India Five Year Plans (1951–1980) by Himalai Keshav Sir

PART I. Read below given contents  

1. Meaning of Five Year Plans

  • Five Year Plans were government economic plans prepared for 5 years to guide development.
  • Prepared by the Planning Commission.
  • Main goals:
  • Economic growth
  • Agriculture development
  • Industrialisation
  • Poverty reduction
  • Employment generation
  • Social justice
  • The system ended in 2017 after the Planning Commission was replaced by NITI Aayog.

EARLY PHASE OF PLANNING (1951–1966)

2. First Five-Year Plan (1951–1956)

Main Focus

  • Agriculture
  • Irrigation
  • Food security
  • Economic stability after Partition

Important Features

  • Based on the Harrod–Domar Model.
  • Large dams and river valley projects started:
  • Bhakra Nangal Dam
  • Damodar Valley Project
  • Hirakud Dam
  • Establishment of IITs for technical education.
  • Nearly 70% population depended on agriculture.

India needed food and stability immediately after Independence, so agriculture became the top priority.

3. Second Five-Year Plan (1956–1961)

Main Focus

  • Heavy industries
  • Rapid industrialisation

Important Features

  • Based on the Mahalanobis Model by P. C. Mahalanobis.
  • Growth of public sector industries.
  • Steel plants established at:
  • Bhilai
  • Rourkela
  • Durgapur
  • Import substitution policy introduced.

The government believed industries and machines would make India strong in the long run.

Problems

  • Inflation
  • Foreign exchange shortage

4. Third Five-Year Plan (1961–1966)

Main Focus

  • Self-reliance
  • Balanced growth of agriculture and industry

Important Features

  • Focus on wheat production and fertilisers.
  • Greater role for states and Panchayats.

Problems

  • Sino-Indian War
  • Indo-Pakistani War of 1965
  • Droughts and inflation

India wanted to become self-dependent, but wars and droughts weakened the economy.

TRANSITION PERIOD

5. Plan Holidays (1966–1969)

Meaning

  • No regular Five Year Plan was implemented.
  • Instead, three Annual Plans were introduced.

Main Focus

  • Economic recovery
  • Food security
  • Inflation control

The government paused long-term planning because of economic crisis.

GREEN REVOLUTION & POVERTY REMOVAL ERA

6. Fourth Five-Year Plan (1969–1974)

Main Focus

  • Growth with stability
  • Self-reliance

Important Features

  • Based on the Gadgil Formula.
  • Nationalisation of 14 banks.
  • Expansion of the Green Revolution.
  • Launch of DPAP (Drought Prone Area Programme).

The government tried to balance economic growth and regional equality.

7. Fifth Five-Year Plan (1974–1978)

Main Focus

  • Poverty removal
  • Employment generation

Famous Slogan

  • “Garibi Hatao”

Important Features

  • Minimum Needs Programme (MNP)
  • The programme aimed to improve basic services like health, education, roads, and electricity. This plan focused directly on improving the lives of poor people.

Growth Rate

8. Rolling Plan (1978–1980)

Meaning

  • Plans revised every year instead of fixed 5 years.

Easy Concept

The government wanted flexibility to change targets annually.

Outcome

PART -II ANSWER FOR MULTIPLE CHOICE QUESTIONS (MCQs)

1. Meaning of Five Year Plans

Question 1

Consider the following statements:

Statement-I: Five Year Plans were prepared to guide India’s economic and social development.
Statement-II: The Planning Commission was responsible for preparing Five Year Plans.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: a

Question 2

Consider the following statements:

Statement-I: The Five Year Plan system ended in 2017.
Statement-II: The Planning Commission was replaced by NITI Aayog.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: a

EARLY PHASE OF PLANNING (1951–1966)

2. First Five-Year Plan (1951–1956)

Question 3

Consider the following statements:

Statement-I: The First Five-Year Plan mainly focused on agriculture and irrigation.
Statement-II: India faced food shortages and economic instability after Independence and Partition.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: a

Question 4

Consider the following statements:

Statement-I: The First Five-Year Plan was based on the Harrod–Domar Model.
Statement-II: Large multipurpose river valley projects were started during the First Plan.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: b

3. Second Five-Year Plan (1956–1961)

Question 5

Consider the following statements:

Statement-I: The Second Five-Year Plan focused on heavy industries and industrialisation.
Statement-II: The plan was based on the Mahalanobis Model.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: a

Question 6

Consider the following statements:

Statement-I: Steel plants at Bhilai, Rourkela, and Durgapur were established during the Second Plan.
Statement-II: The Second Plan encouraged the growth of public sector industries.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: a

4. Third Five-Year Plan (1961–1966)

Question 7

Consider the following statements:

Statement-I: The Third Five-Year Plan aimed at self-reliance and balanced growth.
Statement-II: The plan gave importance to agriculture and industry equally.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer:a

Question 8

Consider the following statements:

Statement-I: Wars and droughts affected the success of the Third Five-Year Plan.
Statement-II: India fought wars with China and Pakistan during this period.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: a

TRANSITION PERIOD

5. Plan Holidays (1966–1969)

Question 9

Consider the following statements:

Statement-I: During Plan Holidays, regular Five-Year Plans were suspended.
Statement-II: Three Annual Plans were introduced during this period.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer:a

Question 10

Consider the following statements:

Statement-I: Plan Holidays focused on economic recovery and inflation control.
Statement-II: India was facing an economic crisis during this period.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: a

GREEN REVOLUTION & POVERTY REMOVAL ERA

6. Fourth Five-Year Plan (1969–1974)

Question 11

Consider the following statements:

Statement-I: The Fourth Five-Year Plan focused on growth with stability and self-reliance.
Statement-II: The Green Revolution was expanded during the Fourth Plan.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: b

Question 12

Consider the following statements:

Statement-I: Fourteen major banks were nationalised during the Fourth Five-Year Plan.
Statement-II: Bank nationalisation aimed to improve access to credit and support development.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: a

7. Fifth Five-Year Plan (1974–1978)

Question 13

Consider the following statements:

Statement-I: The Fifth Five-Year Plan focused on poverty removal and employment generation.
Statement-II: “Garibi Hatao” was the famous slogan associated with this plan.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: b

Question 14

Consider the following statements:

Statement-I: The Minimum Needs Programme was introduced during the Fifth Plan.
Statement-II: The programme aimed to improve basic services like health, education, roads, and electricity.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: a

8. Rolling Plan (1978–1980)

Question 15

Consider the following statements:

Statement-I: The Rolling Plan revised targets every year instead of fixed five-year periods.
Statement-II: The government introduced the Rolling Plan to increase flexibility in economic planning.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: a

Question 16

Consider the following statements:

Statement-I: The Rolling Plan continued successfully for many years in India.
Statement-II: The Rolling Plan was discontinued in 1980.

Which one of the following is correct?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
(c) Statement-I is correct but Statement-II is incorrect.
(d) Statement-I is incorrect but Statement-II is correct.

Answer: d

III. Answer for  DESCRIPTIVE QUESTIONS WITH 20WORD

1. Meaning of Five Year Plans

Q1. What were Five Year Plans?
Five Year Plans were government economic programmes prepared for five years to guide India’s development, growth, employment, agriculture, and industries.

Q2. Who prepared the Five Year Plans?
The Planning Commission prepared India’s Five Year Plans to organise economic development, national priorities, resource allocation, and social welfare programmes.

Q3. What were the main goals of Five Year Plans?
The main goals were economic growth, agricultural development, industrialization, poverty reduction, employment generation, and social justice

Q4. Why did the Five Year Plans system end in 2017 ?
The Five Year Plan system ended after the Planning Commission was replaced by NITI Aayog for flexible policy planning approaches.

EARLY PHASE OF PLANNING (1951–1966)

2. FIRST FIVE-YEAR PLAN (1951–1956)

Q1. What was the main focus of the First Five-Year Plan?
The First Five-Year Plan mainly focused on agriculture, irrigation, food security, and stabilising India’s economy after Independence and Partition.

Q2. Which model was used in the First Five-Year Plan?
The First Five-Year Plan was based on the Harrod–Domar Model, which emphasised economic growth through investment and capital formation.

Q3. Name important projects started during the First Plan.
Important projects included Bhakra Nangal Dam, Damodar Valley Project, Hirakud Dam, and establishment of IITs for technical education.

Q4. Why was agriculture prioritised in the First Plan?
Agriculture was prioritised because most Indians depended on farming and the country faced serious food shortages after Independence and Partition.

3. SECOND FIVE-YEAR PLAN (1956–1961)

Q1. What was the main focus of the Second Five-Year Plan?
The Second Five-Year Plan mainly focused on heavy industries, rapid industrialisation, and strengthening India’s long-term industrial development and economy.

Q2. Which model guided the Second Five-Year Plan?
The Second Five-Year Plan was guided by the Mahalanobis Model, prepared by economist P. C. Mahalanobis for industrial growth.

Q3. Which steel plants were established during the Second Plan?
Steel plants were established at Bhilai, Rourkela, and Durgapur to promote heavy industries and industrial development during the Second Plan.

Q4. What problems occurred during the Second Five-Year Plan?
The Second Five-Year Plan faced problems like inflation, shortage of foreign exchange, and financial difficulties due to rapid industrialisation policies.

4. THIRD FIVE-YEAR PLAN (1961–1966)

Q1. What was the main aim of the Third Five-Year Plan?
The Third Five-Year Plan aimed to achieve self-reliance and balanced growth between agriculture and industrial sectors in India’s economy.

Q2. What agricultural measures were promoted during the Third Plan?
The Third Plan promoted wheat production, use of fertilisers, and agricultural improvements to increase food production and self-sufficiency nationwide.


Q3. Why did the Third Five-Year Plan fail?
The Third Plan failed because wars with China and Pakistan, droughts, and inflation weakened India’s economy and development programmes severely.

TRANSITION PERIOD

5. Plan Holidays (1966–1969)

Q1. What is meant by Plan Holidays?
Plan Holidays refer to the period when regular Five-Year Plans were suspended and replaced by three separate Annual Plans in India.

Q2. Why were Plan Holidays introduced?
Plan Holidays were introduced because India faced economic crisis, inflation, food shortages, and financial instability after wars and droughts.

Q3. What were the main goals of Annual Plans?
The Annual Plans mainly focused on economic recovery, food security, controlling inflation, and stabilising India’s economy during the crisis period.

GREEN REVOLUTION & POVERTY REMOVAL ERA

6. FOURTH FIVE-YEAR PLAN (1969–1974)

Q1. What was the main focus of the Fourth Five-Year Plan?
The Fourth Five-Year Plan focused on growth with stability, self-reliance, and reducing regional inequalities through balanced economic development policies.

Q2. Which formula was used in the Fourth Plan?
The Fourth Five-Year Plan was based on the Gadgil Formula, which helped distribute resources among Indian states more equally.

Q3. What important measures were introduced during the Fourth Plan?
Important measures included bank nationalisation, Green Revolution expansion, and launching the Drought Prone Area Programme for regional development.

7. FIFTH FIVE-YEAR PLAN (1974–1978)

Q1. What was the main focus of the Fifth Five-Year Plan?
The Fifth Five-Year Plan focused on poverty removal, employment generation, improving living standards, and providing basic needs to poor people.

Q2. What was the famous slogan of the Fifth Plan?
The famous slogan of the Fifth Five-Year Plan was “Garibi Hatao,” which means removal of poverty from Indian society.

Q3. What was the Minimum Needs Programme?
The Minimum Needs Programme aimed to provide essential services like health, education, roads, electricity, and drinking water to people.

Q4. How did the Fifth Plan help poor people?
The Fifth Plan helped poor people through employment programmes, better infrastructure, poverty reduction schemes, and expansion of basic public services.

8. ROLLING PLAN (1978–1980)

Q1. What is a Rolling Plan?
A Rolling Plan is a flexible planning system where targets and policies are revised every year instead of fixed periods.

Q2. Why was the Rolling Plan introduced?
The Rolling Plan was introduced to provide flexibility and allow the government to change economic targets according to changing conditions.

Q3. What happened to the Rolling Plan?
The Rolling Plan was discontinued in 1980 after the government decided to return to the regular Five-Year Plan system.

IV. ANSWER FOR Descriptive Questions in about 250 words

Explain the development of Five Year Plans in India from the First Plan to the Rolling Plan.

Answer

India adopted the system of Five Year Plans after Independence to guide economic and social development. These plans were prepared by the Planning Commission for fixed periods of five years. Their main objectives were economic growth, agricultural development, industrialisation, poverty reduction, employment generation, and social justice.

The First Five-Year Plan (1951–1956) mainly focused on agriculture, irrigation, food security, and economic stability after Partition. It was based on the Harrod–Domar Model. Major projects like Bhakra Nangal Dam, Damodar Valley Project, and Hirakud Dam were started. IITs were also established for technical education. Agriculture received priority because most Indians depended on farming.

The Second Five-Year Plan (1956–1961) focused on heavy industries and rapid industrialisation. It was based on the Mahalanobis Model. Public sector industries expanded, and steel plants were established at Bhilai, Rourkela, and Durgapur. However, inflation and foreign exchange shortages became major problems.

The Third Five-Year Plan (1961–1966) aimed at self-reliance and balanced growth of agriculture and industry. It promoted wheat production and fertilisers. However, the Sino-Indian War, Indo-Pakistani War of 1965, droughts, and inflation weakened the economy.

During Plan Holidays (1966–1969), regular plans were suspended, and three Annual Plans were introduced to achieve economic recovery and inflation control.

The Fourth Plan (1969–1974) focused on growth with stability and self-reliance. Bank nationalisation and Green Revolution expansion were important measures.

The Fifth Plan (1974–1978) focused on poverty removal and employment generation with the slogan “Garibi Hatao.”

Finally, the Rolling Plan (1978–1980) introduced yearly revisions for flexibility but was discontinued in 1980.