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.
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UPSC Civil Services preparation
- A1 and 2 onlyCorrect
- B2 only
- C3 only
- D1, 2 and 3
Explanation
Let's analyze each statement regarding India's Five-Year Plans:
1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries. This statement is correct. The Second Five-Year Plan (1956-61), often known as the Mahalanobis Plan, laid strong emphasis on the development of heavy industries, particularly capital goods and basic industries, as a strategy for rapid industrialization and import substitution to achieve self-reliance.
2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power. This statement is correct. The Fourth Five-Year Plan (1969-74) had 'Growth with Stability and Progressive Achievement of Self-Reliance' as its objectives. It explicitly aimed at social justice and reduction of disparities, including addressing the concentration of economic power and wealth, which was a concern arising from the growth strategy of previous plans.
3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan. This statement is incorrect. While the financial sector's role and reforms became more prominent in later plans (especially post-1991 liberalization), it has always been an integral component of India's Five-Year Plans from the very beginning, providing the necessary capital and infrastructure for planned development. The Fifth Five-Year Plan (1974-79) primarily focused on 'Garibi Hatao' (poverty eradication) and self-reliance.
Thus, statements 1 and 2 are correct.

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