Planning (Economic Development) Part-I

Total Questions: 50

31. Which of the following Five Year Plans of India recognized human development as the core of developments efforts? [U.P.R.O./A.R.O. (Pre) 2016, I.A.S. (Pre) 199]

Correct Answer: (b) Eighth Five Year Plan
Solution:The 8th Five Year Plan recognized 'human development the core of all developmental efforts. Human development in all its many facets, was the ultimate goal of the Eighth Plan.

It was towards fulfilling this goal that the Eighth Plan accorded priority to the generation of adequate employment opportunities to achieve near-full employment by the tum of the century, building up of people's institutions, control of population growth, universalization of elementary education, eradication of illiteracy, provision of safe drinking water and primary health facilities to all, growth and diversification of agriculture to achieve self-sufficiency in foodgrains and generate surpluses for exports.

32. Which of the following Five Year Plans was focused on Human Resource Development? [B.P.S.C. (Pre) 2022]

Correct Answer: (e) None of the above
Solution:In the Eighth Five Year Plan, the top priority was given to the development of human resources i.e. employment, education, and public health. This plan recognized 'human development as the core of all developmental efforts.

The plan focused on the development of various sectoral targets and ensured the necessary resources were deployed in due course, to achieve the target set. This provided the needed stimuli to the economy to progress in a favourable direction.
The plan focused on the overall human development of India.

It was targeted on the development of major parameters in this direction, like provision of safe drinking water, adequate maintenance of literacy levels, proper roads, and housing facilities. The Plan also helped in the development of proper infrastructure of health in all sections of India.

The plan targeted correcting the imbalance of fiscal deficit and budgetary deficits that existed due to the previous five-year plans. The plan promotes the central and the state government participation in bringing proper resource mobilization to enhance the growth of the public sectors.

The eight five year plan in Indian history is classified as important as it encourages the mass participation of the people, in enhancing the development of India. The people mostly were habituated with the role of observers, but the plan changed their roles to that of participants.

The planning commissions previously developed the institutional structure at various levels, the elected people of these bodies under the plan were provided with the necessary resources to bring the needed development in their respective areas. Hence, the plan made the concept of macro-level participation through structural planning a game-changer in the Indian economy.

The eight five year plan also focused on the creation of employment opportunities especially in and around rural areas. This helped in the prevention of urban migration and encouraged the people to stay at their place. The plan helped in the development of income-generating assets in rural areas and provided the rural dwellers with a chance to earn their livelihood through sustainable ways.

33. What is the annual growth rate aimed at in the Eighth Five Year Plan? [R.A.S./R.T.S. (Pre) 1992, M.P. P.C.S. (Pre) 1993, U.P. P.C.S. (Pre) 1995, I.A.S. (Pre) 1995]

Correct Answer: (a) 5.6%
Solution:The Eighth Five Year Plan (1992-97) was postponed by two years because of political uncertainty at the Centre. Annual target growth rate of the plan was 5.6 percent. Actual annual growth rate of the plan period was 6.8 percent.

The plan focused on the development of various sectoral targets and ensured the necessary resources were deployed in due course, to achieve the target set. This provided the needed stimuli to the economy to progress in a favourable direction.
The plan focused on the overall human development of India.

It was targeted on the development of major parameters in this direction, like provision of safe drinking water, adequate maintenance of literacy levels, proper roads, and housing facilities. The Plan also helped in the development of proper infrastructure of health in all sections of India.

The plan targeted correcting the imbalance of fiscal deficit and budgetary deficits that existed due to the previous five-year plans. The plan promotes the central and the state government participation in bringing proper resource mobilization to enhance the growth of the public sectors.

The eight five year plan in Indian history is classified as important as it encourages the mass participation of the people, in enhancing the development of India. The people mostly were habituated with the role of observers, but the plan changed their roles to that of participants.

The planning commissions previously developed the institutional structure at various levels, the elected people of these bodies under the plan were provided with the necessary resources to bring the needed development in their respective areas. Hence, the plan made the concept of macro-level participation through structural planning a game-changer in the Indian economy.

The eight five year plan also focused on the creation of employment opportunities especially in and around rural areas. This helped in the prevention of urban migration and encouraged the people to stay at their place. The plan helped in the development of income-generating assets in rural areas and provided the rural dwellers with a chance to earn their livelihood through sustainable ways.

34. The rate of industrial development fixed in the 8th Five Year Plan is: [RAS/R.TS. (Pre) 1993]

Correct Answer: (c) 7.5%
Solution:The Eighth Five Year Plan aimed at an average annual growth rate of 5.6 percent and an average industrial growth rate of 7.5 percent.

The plan focused on the development of various sectoral targets and ensured the necessary resources were deployed in due course, to achieve the target set. This provided the needed stimuli to the economy to progress in a favourable direction.
The plan focused on the overall human development of India.

It was targeted on the development of major parameters in this direction, like provision of safe drinking water, adequate maintenance of literacy levels, proper roads, and housing facilities. The Plan also helped in the development of proper infrastructure of health in all sections of India.

The plan targeted correcting the imbalance of fiscal deficit and budgetary deficits that existed due to the previous five-year plans. The plan promotes the central and the state government participation in bringing proper resource mobilization to enhance the growth of the public sectors.

The eight five year plan in Indian history is classified as important as it encourages the mass participation of the people, in enhancing the development of India. The people mostly were habituated with the role of observers, but the plan changed their roles to that of participants.

The planning commissions previously developed the institutional structure at various levels, the elected people of these bodies under the plan were provided with the necessary resources to bring the needed development in their respective areas. Hence, the plan made the concept of macro-level participation through structural planning a game-changer in the Indian economy.

The eight five year plan also focused on the creation of employment opportunities especially in and around rural areas. This helped in the prevention of urban migration and encouraged the people to stay at their place. The plan helped in the development of income-generating assets in rural areas and provided the rural dwellers with a chance to earn their livelihood through sustainable ways.

35. What will be the total amount of investment outlay in the Eighth Plan? [M.P.P.C.S. (Pre) 1992, 1994]

Correct Answer: (a) 798000 crore Rs.
Solution:The Eighth Five Year Plan proposed a growth rate of 5.6% per annum on an average during the Plan period. The level of national investment was proposed at Rs. 798000 crore and the public sector outlay at Rs. 434100 crore.

The plan focused on the development of various sectoral targets and ensured the necessary resources were deployed in due course, to achieve the target set. This provided the needed stimuli to the economy to progress in a favourable direction.
The plan focused on the overall human development of India.

It was targeted on the development of major parameters in this direction, like provision of safe drinking water, adequate maintenance of literacy levels, proper roads, and housing facilities. The Plan also helped in the development of proper infrastructure of health in all sections of India.

The plan targeted correcting the imbalance of fiscal deficit and budgetary deficits that existed due to the previous five-year plans. The plan promotes the central and the state government participation in bringing proper resource mobilization to enhance the growth of the public sectors.

The eight five year plan in Indian history is classified as important as it encourages the mass participation of the people, in enhancing the development of India. The people mostly were habituated with the role of observers, but the plan changed their roles to that of participants.

The planning commissions previously developed the institutional structure at various levels, the elected people of these bodies under the plan were provided with the necessary resources to bring the needed development in their respective areas. Hence, the plan made the concept of macro-level participation through structural planning a game-changer in the Indian economy.

The eight five year plan also focused on the creation of employment opportunities especially in and around rural areas. This helped in the prevention of urban migration and encouraged the people to stay at their place. The plan helped in the development of income-generating assets in rural areas and provided the rural dwellers with a chance to earn their livelihood through sustainable ways.

36. The largest source of financing the public sector outlay of the Eighth Five Year Plan comes from: [I.A.S. (Pre) 1995]

Correct Answer: (c) government borrowings
Solution:Public sector outlay for the 8th plan was placed at Rs. 434100 crore. For that, Rs. 202255 crore was set to finance by government borrowings (46.6% of the total investment), which was the highest among all other sources of financing.

The plan focused on the development of various sectoral targets and ensured the necessary resources were deployed in due course, to achieve the target set. This provided the needed stimuli to the economy to progress in a favourable direction.

The plan focused on the overall human development of India. It was targeted on the development of major parameters in this direction, like provision of safe drinking water, adequate maintenance of literacy levels, proper roads, and housing facilities. The Plan also helped in the development of proper infrastructure of health in all sections of India.

The plan targeted correcting the imbalance of fiscal deficit and budgetary deficits that existed due to the previous five-year plans. The plan promotes the central and the state government participation in bringing proper resource mobilization to enhance the growth of the public sectors.

The eight five year plan in Indian history is classified as important as it encourages the mass participation of the people, in enhancing the development of India. The people mostly were habituated with the role of observers, but the plan changed their roles to that of participants.

The planning commissions previously developed the institutional structure at various levels, the elected people of these bodies under the plan were provided with the necessary resources to bring the needed development in their respective areas. Hence, the plan made the concept of macro-level participation through structural planning a game-changer in the Indian economy.

The eight five year plan also focused on the creation of employment opportunities especially in and around rural areas. This helped in the prevention of urban migration and encouraged the people to stay at their place. The plan helped in the development of income-generating assets in rural areas and provided the rural dwellers with a chance to earn their livelihood through sustainable ways.

37. The major shift in the 8th Five Year Plan from its preceding ones is: [I.A.S. (Pre) 1994]

Correct Answer: (b) the concentration of public investment in infrastructural sectors
Solution:A major shift in the Eighth Five Year Plan from its preceding ones was the concentration of public investment in infrastructural sectors. The Eighth Plan was launched at a time of momentous changes in the world and in India.

Government had introduced major reforms to provide greater competitive stimulus to Indian industry. The Eighth Plan carried this process further and given much greater empha- sis on private initiative in industrial development.

The public sector became selective in the coverage of activities and its investments had to be focussed on strategic, high-tech and essential infrastructure. The problems afflict- ing public sector units had to be squarely addressed with a view to making this sector strong and dynamic.

To create an appropriate environment for rapid industrial and economic growth, a major focus of the Eighth Plan was to strengthening of the physical infrastructure, particularly in the areas of energy, transport, communication and irrigation.

38. The Eighth Five Year Plan is different from the earlier ones. [I.A.S. (Pre) 1996]

The critical difference lies in the fact that:

Correct Answer: (a) it has a considerably larger outlay compared to the earlier plans
Solution:A major shift in the Eighth Five Year Plan from its preceding ones was the concentration of public investment in infrastructural sectors. The Eighth Plan was launched at a time of momentous changes in the world and in India.

Government had introduced major reforms to provide greater competitive stimulus to Indian industry. The Eighth Plan carried this process further and given much greater emphasis on private initiative in industrial development.

The public sector became selective in the coverage of activities and its investments had to be focussed on strategic, high-tech and essential infrastructure. The problems afflicting public sector units had to be squarely addressed with a view to making this sector strong and dynamic.

To create an appropriate environment for rapid industrial and economic growth, a major focus of the Eighth Plan was to strengthening of the physical infrastructure, particularly in the areas of energy, transport, communication and irrigation.

39. 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 begin in [I.A.S. (Pre) 2010]

Correct Answer: (c) Eighth Plan
Solution:The Eighth Five Year Plan (1992-97) was postponed by two years because of political uncertainty at the Centre. It emphasized on infrastructure rather than heavy industries. The plan undertook drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6% through introduction of fiscal & economic reforms including liberalization under the Prime Ministership of P.V. Narsimha Rao. In the Eighth Plan, growth rate achieved was 6.8% against the target of 5.6%.

40. 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: [I.A.S. (Pre) 1997]

Correct Answer: (c) 1985-90
Solution:The Seventh Five Year Plan covered the period 1985-90. The Eighth Plan was postponed by the two years (1990-92) because of political uncertainty at the Centre.

The seventh five-year plan was one of the most crucial economic plans in the history of the Indian economy. Before this economic plan, other economic plans had taken place and did not get into action in the right manner as that needs to be.

Thus, the impact of the seventh five-year economic plan had been outstanding for the development of the Indian economy as well as for the growth of the industries. The congress was the ruling party of that time and Rajiv Gandhi was the prime minister.

Through some discussions with the officials and masses, he thought to make that seventh five-year economic plan happen for financial development.
The productivity and the control over the prices of the products had been stabilised because of the plan. There was no such growth in the agriculture sector before the plan had been delivered.

However, after the declaration of the seventh five-year plan, the slow development of the agriculture sector had started to see. The seventh economic plan had managed to boost energy production and socialism as well. Using modern technology to develop the industrial sectors very firmly was one of the most desired things Rajiv Gandhi tried to do. At the same time the anti-poverty programs, development of large-scale farmers helped India to be an independent economic country.