Question

Which five year plan proposed to make India a 'self-reliant' and 'self-generating' economy?
1. Second five year plan
2. Third five year plan
3. Sixth five year plan
4. Seventh year plan

Answer 1

Correct Answer - Option 2 : Third five year plan

The correct answer is Third five-year plan.

• Though the planned economic development in India began in 1951 with the inception of the First Five Year Plan, theoretical efforts had begun much earlier, even prior to the independence.
• Setting up of National Planning Committee by Indian National Congress in 1938, The Bombay Plan & Gandhian Plan in 1944, Peoples Plan in 1945 (by post-war reconstruction Committee of Indian Trade Union), Sarvodaya Plan in 1950 by Jaiprakash Narayan stepped in this direction.
• Five-Year Plans (FYPs) :
  • Five-Year Plans centralized and integrated national economic programs.
  • Joseph Stalin implemented the first FYP in the Soviet Union in the late 1920s.
  • Most communist states and several capitalist countries subsequently have adopted them.
  • China and India both continue to use FYPs.

Plan
First Plan (1951 - 56)	Target Growth = 2.1% Actual Growth = 3.6%  Harrod-Domar Model Focussed on agriculture Successful plan
Second Plan (1956 - 61)	Target Growth = 4.5% Actual Growth = 4.3% Mahalanobis Plan Rapid industrialization- heavy & basic industries the Socialistic pattern of society
Third Plan (1961 - 66)	Target Growth = 5.6% Actual Growth = 2.8% To make India a 'self-reliant' and self-generating economy.  Failure  Shifted from development to defense & development
Sixth Plan (1980 - 85)	Target Growth = 5.2% Actual Growth = 5.7% Increase in national income, modernization of technology, ensuring a continuous decrease in poverty and unemployment.
Seventh Plan (1985 - 90)	Target Growth = 5.0% Actual Growth = 6.0% Food, work & productivity Very successful