Question

During first five year Plan the national income was increased by _________.
1. 5%
2. 10%
3. 18%
4. None of the above

Answer 1

Correct Answer - Option 3 : 18%

The correct answer is 18%.

• During the first five-year Plan the national income was increased by 18%.
• It was launched from 1951 to 1956, under the leadership of Jawaharlal Nehru.
• It was based on the Harrod-Domar model with a few modifications.
• Its main focus was on the agricultural development of the country.
• The target growth rate was 2.1% annual gross domestic product (GDP) growth, the achieved growth rate was 3.6% the net domestic product went up by 15%.
• Five Indian Institutes of Technology (IITs) were started as major technical institutions.
• Many irrigation projects were initiated during this period, including the Bhakra, Hirakud, Mettur Dam, and Damodar Valley dams.
• The total planned budget of 2069 crores (2,378 crores later) was allocated to seven broad areas:
  1. Irrigation and Energy (27.2%).
  2. Agriculture and community development (17.4%).
  3. Transport and communications (24%).
  4. Industry (8.6%).
  5. Social services (16.6%).
  6. Rehabilitation of landless farmers (4.1%).
  7. Other sectors and services (2.5%).