In which year was the first five year plan presented in India?

Correct option is D

​The correct answer is (d) 1951

Explanation:

• The First Five-Year Plan (1951-1956) was presented in 1951 and launched on 1st April 1951 by Prime Minister Jawaharlal Nehru.
• The plan focused on agriculture, irrigation, and energy to strengthen the Indian economy post-independence.
• It was based on the Harrod-Domar Model, emphasizing investment and capital formation.
• The plan was successful, achieving a growth rate of 3.6%, which was higher than the target of 2.1%.

Information Booster:

History of Five-Year Plans (FYPs) in India

Introduction

• The idea of economic planning gained traction in the 1940s-50s.
• Industrialists proposed the Bombay Plan (1944) for a planned economy.
• Inspired by the Soviet Union’s first Five-Year Plan (1928) under Joseph Stalin.
• India adopted Five-Year Plans (1951-2017) to boost economic growth, led by the Planning Commission (replaced by NITI Aayog in 2015).

Concept of Five-Year Plans

• A five-year economic blueprint for income and expenditure.
• The budget is divided into:
• Non-plan budget (yearly routine expenses).
• Planned budget (allocated based on priorities for five years).

End of Five-Year Plans

• 2015: Planning Commission replaced by NITI Aayog.
• Five year Planning ends in 2017.
• New Approach :Three-tier planning (3-year action agenda, 7-year strategy, 15-year vision).

Additional Knowledge:

Second Plan (1956-61)

• Led by P.C. Mahalanobis; focused on industrialization.
• Imposed import tariffs to protect domestic industries.
• Achieved 4.27% growth (target: 4.5%).