Nature of the Indian Economy and Economic Reforms

by Vidyaar
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Q30. Who drafted the First Five-Year Plan for 1951–56 according to this NDA examination question?

[UPSC NDA General Ability Test 2015]

(A) P. C. Mahalanobis

(B) K. N. Raj

(C) J. C. Kumarappa

(D) Jawaharlal Nehru

Answer: (B) K. N. Raj

Explanation: Economist K. N. Raj played a central role in preparing the First Five-Year Plan. The early plan prioritised agriculture and irrigation; P. C. Mahalanobis is associated more prominently with the heavy-industry orientation of the Second Plan.

Q29. In which year did the First Five-Year Plan of India begin?

[WBCS Prelims 2015]

(A) 1947

(B) 1950

(C) 1951

(D) 1955

Answer: (C) 1951

Explanation: India began its First Five-Year Plan in 1951, with the programme continuing until 1956. Agricultural recovery, irrigation and community development were central priorities. The Planning Commission had been established earlier, in 1950, to frame national development plans.

Q28. During which Five-Year Plan did India face wars with China and Pakistan in close succession?

[WBCS Prelims 2015]

(A) Second Plan

(B) Third Plan

(C) Fourth Plan

(D) Fifth Plan

Answer: (B) Third Plan

Explanation: The Third Five-Year Plan covered 1961–66. India faced conflict with China in 1962 and war with Pakistan in 1965, disrupting public finances and development priorities. Economic difficulties contributed to the subsequent sequence of annual plans.

Q27. Large-scale heavy industrialisation became a central planning goal in which Indian Five-Year Plan?

[WBCS Prelims 2015]

(A) First Plan

(B) Second Plan

(C) Third Plan

(D) Fourth Plan

Answer: (B) Second Plan

Explanation: The Second Plan, spanning 1956–61, was shaped by the Mahalanobis approach and prioritised capital goods, steel and major public enterprises. The strategy aimed to build domestic productive capacity, reducing long-run dependence on imported machinery.

Q26. Which years constituted India’s first plan holiday?

[WBCS Prelims 2015]

(A) 1965–67

(B) 1966–68

(C) 1966–69

(D) 1965–98

Answer: (C) 1966–69

Explanation: India followed annual plans from 1966–67 through 1968–69 instead of beginning a Fourth Plan immediately. War, drought and broader economic pressures made stable five-year allocations difficult, while the government continued shorter planning exercises.

Q25. India’s New Agricultural Strategy took shape during which decade?

[WBCS Prelims 2015]

(A) 1950s

(B) 1960s

(C) 1970s

(D) None of these

Answer: (B) 1960s

Explanation: The New Agricultural Strategy emerged in the 1960s through intensive agricultural programmes and later high-yielding seed technology. Expanded irrigation, fertiliser and improved cultivation techniques supported the Green Revolution, albeit unevenly across regions.

Q24. Under which Prime Minister was the abolition of India’s Planning Commission announced?

[UPPSC Civil Service Prelims 2015]

(A) Narendra Modi

(B) Morarji Desai

(C) Atal Bihari Vajpayee

(D) I. K. Gujral

Answer: (A) Narendra Modi

Explanation: Prime Minister Narendra Modi announced the plan to replace the Planning Commission in 2014. NITI Aayog was then formed in January 2015 as a policy think tank placing greater emphasis on cooperative federalism and strategic advice.

Q23. What was the stated overarching objective of the Twelfth Five-Year Plan?

[UPSC CSE Prelims 2014]

(A) Inclusive growth and poverty reduction only

(B) Inclusive and sustainable growth only

(C) Growth limited chiefly to unemployment reduction

(D) Faster, sustainable and more inclusive growth

Answer: (D) Faster, sustainable and more inclusive growth

Explanation: The Twelfth Plan for 2012–17 explicitly framed development around faster, sustainable and more inclusive growth. Its formulation linked the pace of expansion with distributional progress and environmental concerns, rather than growth alone.

Q22. At the time of the Twelfth Five-Year Plan, how much infrastructure investment did the government initially estimate would be required?

[UPPSC Civil Service Prelims 2014]

(A) US$100 billion

(B) US$250 billion

(C) US$500 billion

(D) US$1,000 billion

Answer: (D) US$1,000 billion

Explanation: The initial Twelfth Plan projection for infrastructure investment was around one trillion US dollars, equivalent to US$1,000 billion. Such spending was intended to address transport, power and other capacity bottlenecks constraining economic development.

Q21. What annual growth target was set for agriculture, forestry and fisheries in the Twelfth Five-Year Plan?

[UPPSC Civil Service Prelims 2014]

(A) 3.5%

(B) 4.0%

(C) 5.0%

(D) 5.5%

Answer: (B) 4.0%

Explanation: The Twelfth Plan targeted four percent yearly growth for agriculture and allied activities. Raising farm output and productivity was important to rural incomes, food availability and inclusive growth within the broader national development strategy.

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