Indian Economy › Economic Planning & Five-Year Plans – UPSC Prelims PYQs

19 questions · 1995–2019 · answers as per the UPSC key

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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.

(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
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Answer: (a) 1 and 2 only

Which of the following has/have occurred in India after its liberalization of economic policies in 1991 ?

  1. Share of agriculture in GDP increased enormously.
  2. Share of India's exports in world trade increased.
  3. FDI inflows increased.
  4. India's foreign exchange reserves increased enormously.

Select the correct answer using the codes given below :

(a) 1 and 4 only
(b) 2, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
Show answer
Answer: (b) 2, 3 and 4 only

The Government of India has established NITI Aayog to replace the

(a) Human Rights Commission
(b) Finance Commission
(c) Law Commission
(d) Planning Commission
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Answer: (d) Planning Commission

The main objective of the 12th Five-Year Plan is

(a) inclusive growth and poverty reduction
(b) inclusive and sustainable growth
(c) sustainable and inclusive growth to reduce unemployment
(d) faster, sustainable and more inclusive growth
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Answer: (d) faster, sustainable and more inclusive growth

Which of the following are associated with 'Planning' in India?

  1. The Finance Commission
  2. The National Development Council
  3. The Union Ministry of Rural Development
  4. The Union Ministry of Urban Development
  5. The Parliament

Select the correct answer using the code given below.

(a) 1, 2 and 5 only
(b) 1, 3 and 4 only
(c) 2 and 5 only
(d) 1, 2, 3, 4 and 5
Show answer
Answer: (b) 1, 3 and 4 only

Which of the following can aid in furthering the Government's objective of inclusive growth?

  1. Promoting Self-Help Groups
  2. Promoting Micro, Small and Medium Enterprises
  3. Implementing the Right to Education Act

Select the correct answer using the codes given below :

(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Show answer
Answer: (d) 1, 2 and 3

Inclusive growth as enunciated in the Eleventh Five Year Plan does NOT include one of the following:

(a) Reduction of poverty
(b) Extension of employment opportunities
(c) Strengthening of capital market
(d) Reduction of gender inequality
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Answer: (c) Strengthening of capital market

In the context of India’s Five Year Plans, a shift in the pattern of industrialization, with lower emphasis on heavy industries and more on infrastructure begins in

(a) Fourth Plan
(b) Sixth Plan
(c) Eighth Plan
(d) Tenth Plan
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Answer: (b) Sixth Plan

During which Five Year Plan was the Emergency clamped, new elections took place and the Janata Party was elected ?

(a) Third
(b) Fourth
(c) Fifth
(d) Sixth
Show answer
Answer: (c) Fifth

Consider the following statements regarding Indian Planning :

  1. The Second Five-Year Plan emphasised on the establishment of heavy industries.
  2. The Third Five-Year Plan introduced the concept of import substitution as a strategy for industrialisation.

Which of the statements given above is/are correct ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (a) 1 only

Consider the following statements:

  1. The highest deciding body for planning in India is the Planning Commission of India.
  2. The Secretary of the Planning Commission of India is also the Secretary of the National Development Council.
  3. The Constitution includes economic and social planning in the Concurrent List in the Seventh Schedule of the Constitution of India.

Which of the statements given above is/are correct?

(a) 1 and 2
(b) 2 and 3
(c) 2 only
(d) 3 only
Show answer
Answer: (b) 2 and 3

A Five Year Plan in India is finally approved by the

(a) Union Cabinet
(b) President on the advice of the Prime Minister
(c) Planning Commission
(d) National Development Council
Show answer
Answer: (d) National Development Council

The planning process in the industrial sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period.

Which one of the following is true in this regard?

(a) With the advent of liberalisation, industrial investments/development have largely been placed within the domain of private and multinational sectors
(b) With markets assuming a central place, the role of central planning in many sectors has been rendered redundant
(c) The focus of planning has shifted to sectors like human resource development, infrastructure, population control and welfare
(d) The nation’s priorities have shifted away from industrial development to rural development
Show answer
Answer: (b) With markets assuming a central place, the role of central planning in many sectors has been rendered redundant

The Sixth and the Eighth Five-Year Plans covered the period 1980-85 and 1992-97 respectively. The Seventh Five-Year Plan covered the period

(a) 1987-92
(b) 1986-91
(c) 1985-90
(d) 1988-94
Show answer
Answer: (c) 1985-90

Which one of the following is correct regarding stabilization and structural adjustment as two components of the new economic policy adopted in India?

(a) Stabilization is a gradual, multi-step process while structural adjustment is a quick adaptation process
(b) Structural adjustment is a gradual, multi-step process, while stabilization is a quick adaptation process
(c) Stabilization and structural adjustment are very similar and complementary policies. It is difficult to separate one from the other
(d) Stabilization mainly deals with a set of policies which are to be implemented by the Central Government while structural adjustment is to be set in motion by the State Governments
Show answer
Answer: (b) Structural adjustment is a gradual, multi-step process, while stabilization is a quick adaptation process

The Eighth Five-Year Plan is different from the earlier ones. The critical difference lies in the fact that

(a) it has a considerably larger outlay compared to the earlier plans
(b) it has a major thrust on agricultural and rural development
(c) considerable emphasis is placed on infrastructure growth
(d) industrial licensing has been abolished
Show answer
Answer: (d) industrial licensing has been abolished

Which one of the following Five-Year Plans recognised human development as the core of all developmental efforts?

(a) The Third Five-Year Plan
(b) The Fifth Five-Year Plan
(c) The Sixth Five-Year Plan
(d) The Eighth Five-Year Plan
Show answer
Answer: (d) The Eighth Five-Year Plan

What is the annual growth rate aimed at in the Eighth Five-Year Plan?

(a) 5.6%
(b) 6%
(c) 6.5%
(d) 7%
Show answer
Answer: (a) 5.6%

The largest source of financing the public sector outlay of the Eighth Five-Year Plan comes from

(a) balance from current revenue
(b) contribution of public enterprises
(c) government borrowings
(d) deficit financing
Show answer
Answer: (d) deficit financing