Economic Planning & Five Year Plans - Part 2 - Topic Guide and MCQs

1. The Second Five Year Plan was based on the:

   1. Mahalanobis model
   2. Harrod–Domar model
   3. Chakravarty model
   4. Gunnar Myrdal model
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   Answer: (A) Mahalanobis model

   Explanation: The Second Plan was based on the Mahalanobis model. The other options are incorrect because Harrod–Domar was used for the First Plan, Chakravarty for the Third, and Myrdal is associated with the Rolling Plan. Heavy industries received priority in the Second Plan.

2. The Second Five Year Plan gave priority to:

   1. Agriculture
   2. Family planning
   3. Inclusive growth
   4. Heavy industries
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   Answer: (D) Heavy industries

   Explanation: The Second Plan gave priority to heavy industries. The other options are incorrect because agriculture was the First Plan priority, family planning featured in the Sixth, and inclusive growth was an Eleventh Plan theme. The Industrial Policy of 1956 accepted a socialistic pattern of society as the goal.

3. Which one of the following steel plant–foreign assistance pairs is NOT correctly matched?

   1. Bhilai — USSR
   2. Durgapur — Britain
   3. Rourkela — Germany
   4. Bokaro — Britain
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   Answer: (D) Bokaro — Britain

   Explanation: Bokaro Steel Plant was set up with USSR help, so “Bokaro — Britain” is not correctly matched. The other options are incorrect because Bhilai–USSR, Durgapur–Britain and Rourkela–Germany are correct pairings. Bhilai and Rourkela both started production in 1959.

4. Industrial Policy 1956 accepted which goal?

   1. Socialistic pattern of society
   2. Growth facilitator state
   3. Faster and sustainable growth
   4. New agricultural strategy
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   Answer: (A) Socialistic pattern of society

   Explanation: Industrial Policy 1956 accepted a socialistic pattern of society as the goal. The other options are incorrect because growth facilitator belongs to the Ninth Plan shift, faster sustainable growth to the Twelfth Plan theme, and new agricultural strategy to the first plan holiday. The Second Plan’s priority was heavy industry.

5. The Third Five Year Plan was based on the:

   1. Mahalanobis model
   2. Harrod–Domar model
   3. Ashok Rudra–Alan Manne model
   4. Chakravarty model
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   Answer: (D) Chakravarty model

   Explanation: The Third Plan was based on the Chakravarty model. The other options are incorrect because Mahalanobis was the Second Plan model, Harrod–Domar the First, and Ashok Rudra–Alan Manne the Fourth. The Third Plan failed due to wars and droughts.

6. Assertion (A): The Third Five Year Plan was a failure.Reason (R): It was affected by wars and droughts.

   1. Both A and R are true and R is the correct explanation of A
   2. Both A and R are true but R is not the correct explanation of A
   3. A is true but R is false
   4. A is false but R is true
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   Answer: (A) Both A and R are true and R is the correct explanation of A

   Explanation: Both A and R are true, and wars and droughts explain why the Third Plan failed. The other options are incorrect because the remaining choices either deny a true statement or break the cause-and-effect link. Despite failure, panchayat elections were started during the Third Plan.

7. Which development was started during the Third Plan despite its failure?

   1. National Highway system
   2. Panchayat elections
   3. Family planning
   4. PURA
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   Answer: (B) Panchayat elections

   Explanation: Panchayat elections were started during the Third Plan, although the plan failed. The other options are incorrect because the National Highway system came in the Fifth Plan, family planning in the Sixth, and PURA in the Tenth. The Green Revolution was also introduced in the Third Plan.

8. Bokaro Steel Plant was set up with the help of:

   1. Britain
   2. Germany
   3. USSR
   4. Japan
   Show answer

   Answer: (C) USSR

   Explanation: Bokaro Steel Plant was set up with USSR help. The other options are incorrect because Britain is linked with Durgapur, Germany with Rourkela, and Japan is not given for Bokaro. Bokaro is associated with the Third Plan.

9. The Green Revolution was introduced during the:

   1. First Plan
   2. Annual Plans / Plan Holiday (1966–69)
   3. Third Plan
   4. Fourth Plan
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   Answer: (B) Annual Plans / Plan Holiday (1966–69)

   Explanation: The Green Revolution (the new agricultural strategy based on HYV seeds, fertilisers and irrigation) was introduced in 1966, during the Annual Plans or Plan Holiday (1966–69) that followed the Third Plan. Its gains were consolidated during the Fourth Plan.

10. The first Plan Holiday, consisting of three annual plans, covered:

    1. 1961–1964
    2. 1964–1966
    3. 1966–1969
    4. 1969–1971
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    Answer: (C) 1966–1969

    Explanation: The first Plan Holiday covered 1966–1969 and consisted of three annual plans. The other options are incorrect because the other periods do not match the first plan holiday. A new agricultural strategy was adopted during this holiday.

11. Which of the following formed part of the new agricultural strategy during the first Plan Holiday?1.High-yielding variety seeds2.Extensive use of fertilisers3.Irrigation and soil conservationSelect the correct answer using the code below.

    1. 1 and 2 only
    2. 2 and 3 only
    3. 1 and 3 only
    4. 1, 2 and 3
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    Answer: (D) 1, 2 and 3

    Explanation: All three—high-yielding seeds, extensive fertiliser use, and irrigation with soil conservation—formed the new agricultural strategy. The other options are incorrect because each partial code leaves out one element of the strategy. This strategy is listed under the 1966–1969 annual-plan period.

12. The Fourth Five Year Plan was based on the model of:

    1. Ashok Rudra and Alan Manne
    2. Harrod and Domar
    3. P.C. Mahalanobis
    4. Chakravarty
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    Answer: (A) Ashok Rudra and Alan Manne

    Explanation: The Fourth Plan was based on the Ashok Rudra and Alan Manne model. The other options are incorrect because Harrod–Domar, Mahalanobis and Chakravarty belong respectively to the First, Second and Third Plans. Fourteen major banks were nationalised in the Fourth Plan.

13. During which plan were 14 major banks nationalised in 1969?

    1. Third Plan
    2. Fourth Plan
    3. Fifth Plan
    4. Sixth Plan
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    Answer: (B) Fourth Plan

    Explanation: Fourteen major banks were nationalised in 1969 during the Fourth Plan. The other options are incorrect because the Third Plan is linked to the Green Revolution’s introduction, the Fifth to MNP, and the Sixth to NABARD. The Fourth Plan also advanced agriculture through the Green Revolution.

14. The Fifth Five Year Plan was terminated one year early by the:

    1. Congress government
    2. Janata government
    3. Planning Commission
    4. NITI Aayog
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    Answer: (B) Janata government

    Explanation: The Janata government terminated the Fifth Plan one year early. The other options are incorrect because the Planning Commission only prepared plans, NITI Aayog replaced it in 2015, and it was the Janata government that ended the Fifth Plan early. The Janata government then introduced the Rolling Plan.

15. The National Highway system was introduced for the first time during the:

    1. Third Plan
    2. Fourth Plan
    3. Fifth Plan
    4. Sixth Plan
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    Answer: (C) Fifth Plan

    Explanation: The National Highway system was introduced for the first time in the Fifth Plan. The other options are incorrect because the Third, Fourth and Sixth Plans are associated with other features, not this introduction. The Fifth Plan also began the Minimum Needs Programme in its first year.

16. Which one of the following pairs is correctly matched?

    1. Minimum Needs Programme — prepared by D.P. Dhar
    2. Minimum Needs Programme — suggested by Gunnar Myrdal
    3. Minimum Needs Programme — recommended by A.P.J. Abdul Kalam
    4. Minimum Needs Programme — prepared by C. Rangarajan
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    Answer: (A) Minimum Needs Programme — prepared by D.P. Dhar

    Explanation: The Minimum Needs Programme began in the first year of the Fifth Plan and was prepared by D.P. Dhar. The other options are incorrect because Myrdal suggested the Rolling Plan, Kalam recommended PURA, and Rangarajan prepared the Eleventh Plan. The Fifth Plan ran from 1974 to 1979.

17. The Rolling Plan (1978–1980) was suggested by:

    1. D.P. Dhar
    2. Gunnar Myrdal
    3. M. Visvesvaraya
    4. P.V. Narasimha Rao
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    Answer: (B) Gunnar Myrdal

    Explanation: The Rolling Plan was suggested by Gunnar Myrdal. The other options are incorrect because D.P. Dhar prepared MNP, Visvesvaraya made the 1934 planning proposal, and Rao was PM during the 1991 LPG reforms. Rolling Plan was the second plan holiday and lasted two years.

18. What is the defining feature of a Rolling Plan?

    1. It fixes targets for fifteen years
    2. It is evaluated every year and a new plan is made for the next year
    3. It consists only of three annual plans without revision
    4. It is a one-time plan for heavy industries
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    Answer: (B) It is evaluated every year and a new plan is made for the next year

    Explanation: A Rolling Plan is evaluated every year and replaced by a new plan for the next year; allocations and targets therefore change. The other options are incorrect because a 15-year horizon refers to the NITI Vision Document, three annual plans to the first holiday, and heavy-industry priority to the Second Plan. The Janata government rejected the Fifth Plan and introduced this plan.

Economic Planning & Five Year Plans - Part 2 is factual rather than analytical: you either recall it in seconds or you lose the mark to somebody who did. That makes it one of the cheapest sections to convert - a handful of short sittings usually settles the whole cluster.

Expect one-line recall questions - definitions, stand-for expansions, identifiers and the ordering of things. Practise the wording as well as the concept: these papers test terminology, and the set above uses the same four-option shape they do.

Past papers reuse clusters like this almost verbatim across years and posts. Run the same set until every distractor is familiar - previous-year style questions stop being recall and start being free marks.