus playing a crucial role in the planning framework.
Statement 1 is incorrect: The Finance Commission is a constitutional body (Article 280) whose primary function is to recommend the distribution of tax revenues between the Union and States and grants-in-aid. While its recommendations are vital for resource allocation which supports planned development, the Finance Commission itself was not directly part of the *process* of formulating or approving the Five Year Plans.
Statements 3 and 4 are incorrect: The Union Ministries of Rural Development and Urban Development are implementing agencies. They execute specific schemes and projects aligned with the overall plan objectives but are not considered bodies primarily associated with the *process* of national planning itself.
– Historically, planning in India was centralized under the Planning Commission, approved by the National Development Council (NDC), and subject to parliamentary oversight and approval.
– The Finance Commission deals with fiscal federalism and resource distribution, a distinct role from the planning commission/NDC’s function of drafting and approving development plans.
– Ministries implement planned programmes but are not the apex planning bodies.
With the abolition of the Planning Commission and the establishment of NITI Aayog in 2015, the formal structure of centralized Five Year Plans and the NDC’s role in approving them has changed. NITI Aayog serves as a think tank and policy advisory body. However, this question refers to the historical context of planning in India.

8. The main objective of the 12th Five-Year Plan is

The main objective of the 12th Five-Year Plan is

inclusive growth and poverty reduction
inclusive and sustainable growth
sustainable and inclusive growth to reduce unemployment
faster, sustainable and more inclusive growth
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UPSC IAS – 2014
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The correct option is D. The main objective of the 12th Five-Year Plan (2012-2017) was ‘Faster, Sustainable and More Inclusive Growth’.
The 12th Five-Year Plan was the last of India’s Five-Year Plans. Its central theme and stated objective were “Faster, Sustainable and More Inclusive Growth”. This expands upon the “Inclusive Growth” objective of the 11th Plan by adding the dimensions of speed and sustainability, recognizing the need for not just equity but also environmental considerations and a higher growth rate to achieve development goals.
The 11th Five-Year Plan (2007-2012) had the objective “Towards Faster and More Inclusive Growth”. The 12th Plan built upon this by emphasizing sustainability alongside speed and inclusiveness.

9. The focus of the Second Five Year Plan was :

The focus of the Second Five Year Plan was :

establishment of a self-reliant and self-generating economy with emphasis on agriculture.
rapid industrialization with emphasis on the development of basic and heavy industries.
removal of poverty and attainment of self-reliance.
acceleration of food-grain production and increase in employment opportunities and overall productivity.
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UPSC CAPF – 2023
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India’s Second Five Year Plan (1956-1961), often referred to as the Mahalanobis Plan, placed a strong emphasis on rapid industrialization. The strategy focused on investing heavily in the development of basic and heavy industries, such as steel, coal, fertilizers, and heavy engineering, with the aim of building a self-reliant industrial base.
– The Second Five Year Plan covered the period 1956-1961.
– It was based on the Mahalanobis Model.
– Its primary focus was rapid industrialization.
– Emphasis was laid on basic and heavy industries.
The First Five Year Plan (1951-1956) primarily focused on agriculture, irrigation, and power projects. Poverty removal and self-reliance became explicit objectives in later plans, particularly the Fifth Plan (1974-1979) with the “Garibi Hatao” slogan. Acceleration of food-grain production was a focus during the Green Revolution period, influenced by later plans, although agricultural support continued in the Second Plan alongside industrialization.

10. Before the inception of the First Five year Plan, which among the foll

Before the inception of the First Five year Plan, which among the following Plans were initiated in India ?

  • 1. Bombay Plan
  • 2. Peoples Plan
  • 3. Sarvodaya Plan
  • 4. Gandhian Plan

Select the answer using the code given below :

1 and 2 only
1 and 3 only
3 and 4 only
1, 2, 3 and 4
This question was previously asked in
UPSC NDA-2 – 2024
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Before India’s independence and the formal launch of the First Five Year Plan in 1951, several economic plans were formulated by different groups and individuals. The Bombay Plan was proposed by a group of leading Indian industrialists in 1944. The Gandhian Plan was drafted by S.N. Agarwal in 1944, based on Gandhian principles. The People’s Plan was put forth by M.N. Roy in 1945, advocating for decentralized planning. The Sarvodaya Plan was formulated by Jayaprakash Narayan in 1950, drawing inspiration from Gandhian and Sarvodaya ideals. All four mentioned plans predate the First Five Year Plan of 1951-1956.
Various plans were proposed in India before the official Five Year Plans commenced in 1951, reflecting different economic ideologies and priorities.
These early plans influenced the thinking behind India’s post-independence economic development strategy, which eventually adopted a mixed economy framework with centralized planning initially, influenced by the state-led models.
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