During which of the following five-year plans was the License Raj introduced?

Correct option is D

The correct answer is (d) Second Five Year Plan

The License Raj in India was introduced during the Second Five Year Plan (1956–1961).

Key Points:

• The License Raj refers to a system of permits, licenses, and regulations that businesses were required to obtain from the government for production, expansion, and trade.
• It was a major part of India’s economic policies following independence, aimed at controlling and regulating industrial growth.
• This system of tight government control and licensing was established during the Second Five Year Plan to foster a planned economy and protect domestic industries.
• The primary aim was to focus on heavy industries and public sector enterprises, which required government regulation and approval for private businesses to operate.

Information booster:

Five-year plan:

• The Five-Year Plans were a series of centralized and integrated national economic programs designed by the Planning Commission of India to develop the country's economy.
• These plans were formulated, executed, and monitored by the Planning Commission from 1951 to 2014, and later by the NITI Aayog from 2015 to 2017
  

NITI Aayog:

• NITI Aayog or the National Institution for Transforming India, established on January 1, 2015, is the policy think tank of the Indian government, replacing the Planning Commission.
• It focuses on inclusive development, cooperative federalism, and sustainable growth.
• The organization is led by the Prime Minister and members include state representatives and experts.
  
• Chairperson: Prime Minister