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
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC IAS – 2019
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.