Five Year Plans In India

Agriculture

Step 1: India inherited a damaged economy after independence and partition. Step 2: The most urgent need was to solve the food problem for the large population. Step 3: Therefore, the First Five Year Plan focused mainly on the development of agriculture. Step 4: It was based on the Harrod-Domar Model and aimed to correct economic disequilibrium. Step 5: Heavy industries became the focus only in the Second Plan.

Plan Holiday

Step 1: After the Third Five Year Plan ended in 1966, India faced a war with Pakistan. Step 2: Foreign countries stopped their economic aid and resources became unclear. Step 3: Due to this crisis, regular Five Year Planning was suspended for 3 years (1966-69). Step 4: During these three years, three Annual Plans were run instead. Step 5: This three-year suspension of Five Year Plans is called 'Plan Holiday'.

Elimination of poverty and reduction of income inequalities

Step 1: 'Equity' is one of the four common long-term planning objectives in India. Step 2: It has two parts: (a) elimination of poverty and (b) reduction of income inequalities. Step 3: The idea is that economic growth should benefit all sections of society, not just a few. Step 4: Growth without equity is meaningless if the benefits don't reach the poor. Step 5: Option C (increasing national income) refers to 'Growth', and Option D refers to 'Modernisation' - these are separate objectives.

NITI Aayog

Step 1: The Planning Commission was abolished on August 13, 2014. Step 2: In its place, NITI Aayog (National Institute for Transforming India) was established on January 1, 2015. Step 3: This change was announced by Prime Minister Narendra Modi. Step 4: NITI Aayog works more like a think-tank and promotes cooperative federalism. Step 5: Reserve Bank of India handles monetary policy, and Finance Commission handles fiscal transfers - both are different bodies.