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 goods 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.
Explanation
Statement 1 is Correct: The Second Five-Year Plan (1956-1961), based on the Mahalanobis Model, shifted the focus of Indian planning toward rapid industrialization. It placed a determined thrust on the development of basic and heavy capital goods industries to build a strong industrial base.
Statement 2 is Correct: The Fourth Five-Year Plan (1969-1974) adopted the objective of "growth with stability" and the "progressive achievement of self-reliance." It specifically aimed at correcting the concentration of wealth and economic power through measures like the nationalization of 14 major commercial banks (1969) and the Monopolies and Restrictive Trade Practices (MRTP) Act.
Statement 3 is Incorrect: The financial sector was not included as an integral part of the planning process during the Fifth Five-Year Plan. It was only from the Ninth Five-Year Plan (1997-2002) onwards that the financial sector was treated as an integral part of the plan to ensure efficient resource allocation.