Which among the following statements with regard to Five Year Plans in India is/are correct?

1. The First and Ninth five year plans accorded high priority to agriculture

2. The Third Plan was based on the Harrod-Domar Model

3. Seventh Plan focused on food, work and productivity

4. The Ninth five year plan empha- sized on massive investments in public sector

Select the answer using the code given below:

Correct option is B

Ans. (B) 1 and 3

Sol.

1. The First Five-Year Plan (1951-1956) and the Ninth Five-Year Plan (1997-2002) prioritized agriculture. The First Plan primarily focused on the development of the primary sector, particularly agriculture and irrigation, due to the food crisis and partition-related issues. The Ninth Plan also emphasized agriculture and rural development to generate employment and reduce poverty.

2. The Third Five-Year Plan (1961-1966) was based on the Feldman-Mahalanobis Model, not the Harrod-Domar Model. The Feldman-Mahalanobis strategy emphasized the development of heavy industries, with the public sector playing a leading role.

3. The Seventh Five-Year Plan (1985-1990) focused on the themes of “food, work, and productivity” to promote self-sufficiency, employment generation, and better utilization of human resources.

4. The Ninth Five-Year Plan focused on agriculture and rural development rather than massive investments in the public sector. The plan aimed at a growth strategy that was employment-oriented and equitable. It encouraged participation from both the public and private sectors but did not emphasize massive public sector investments.

Information Booster:

1. Planning Commission & NITI Aayog:

   • The Planning Commission was established in 1950 under Jawaharlal Nehru to formulate and oversee the Five-Year Plans.
   • It was dissolved in 2015 and replaced by NITI Aayog (National Institution for Transforming India), which now focuses on policy formulation instead of centralized planning.

2. First Five-Year Plan (1951-1956):

   • Based on the Harrod-Domar Model, with an emphasis on agriculture and irrigation.
   • Major projects: Bhakra Nangal Dam, Hirakud Dam, and Damodar Valley Corporation.
   • Achieved a growth rate of 3.6%, exceeding the target of 2.1%.

3. Second Five-Year Plan (1956-1961):

   • Based on the Feldman-Mahalanobis Model, focusing on heavy industries and public sector growth.
   • Laid the foundation for industrialization with the establishment of Bhilai, Rourkela, and Durgapur steel plants.
   • Growth rate achieved: 4.2% (target was 4.5%).

4. Third Five-Year Plan (1961-1966):

   • Focused on self-reliance and heavy industry growth, but suffered due to the Sino-Indian War (1962) and Indo-Pak War (1965).
   • Led to an economic crisis and resulted in the plan's failure.

5. Plan Holiday (1966-1969):

   • Due to the failure of the Third Plan and financial crisis, there was no Five-Year Plan between 1966 and 1969.
   • Instead, the government implemented three annual plans to stabilize the economy.