Consider the following statements:
A) Failure of Third Plan that of the devaluation of the rupee( to boost exports) along with inflationary recession led to the postponement of the Fourth Five year Plan.
B) Three Annual Plans were introduced instead of the Fifth five Five-Year Plan.
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Correct option is C

The correct answer is (c) Only A is true

Explanation:

Statement A:

"Failure of Third Plan that of the devaluation of rupee (to boost exports) along with inflationary recession led to postponement of Fourth Five Year Plan."

• The Third Five-Year Plan (1961–1966) failed due to several factors:
• India-China War (1962) and India-Pakistan War (1965)
• Severe droughts leading to food shortages
• Rising inflation and balance of payment crisis
• In 1966, India devalued the rupee to improve export competitiveness.
• These crises made it impractical to launch the Fourth Plan immediately, leading to a postponement and the introduction of Annual Plans (1966–1969).

Statement B:

"Three Annual Plans were introduced instead of the Fifth five year plan."

• The three Annual Plans (1966–1969) were introduced after the Third Plan and before the Fourth Plan, not the Fifth.
• The Fifth Plan came after the Fourth Plan, and it started in 1974 (officially 1974–79, although it was later terminated in 1978 by the Janata government).

Information Booster:

• Third Five-Year Plan (1961–1966):
• Focus: Agriculture and industry
• Failed due to wars, droughts, and economic instability
• Annual Plans (1966–1969):
• Also known as Plan Holidays
• Focused on maintaining the economy while tackling immediate challenges
• Devaluation of Rupee (1966):
• Devalued from ₹4.76 to ₹7.50 per US dollar
• Intended to boost exports and receive foreign aid

Five Year Plans in India:

• Concept: Based on the Soviet model, Five-Year Plans (FYPs) were centralized and planned development programs aimed at economic growth and social justice.
• Introduced by: Jawaharlal Nehru, under the Planning Commission (established in 1950).
• Total Plans: 12 Five-Year Plans were implemented from 1951 to 2017.