Indian Economy

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. 1 and 2 only
  2. 2 only
  3. 3 only
  4. 1, 2 and 3

Answer

From the Second Five-Year Plan, to save the valuable foreign exchange and give a boost to the domestic industrial sector, the Indian government promoted import substitution.

The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.

In 1969, the Indian government nationalised 14 major private banks - one of the big banks was Bank of India. It was the first time when the financial sector was included as an integral part of the plan.

The correct option is A.