Planning is part of Economic Development. Below are notes on 13 sub-topics, followed by practice MCQs from State PSC and UPSC papers.

Achievements and Failures of Planning in India

  • First Five Year Plan (1951-56): National income increased by 18%; success attributed to good agricultural harvests.
  • Third Five Year Plan (1961-66): Experienced Sino-Indian War (1962) & Indo-Pak War (1965); recorded lowest national income growth rate (2.4%).
  • First Plan Holiday: Period 1966-1969, comprising three annual plans.
  • Early Planning Phase (first two decades): Characterized by Import Substitution Industrialization (ISI); foreign exchange position was unsatisfactory.
  • Sixth Five Year Plan (1980-85): EXIM Bank established in 1982. There were two Sixth Five Year Plans (1978-83 by Janata, 1980-85 by Congress) due to change of power at the Centre.
  • Seventh Five Year Plan (1985-90): Decentralised planning introduced; targeted 5.0% GDP growth, achieved 6.0%.
  • Eighth Five Year Plan (1992-97): Achieved the highest agricultural growth rate (4.7%).
  • Ninth Five Year Plan (1997-2002): Annual inflation rate was approximately 4%.
  • Tenth Five Year Plan (2002-07): Unique feature of laying specific targets for each state; targeted 8% GDP growth (achieved 7.6%); annual inflation rate was approximately 5%; achieved the maximum GDP growth rate (7.6%) among specific options. Targeted literacy rate to 75% by 2007 and to reduce poverty by 5 percentage points by 2007.
  • Eleventh Five Year Plan (2007-12): Achieved maximum per-capita growth rate (7.6%). Theme: "Towards Faster and More Inclusive Growth."
  • Twelfth Five Year Plan (2012-17): Theme: "Faster, More Inclusive and Sustainable Growth."
  • Model Schools (11th & 12th FYP): Financial partnership ratio between Central Govt. and State Govt. was 75:25 for general states.
  • Planning in India (Associated bodies): National Development Council (NDC) and Parliament.
  • Gadgil-Mukerjee Formula (1991): Gives highest weightage to Population (60%).
  • Book "Planning and the Poor": Authored by B.S. Minhas.
  • Twenty Point Programme (TPP): Launched in 1975.
  • Rural Employment/Poverty Programs (Chronological Order): Integrated Rural Development Pro1. gramme (IRDP): 1978 (expanded 1980) - self-employment programme. National Rural Employment Pro2. gramme (NREP): 1980 - wage employment. Development of Women and Children 3. in Rural Areas (DWCRA): 1982. Jawahar Rojgar Yojana (JRY): 1989 4. wage employment.

Evolution of Planning in India (Five-Year Plans era)

Early Planning Ideas: 1.

    • M. Visvesvaraya: Authored "The Planned Economy of India" (1934). Considered the "Father of Indian Economic Planning". Proposed shifting from agriculture to industrialization and aimed to double national income in 10 years.
    • National Planning Committee (1938): Constituted by Indian National Congress under Jawaharlal Nehru.
    • Bombay Plan (1944): Prepared by 8 prominent Indian industrialists (J.R.D. Tata, G.D. Birla, etc.). Emphasized industrialization and aimed to double per capita income in 15 years.
    • Gandhian Plan (1944): Drafted by S.N. Agarwal. Focused on decentralized planning, small-scale and cottage industries, and rural development.
    • People's Plan (1945): Formulated by M.N. Roy.
    • Economic Programme Committee (1947): Recommended the establishment of the Planning Commission.
    • Sarvodaya Plan (1950): Drafted by Jayaprakash Narayan. Based on Gandhian principles and Bhoodan movement. Key Institutions: 2.
    • Planning Commission: Established on March 15, 1950.
    • National Development Council (NDC): Formed on August 6, 1952. Approved Five-Year Plans.
    • Planned Development Model: Adopted in India from April 1, 1951. First Five Year Plan (1951-56): 3.
    • Model: Harrod-Domar (with minor modifications).
    • Focus: Agricultural development, irrigation, power projects (e.g., Damodar Valley Corporation, DVC, whose planning was inspired by TVA). Correction of disequilibrium caused by WWII.
    • Institution: All India Khadi and Village Industries Board (predecessor to KVIC) set up.
    • Jawaharlal Nehru called multipurpose river valley projects "the temples of modern India."
    • Accorded high priority to agriculture. Second Five Year Plan (1956-61): 4.
    • Model: P.C. Mahalanobis Model. P.C. Mahalanobis is known as the "Architect of Indian Planning."
    • Focus: Rapid industrialization, development of basic and heavy industries, establishing a "Socialist Pattern of Society."
    • Institution: Khadi and Village Industries Commission (KVIC) established.
    • Shift in pattern of industrialization towards basic and capital goods industries. Bokaro town/industrial complex was planned during this period.
    • Maximum emphasis on the industrial sector. Third Five Year Plan (1961-66): 5.
    • Also known as: Gadgil Yojana.
    • Focus: Self-reliant and self-generating economy, emphasis on agriculture (especially wheat production) and basic industries. Plan Holiday (1966-69): 6.
    • Period: 1966-1969.
    • Reasons: Indo-China War (1962), Indo-Pak War (1965), two successive droughts (1965-67), resource shortage, and inflationary pressures. Three Annual Plans were implemented. Fourth Five Year Plan (1969-74): 7.
    • Focus: Growth with Stability and Progressive Achievement of Self-Reliance. Correcting earlier trends of increased concentration of wealth and economic power.
    • Scheme: Integrated Urban Development Project initiated.
    • Delayed due to Plan Holiday (caused by Chinese aggression and conflict with Pakistan). Fifth Five Year Plan (1974-79): 8.
    • Focus: "Garibi Hatao" (Poverty Alleviation) and attainment of self-reliance.
    • Duration: Terminated one year early (in 1978) by the new government.
    • Scheme: Twenty Point Economic Programme launched in 1975.
    • First time the financial sector was included as an integral part of the Plan. Rolling Plan (1978-80): 9.
    • Introduced by: Morarji Desai's Janata Party government.
    • Concept: An existing plan is reviewed and updated periodically. It comprised a series of annual plans, a plan for 3-5 years, and a perspective plan for 10-20 years. (Period: 1978-79 and 1979-80). Sixth Five Year Plan (1980-85): 10.
    • Focus: Poverty eradication and technological self-reliance. Seventh Five Year Plan (1985-90): 11.
    • Focus: "Food, Work, and Productivity." Emphasis on infrastructure and lower emphasis on heavy industries. Annual Plans (1990-92): Due to political in12. stability and economic crisis, the Eighth Plan was postponed by two years. Eighth Five Year Plan (1992-97): 13.
    • Also known as: "Rao and Manmohan" Plan (due to LPG reforms).
    • Focus: Human resource development (employment, education, public health). It was a plan for managing the transition from a centrally planned economy to a market economy.
    • Policy: Government launched the New Economic Policy of India (LPG Reforms) during this period. Industrial licensing was abolished. Ninth Five Year Plan (1997-2002): 14.
    • Focus: "Growth with Justice and Equity." High priority to agriculture and rural development. Tenth Five Year Plan (2002-07): 15.
    • Focus: Doubling per capita income and poverty reduction. Eleventh Five Year Plan (2007-12): 16.
    • Focus: "Faster and More Inclusive Growth." This plan explicitly accepted the strategy of inclusive growth for the first time. Twelfth Five Year Plan (2012-17): 17.
    • Duration: 2012-2017. (The last FiveYear Plan of India).
    • Focus: "Faster, More Inclusive and Sustainable Growth."
    • Target: Average GDP growth target of 8%.
    • Completed in 2017. Overall Planning Events Sequence: 18. National Planning Committee 1. constituted (1938) Planning Commission established 2. (1950) National Development Council formed 3. (1952) Approval of First Five-Year Plan by 4. NDC (1952) Mahalanobis Model (implemented in 5. 2nd FYP, 1956-61) Plan Holiday (1966-69) 6. Rolling Plan introduced (1978-80) 7. Inclusive Growth Strategy (adopted in 8. 11th FYP, 2007-12) Opposition to Planned Development: Ma19. hatma Gandhi (preferred village-based economy).

Meaning and Scope of Economic Planning

  • Economic Planning: Allocation of economic resources and determination of production based on a predetermined plan.
  • Indian Economy Planning Process: Generally considered an 'open process'.
  • "Planned Economy for India" (book): Authored by Sir M. Visvesvarayya.
  • Economic Projection Methods (used in planning): Include Simple Extrapolation Method and Input-Output Method.
  • Zero-Based Budgeting (ZBB): A budgeting technique characterized by starting from scratch, requiring justification for every expenditure for each new period.

NITI Aayog's Role in Cooperative Federalism and Strategic Planning

  • NITI Aayog (National Institution for Transforming India) replaced the Planning Commission on January 1, 2015, acting as a think tank for the Government of India with a focus on cooperative federalism and strategic planning.
  • Atal Innovation Mission (AIM) is a flagship initiative established by NITI Aayog.
  • The 'Atal New India Challenge' (under AIM) provides grants of up to ₹ 1 crore to innovative products and solutions.
  • The "PURA" (Providing Urban Amenities to Rural Areas) model is associated with Dr. A.P.J. Abdul Kalam.
  • PM Gati Shakti - National Master Plan for Multi-modal Connectivity targets integrating road, rail, port, and airport infrastructure for faster and efficient movement of goods and people.

Objectives of Economic Planning (Growth, Equity, Self-reliance, Poverty Alleviation)

  • General Objectives of Economic Planning: Economic Growth, Equity/Social Justice, Self-reliance, Poverty Alleviation, Modernization, Employment Generation, Human Resource Development.
  • First Five Year Plan (1951-56): Priority on Development of Agriculture, Irrigation, and Power.
  • Second Five Year Plan (1956-61): Objectives included development of basic and heavy industries, increase in national income to raise living standards, and expansion of employment opportunities. It did not focus on the expansion of the consumer goods sector.
  • Third Five Year Plan (1961-66): Aimed for a Self-reliant and self-generating economy. Increased imports during this period were due to rapid industrialization (machinery, equipment, industrial raw materials), increased defense needs (following aggression by China and Pakistan), and extensive crop failure in 1965-66 necessitating large food grain imports.
  • Fourth Five Year Plan (1969-74): Focused on "Growth with Stability and Progressive Achievement of Self-reliance." Its objective included attaining self-reliance and zero net foreign aid.
  • Fifth Five Year Plan (1974-79): Main objectives were "Garibi Hatao" (Removal of Poverty) and Attainment of Self-reliance. Its focus was "Growth with social justice."
  • Unemployment: Serious concern for solving the unemployment problem began from the Sixth Five Year Plan onward.
  • Seventh Five Year Plan (1985-90): Mainly emphasized Food grain production, Employment, and Productivity.
  • Eighth Five Year Plan (1992-97): Was prominently focused on Human Resource Development (HRD).
  • Ninth Five Year Plan (1997-2002): Targeted an annual growth rate of 7.0%.
  • Eleventh Five Year Plan (2007-12): Targeted an annual GDP growth rate of 9.0%. Its inclusive growth strategy included reduction in poverty, extension of employment opportunities, and reduction in gender inequality. Strengthening of the capital market was not considered a core part of its inclusive growth strategy.
  • Twelfth Five Year Plan (2012-17): Its main/ basic objective was "Faster, Sustainable and More Inclusive Growth." Also referred to as "Sustainable and Inclusive Growth."

Planning Models and Strategies (e.g., Nehru-Mahalanobis Model)

  • Harrod-Domar Model:
    • A Keynesian model of economic growth.
    • First Five-Year Plan (1951-56) was based on this model or a simple variant of it.
    • Focused on agriculture, irrigation, and power; emphasized increasing savings and investment.
    • 'Warranted Rate of Growth' depends on saving-income ratio and incremental capital output ratio.
    • R.F. Harrod also proposed the concept of 'Natural Growth Rate'.
  • Nehru-Mahalanobis Model (Mahalanobis Model / Nehruvian-Feldman-Mahalanobis Model):
    • Associated with Prof. P. C. Mahalanobis.
    • Second Five-Year Plan (1956-61) was based on this model and is popularly known as the 'Mahalanobis Plan'.
    • Aimed to establish a 'socialist pattern of society'.
    • Key Features/Strategies:
      • Concerned with the planned growth of the Indian economy.
      • High priority on rapid industrialization, especially the development of heavy (capital goods) industries.
      • Major involvement of the State in the economy (statist approach).
      • Enhancing the scope and importance of the public sector.
      • Emphasis on a high rate of saving.
      • Strategy of import substitution (discouraged imports to safeguard infant industries and achieve self-reliance).
      • Aimed at restructuring economic dependency into independent economic development.
      • P.C. Mahalanobis suggested allocating approximately 33.3% of investment to the capital goods sector to achieve a high rate of capital formation.
    • Not a feature: Industrial deregulation, disinvestment in the public sector, or globalization of the economy.
  • Other Five-Year Plan Models (as per MCQs):
    • Third Five-Year Plan: Associated with the S. Chakravarty Model.
    • Fourth Five-Year Plan: Associated with the Ashok Rudra Model.
    • Fifth Five-Year Plan: Foundation included Harrod-Domar one-sector model, Leontief Input-Output Model, and a Consumption sub-model.

Regional Disparities and Balanced Regional Development

  • Damodar Valley Project (DVP), 1948: Earliest comprehensive regional planning exercise in India.
  • Third Five-Year Plan (1961-66): Emphasized balanced regional development as a major objective.
  • Orissa (Odisha): Pioneered the first statelevel techno-economic survey (1957-58) with technical help from Stanford Research Institute of California (U.S.A.).
  • Dandakaranya Project Authority: Established 1957 for refugee rehabilitation.
  • National Capital Region (NCR) Planning Board: Established 1985 (under NCR Planning Board Act, 1985).

Resource Mobilization for Planning

  • Resource Mobilization: Essential for the successful implementation of development plans, involving the collection and efficient allocation of financial, human, and natural resources.
  • Key requirements for a successful plan include:
    • Clear objectives, targets, and priorities.
    • Availability of accurate statistical data.
    • Effective planning body (e.g., Planning Commission).
    • Adequate mobilization of resources (financial, human, material).
    • Incorrupt and efficient administration.
    • Sound development policy.
    • Economy in administration and a strong educational base.
  • Finance for Indian plans is primarily obtained from:
    • Domestic savings (from households, corporate sector, and government).
    • Public borrowings (market loans, small savings, provident funds).
    • Deficit financing (printing of new currency by RBI).
    • External assistance (foreign aid, loans).
  • National Investment and Infrastructure Fund (NIIF): Registered as a Trust under the Indian Trusts Act, 1882, established to catalyze investment into infrastructure in India.

Role of State and Market in Modern Economic Planning

Role of State in Economic Planning: 1.

    • Historically, state-led planning (e.g., India pre-1991) involved setting targets, resource allocation, and public sector dominance.
    • Monetary Policy (RBI): A key state tool to influence economic activity.
    • Statutory Liquidity Ratio (SLR): Mandates banks to hold a fraction of deposits as liquid assets.
    • SLR Reduction (e.g., by RBI): Increases liquidity available with Scheduled Commercial Banks (SCBs) for lending.
    • Likely Consequence of SLR Reduction: SCBs may cut their lending rates due to increased liquidity, stimulating credit and investment.
    • Post-liberalization, state's planning focus shifted more towards human resource development, infrastructure, social welfare, and population control. Role of Market in Economic Planning: 2.
    • In a market economy, the market mechanism (interaction of demand, supply, and price system) primarily solves central economic problems (what, how, for whom to produce).
    • India's Liberalization (1991 Reforms): Signified a major shift towards market-oriented policies.
    • Impact on Industrial Planning (1990s onwards):
      • Central planning in the industrial sector became less important.
      • Industrial investments and development largely moved to the domain of private and multinational sectors.
      • Markets assumed a central place, rendering the role of central planning redundant in many industrial sectors. Modern Economic Planning: Typically in3. volves a mixed economy approach, balancing state intervention with market forces, with the balance often shifting over time based on economic philosophy and needs.

Sectoral Planning (Agriculture, Industry, Infrastructure, Social Sector)

  • Agriculture Sector Planning:
    • First Five-Year Plan: Highest proportional plan allocation for agriculture and irrigation.
    • Tenth Five-Year Plan (2002-2007):
      • Implemented National Project on Organic Farming.
      • Launched National Horticulture Mission (2005-06).
    • Inflation Management (Supply-Side): Long-term policies include changing production patterns, calibrated import policy, focus on transportation, and improved storage infrastructure for perishable commodities.
    • Plan Outlays (2021-22): Agriculture & Allied Services: ₹929.31 crore.
  • Industry Sector Planning:
    • Core Sector: Comprises selected basic industries (e.g., coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, electricity).
    • Second Five-Year Plan: Emphasis on Capital Goods industry growth (Mahalanobis Model).
    • Tenth Five-Year Plan: Services sector recorded the highest growth rate.
  • Infrastructure Sector Planning:
    • Public-Private Partnership (PPP) Models: Build-Operate-Transfer (BOT), Build-Own-Operate (BOO), Build-Operate-Lease-Transfer (BOLT), DesignBuild-Finance-Operate-Transfer (DBFOT).
    • Bharatmala Pariyojana (2017):
      • Aims to develop approximately 26,000 km length of Economic Corridors.
      • Funding primarily involves market borrowing and private sector investment, not solely from petrol/diesel cess and tolls.
    • National Energy Policy (NEP):
      • Aims to meet government energy domain announcements.
      • All Census villages planned to be electrified by 2018; universal 24x7 electricity by 2022.
    • Electricity Consumption Priority (India): Industry > Agriculture > Railway Traction > Public Lighting.
    • National Infrastructure Pipeline (NIP) (FY 2020-2025):
      • Projected investment target: ₹111 lakh crore.
      • Objective: Provide equitable access to infrastructure for all.
    • PM Gati Shakti: An integrated digital platform for infrastructure development.
    • Diamond Quadrilateral: Connects India's four main megacities (Delhi, Mumbai, Chennai, Kolkata) by superfast railway services.
    • Eleventh Five-Year Plan: Construction sector expected largest increase in employment opportunities.
    • Plan Outlays (2021-22): Energy:

crore.

  • Social Sector Planning:
    • Pradhan Mantri Shram Yogi MaanDhan Scheme (PMSYM): Minimum assured pension of ₹3,000 per month after attaining 60 years.
    • Stand Up India Scheme:
      • Purpose: Promote entrepreneurship among SC/ST and women.
      • Provides for refinance through SIDBI.
    • Prime Minister Rozgar Yojana (PMRY): Implemented by Nationalised Banks, Small Industry Service Institutes, District Industries Centres, and District Employment Exchanges.
    • Pradhan Mantri Mudra Yojana (PMMY):
      • Operates under the Ministry of Finance.
      • Maximum loan amount sanctioned: ₹10 lakh for own enterprise.
    • "Swavalambini" Programme: Women entrepreneurship program for the North-East, launched by the Ministry of Micro, Small and Medium Enterprises (MSME).
    • Eleventh & Twelfth Five-Year Plans: Social sector/services accounted for maximum combined Central, State, and UT expenditure and had the largest fund allocation.
    • Key Social Sector Programmes & Launch Years:
      • Swarnajayanti Gram Swarozgar Yojana (SGSY): 1999.
      • Swarnjayanti Shahari Rozgar Yojana (SJSRY): 1997.
      • Jawahar Rozgar Yojana (JRY): 1989.
      • National Rural Health Mission (NRHM): 2005.
    • Plan Outlays (2021-22): Social Services: ₹3221.49 crore.

Shift from Planning Commission to NITI Aayog: Genesis, Structure, and Functions

  • Planning Commission (PC) established: 1950.
  • Last Deputy Chairman of Planning Commission: Shri Montek Singh Ahluwalia.
  • Decision to scrap Planning Commission announced: August 13, 2014.
  • Reasons for ending centralized Five-Year Plans/Planning Commission:
    • Centralized planning deemed ineffective for diverse India.
    • States required greater autonomy in planning expenses.
    • Planning process largely focused on public sector, marginalizing private sector.
  • NITI Aayog (National Institution for Transforming India) replaced the Planning Commission.
  • NITI Aayog officially came into operation on: January 1, 2015.
  • NITI Aayog functions as a premier policy 'Think Tank' of the Government of India.
  • Guiding principle of NITI Aayog: Cooperative Federalism, 'Team India' approach, and Normative Planning (facilitator, not dictator).

Sustainable Development Goals (SDGs) and National Planning

  • Sustainable Development Goals (SDGs): 17 global goals adopted by UN in 2015.
  • SDGs target year: 2030 (Agenda 2030).
  • 12th Five Year Plan (2012-2017): Main theme was "Faster, More Inclusive and Sustainable Growth."
  • The 12th Five Year Plan was the last of the Five Year Plans.

Vision, Strategy, and Three-Year Action Agenda by NITI Aayog

  • NITI Aayog's comprehensive long-term planning document is 'Strategy for New India @ 75', which integrates a 15-year Vision, a 7year Strategy, and a 3-year Action Agenda.
  • The Union Budget 2019-20 presented a 10point vision for the decade.
  • This 10-point vision included: Building physical & social infrastructure; Making Digital India reach every sector of the economy; Clean & Green India; Rural industrialisation with MSMEs, artisans, and farmers; Clean rivers & Water management; Blue Economy; Space programmes (Gaganyaan, Chandrayaan); Food security & farmer income; Healthy society (Ayushman Bharat, women safety); Good governance & transparent financial system.
  • An "Electronic fund raising platform under the regulatory ambit of SEBI" was NOT a part of the Union Budget 2019-20's 10-point vision.

9. Money & Banking

Practice MCQs: Planning

Achievements and Failures of Planning in India

  1. During which Five Year Plan, did Indian agriculture grow at the highest rate?

    Asked in: CGPSC Prelims Exam 2012

    1. Ninth Five Year Plan
    2. Tenth Five Year Plan
    3. Eighth Five Year Plan
    4. Fourth Five Year Plan
    Show answer

    Answer: C. Eighth Five Year Plan

    - The question asks for the highest agricultural growth rate among the given plans. - The Eighth Five Year Plan (1992-1997) saw a strong performance in agriculture. - Economic reforms initiated in the early 1990s contributed to this growth. Ans: B GS 32 2023 IS DEEO 1505-2024 The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services. It was introduced in India through the Constitution (One Hundred and First Amendment) Act, 2016, and officially implemented on 1st July 2017.

  2. The VAT stands for:

    Asked in: Research Assistant 2014

    1. Value Alternative Tax
    2. Very Authentic Tax
    3. Value Added Tax
    4. Value Addition Tax
    Show answer

    Answer: C. Value Added Tax

    VAT is a multi-stage tax system where tax is paid only on the value added at each stage. This is different from a single-stage sales tax.

  3. During which Five Year Plan, India has achieved the maximum per-capita growth rate?

    Asked in: CGPSC Prelims Exam 2013

    1. Eleventh Plan
    2. Tenth Plan
    3. Eighth Plan
    4. Fifth Plan
    Show answer

    Answer: A. Eleventh Plan

    The average annual GDP growth rate during the Eleventh Plan was around 8%, leading to a significant increase in per capita income, despite facing the global financial crisis towards the end of the plan period.

  4. In which one of the Five Year Plans, was the EXIM Bank established in India ?

    Asked in: KPSC KAS Prelims 2015

    1. Second
    2. Fourth
    3. Fifth
    4. Sixth
    Show answer

    Answer: D. Sixth

    EXIM Bank is the principal financial institution in India for coordinating the working of institutions engaged in financing exports and imports.

  5. Annual rate of inflation during 9th and 10th Plan in India was

    Asked in: MPSC CS Prelims 2015

    1. 4% and 5% respectively
    2. 5% and 7% respectively
    3. 4% and 7% respectively
    4. 7% and 5% respectively
    Show answer

    Answer: A. 4% and 5% respectively

    - The 9th Five Year Plan ran from 1997 to 2002. The average WPI inflation during this period was around 4.1%. - The 10th Five Year Plan ran from 2002 to 2007. The average WPI inflation during this period was around 5.2%. - Option A (4% and 5%) is the closest approximation to these average inflation rates.

  6. Which Five Year Plan had a unique feature to lay down specific targets for each state in consultation with the State Government ?

    Asked in: MPSC CS Prelims 2015

    1. 10th Five Year Plan
    2. 8th Five Year Plan
    3. 12th Five Year Plan
    4. 11th Five Year Plan
    Show answer

    Answer: A. 10th Five Year Plan

    - The 10th Plan aimed to promote state-specific strategies for development and improve the implementation of national plans by taking into account the diverse conditions and priorities across states. - For the first time, specific targets were set for each state in areas like poverty reduction, literacy, forest cover, etc., fostering greater ownership and accountability at the state level.

  7. Which of the following are associated with 'Planning' in India? The Finance Commission 1. The National Development Council 2. The Union Ministry of Rural Develop‐ 3. ment The Union Ministry of Urban Develop‐ 4. ment The Parliament 5. Select the correct answer using the code given below.

    Asked in: UPSC IAS 2014

    1. 1, 2 and 5 only
    2. 1, 3 and 4 only
    3. 2 and 5 only
    4. 1, 2, 3, 4 and 5
    Show answer

    Answer: C. 2 and 5 only

    - Historically, planning in India was centralized under the Planning Commission, approved by the National Development Council (NDC), and subject to parliamentary oversight and approval. - The Finance Commission deals with fiscal federalism and resource distribution, a distinct role from the planning commission/NDC's function of drafting and approving development plans. - Ministries implement planned programmes but are not the apex planning bodies.

Evolution of Planning in India (Five-Year Plans era)

  1. Arrange the following events in sequential order as they happened in India: 1. Mahalanobis Model 2. Plan Holiday 3. Rolling Plan Select the correct answer using the code given below.

    Asked in: UPSC CDS 2 2017

    1. 1, 2, 3
    2. 3, 2, 1
    3. 2, 3, 1
    4. 1, 3, 2
    Show answer

    Answer: A. 1, 2, 3

    The Mahalanobis Model was the basis for the Second Five Year Plan (1956-1961). The Plan Holiday occurred after the Third Five Year Plan (1966-1969). The Rolling Plan concept was introduced by the Janata Party government for the period 1978-1980.

  2. What was the period of India's 12th Five Year Plan ?

    Asked in: CGPSC Prelims Exam 2023

    1. 2001 – 2006
    2. 2007 – 2012
    3. 2012 – 2017
    4. None of the above
    Show answer

    Answer: C. 2012 – 2017

    The 12th Five Year Plan was the last of the Five Year Plans implemented in India. It aimed for "Faster, More Inclusive and Sustainable Growth".

  3. Which of the following Five Year Plans emphasized the need for establishing a "Socialist Pattern of Society" in India?

    Asked in: UPSC Geoscientist 2020

    1. 2nd Five Year Plan
    2. 3rd Five Year Plan
    3. 4th Five Year Plan
    4. 5th Five Year Plan
    Show answer

    Answer: A. 2nd Five Year Plan

    The socialist pattern of society implied that the state would play a dominant role in the economy, focusing on rapid industrialization, development of heavy industries, and expansion of the public sector to reduce inequalities and concentration of economic power. 34.

  4. First Five Year Plan: It was launched for the duration of 1951 to 1956, it was based on the Harrod-Domar model with a few modifications. Its main focus was on the agricultural development of the country. 2. Second Five Year Plan: It was made for the duration of 1956 to 1961, it was based on the P.C. Mahalanobis Model. Its main focus was on the industrial development of the country. 3. Third Five Year Plan: It was made for the duration of 1961 to 1966, this Plan is also called ‘Gadgil Yojana’. The main target of this Plan was to make the economy self reliant. The stress was laid on agriculture and the improvement in the production of wheat. 4. Eighth Five Year Plan: Its duration was from 1992 to 1997. The top priority was given to the development of human resources i.e. employment, education and public health. During this Plan, the Government launched the New Economic Policy of India. Which of the above statements are correct ?

    Asked in: GPSC Prelims CSP 2 2024

    1. Only 1 and 2
    2. Only 2 and 3
    3. Only 3 and 4
    4. 1, 2, 3 and 4 all are correct
    Show answer

    Answer: D. 1, 2, 3 and 4 all are correct

    - The Five Year Plans were central to India's planned economy approach after independence. - Each plan had specific objectives, models, and priorities based on the economic conditions and goals of the time.

  5. The Third Five Year Plan is also known as

    Asked in: GPSC Prelims CSP 2 2017

    1. Sen Yojna
    2. Gadgil Yojna
    3. Mahalnobia Yojna
    4. None of the above
    Show answer

    Answer: B. Gadgil Yojna

    The plan was named after the then Deputy Chairman of the Planning Commission, Dr. D. R. Gadgil.

  6. Which of the following statements is correct? (A) People's plan was formulated by MN Roy. (B) M. Vishweshwarayya - the Author of the book "The Planned Economy of India"

    Asked in: GPSC Prelims CSP 2 2019

    1. People's plan was formulated by MN Roy.
    2. M. Vishweshwarayya - the Author of the book "The Planned Economy of India"
    3. Both A and B
    4. Neither A nor B
    Show answer

    Answer: C. Both A and B

    - MN Roy was a radical humanist and political activist. - M. Visvesvaraya was a distinguished engineer and statesman. - Both were early proponents of economic planning for India.

  7. Match the following List-I with List-II: List-I List-II Major Recommenda‐ Plans/Committees tions a. Shifting from agricul‐ 1. Visvesvaraya Plan ture to Industrialization b. Sponsored by top in‐ 2. Bombay Plan dustries of Bombay c. Small-scale and cot‐ 3. Gandhian Plan tage industries 4. Economic Prod. Recommended for gramme Committee Planning Commission (1947)

    Asked in: GPSC Prelims CSP 2 2021

    1. 1 - a, 2 - b, 3 - c, 4 - d
    2. 1 - a, 2 - b, 3 - d, 4 - c
    3. 1 - b, 2 - a, 3 - d, 4 - c
    4. 1 - d, 2 - c, 3 - b, 4 - a
    Show answer

    Answer: A. 1 - a, 2 - b, 3 - c, 4 - d

    - Visvesvaraya Plan: Industrialization focus. - Bombay Plan: Industrialists' perspective on planning. - Gandhian Plan: Decentralized, rural focus, cottage industries. - Economic Programme Committee: Recommended Planning Commission.

Meaning and Scope of Economic Planning

  1. Which of the following statement(s) is(are) correct? 1. Let ABCD be a parallelogram, then ∠ ABC and ∠ BCD are complementary angles. 2. If ABCD is a rhombus, then diagonals AC and BD are perpendicular bisectors of each other.

    Asked in: GPSC Prelims CSP 1 2018

    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer

    Answer: B. Only 2

    - Adjacent angles in a parallelogram are supplementary. - Diagonals of a rhombus are perpendicular bisectors of each other.

  2. Three friends J, K and L are given a bowl with some marbles in it. J took one-third of the total marbles but put back four marbles in the bowl. Then K took one-fourth of the remaining marbles, but put back 3 marbles in the bowl. After that L took half of the remained marbles, but put back 2 marbles in the bowl. At that time 17 marbles were left. How many marbles were there originally in the bowl?

    Asked in: GPSC Prelims CSP 1 2023

    1. 42
    2. 45
    3. 54
    4. None of the above
    Show answer

    Answer: D. None of the above

    - This problem requires working backward from the final state to the initial state. - Let the number of marbles left at each stage be denoted by variables. - Let the number of marbles left at the very end be E = 17. - L's turn: L took half of the marbles remained after K's turn, and put back 2. Let the number of marbles before L's turn be M_L. L took M_L / 2. Marbles left after taking = M_L - M_L / 2 = M_L /

  3. L put back 2. Final number = M_L / 2 + 2. So, M_L / 2 + 2 = 17. M_L / 2 = 15. M_L = 30. There were 30 marbles before L took his share. This is the number of marbles left after K finished his turn. - K's turn: K took one-fourth of the marbles remained after J's turn, and put back 3. Let the number of marbles before K's turn be M_K. M_K is the number of marbles left after J finished. K took M_K / 4. Marbles left after taking = M_K - M_K / 4 = 3 M_K / 4. K put back 3. Number of marbles after K's turn = 3 M_K / 4 + 3. So, 3 M_K / 4 + 3 = 30. 3 M_K / 4 = 27. 3 M_K = 27 4 = 108. M_K = 108 / 3 = 36. There were 36 marbles before K took his share. This is the number of marbles left after J finished his turn. - J's turn: J took one-third of the total marbles, and put back 4. Let the original number of marbles be M_Total. J took M_Total / 3. Marbles left after taking = M_Total - M_Total / 3 = 2 M_Total / 3. J put back 4. Number of marbles after J's turn = 2 M_Total / 3 + 4. So, 2 M_Total / 3 + 4 = 36. 2 M_Total / 3 = 32. 2 M_Total = 32 3 = 96. M_Total = 96 / 2 = 48. - The original number of marbles was 48. - Checking the options: A) 42, B) 45, C) 54. None of these match the calculated original number (48). 112. Find out the wrong number in the series: 789, 645, 545, 481, 440, 429, 425

    Asked in: GPSC Prelims CSP 1 2023

    1. 440
    2. 425
    3. 645
    4. 545
    Show answer

    Answer: A. 440

    Number series questions often involve arithmetic operations (addition, subtraction), multiplication, division, or patterns based on squares, cubes, or prime numbers. Examining the differences between consecutive terms is a common strategy to find the pattern.

  4. Cylindrical cans of radius of 7 cm and height of 30 cm are placed in a rectangular box of dimension 76 cm × 46 cm × 45 cm. What is the maximum number of cans that can fit in the box?

    Asked in: GPSC Prelims CSP 1 2023

    1. 19
    2. 20
    3. 21
    4. None of the above
    Show answer

    Answer: D. None of the above

    To find the maximum number of identical objects that fit in a container, consider orienting the object's dimensions with the container's dimensions. For cylindrical objects, consider placing them upright or on their side, aligning the cylinder's height or diameter with the box dimensions. The number of objects along an edge is typically the floor of the box dimension divided by the object dimension in that direction. For circular bases in a rectangular area, simple grid packing ($\lfloor L/D \rfloor \times \lfloor W/D \rfloor$) provides a lower bound, and often the actual maximum, especially for small dimensions.

  5. The process of planning of Indian Economy is

    Asked in: APPSC Panchayat secretary Prelims 2016

    1. An open process
    2. A closed process
    3. An open or closed process depending on the plan
    4. Very difficult to state
    Show answer

    Answer: A. An open process

    - Planning in India involves consultation with stakeholders. - Transparency and participation are inherent aspects of planning in a democratic system. - While not always fully transparent or inclusive, the process leans towards 'open' rather than 'closed'.

  6. 'Planned Economy for India' — The book was written by

    Asked in: westbengal/WBCS Main 2019 Paper 5 2019

    1. Sir M. Visvesvarayya
    2. JL. Nehru
    3. SN Agarwal
    4. M.N. Roy
    Show answer

    Answer: A. Sir M. Visvesvarayya

    Sir M. Visvesvarayya, also known as Mokshagundam Visvesvarayya, was an influential figure who advocated for systematic economic planning for India's industrialization and development even before independence.

  7. Economic Planning means - The allocation of economic resources and the determination of production by market forces. - The use of monetary and fiscal policy to solve economic problems. - The allocation of economic resources and the determination of production on the basis of a plan - Government permission is necessary to establish an industry

    Asked in: Asst. Statistical Officer 1

    1. 1, 2 and 4
    2. 1, 3 and 4
    3. 2, 3 and 4
    4. 1, 2 and 3
    Show answer

    Answer: C. 2, 3 and 4

    Economic planning is a deliberate intervention by the state or an authority to guide or direct economic activity towards specific goals, rather than relying solely on market forces.

NITI Aayog's Role in Cooperative Federalism and Strategic Planning

  1. NITI Aayog has launched the 'Atal New India Challenge' that will provide grants of up to how much amount to innovative products and solutions?

    Asked in: BPSC Prelims Exam 63rd

    1. ₹ 2 crore
    2. ₹ 1 crore
    3. ₹ 1.5 crore
    4. ₹ 2.5 crore
    Show answer

    Answer: B. ₹ 1 crore

    - The Atal New India Challenge is part of NITI Aayog's Atal Innovation Mission. - It focuses on supporting innovative solutions to national problems. - Winning solutions receive grants for prototyping and deployment.

  2. Who is among the following associated with “PURA” model?

    Asked in: TNPSC CS Prelims 2019

    1. Dr. M.S. Swaminathan
    2. Dr. A.P.J. Abdul Kalam
    3. M.N. Roy
    4. B.S. Minhas
    Show answer

    Answer: B. Dr. A.P.J. Abdul Kalam

    - PURA model sought to integrate rural areas by providing connectivity through roads, electronic connectivity, and knowledge connectivity. - It also emphasized economic connectivity through developing markets. - The idea was to create rural hubs that were economically viable and offered opportunities, reducing distress migration to cities.

  3. The Atal Innovation Mission (AIM) is a flagship initiative set up by

    Asked in: UPPCS Prelims 2020

    1. Ministry of Human Resource Development
    2. NITI Aayog
    3. Ministry of Social Justice and Impowerment
    4. Ministry of Science and Technology
    Show answer

    Answer: B. NITI Aayog

    The Atal Innovation Mission (AIM) is a flagship initiative of the Government of India under the aegis of the NITI Aayog. It was launched to promote a culture of innovation and entrepreneurship across the country.

  4. The PM Gati Shakti - National Logistics Policy targets :

    Asked in: opsc 2025 2025

    1. Achieving net-zero carbon emissions in urban transport
    2. Integrating road, rail, port, and airport infra‐ structure for faster goods movement
    3. Promoting bullet train corridors
    4. Increasing domestic shipbuilding industry
    Show answer

    Answer: B. Integrating road, rail, port, and airport infra‐ structure for faster goods movement

    The PM Gati Shakti - National Logistics Policy primarily targets integrating road, rail, port, and airport infrastructure for faster goods movement. This is aimed at reducing logistics costs and improving efficiency.

Objectives of Economic Planning (Growth, Equity, Self-reliance, Poverty Alleviation)

  1. Though removal of unemployment is mentioned as one of the objectives of economic planning in all Five Year Plans, from which plan onward is serious concern shown for solving the unemployment problem ?

    Asked in: APSC CCE Prelims Exam 2018

    1. Third Five Year Plan
    2. Fourth Five Year Plan
    3. Fifth Five Year Plan
    4. Sixth Five Year Plan
    Show answer

    Answer: D. Sixth Five Year Plan

    While unemployment has been an objective throughout India's Five Year Plans, earlier plans focused more on economic growth as a means to generate employment indirectly. The Sixth Plan, however, explicitly focused on poverty alleviation and employment generation as direct objectives, launching specific schemes like the Integrated Rural Development Programme (IRDP) and the National Rural Employment Programme (NREP) to tackle unemployment and underemployment, particularly in rural areas.

  2. What is, the main objective of 12th Five Year Plan ?

    Asked in: APSC CCE Prelims Exam 2018 · UPSC IAS 2014

    1. Faster and more inclusive growth
    2. Faster sustainable inclusive growth
    3. Equality and social justice
    4. Faster more inclusive growth
    Show answer

    Answer: B. Faster sustainable inclusive growth

    The 12th Five Year Plan built upon the objectives of the 10th (2002-2007) and 11th (2007-2012) plans, which aimed for "Faster and More Inclusive Growth". The 12th Plan added the crucial dimension of "Sustainable" growth, reflecting growing concerns about environmental impact and long-term resource availability.

  3. The increase in the volume of imports during the Third Five Year Plan, that is from 1961-1962 to 1965-1966 was due to 1. Rapid industrialization necessitated larger imports of machinery, equipment industrial raw materials, etc. 2. The defence needs increased following aggression by China and Pakistan. 3. Extensive crop failure in 1965-66 necessitated the import of a large quantity of food grains. 4. Imports are anti-inflationary because they reduce the scarcity of consumer goods. Select the correct answer using the codes given below:

    Asked in: KPSC KAS Prelims 2014

    1. 1 and 2
    2. 1, 2 and 3
    3. 3 only
    4. 4 only
    Show answer

    Answer: B. 1, 2 and 3

  4. Rapid industrialization The Third Plan focused on building heavy industries, which required substantial imports of capital goods, machinery, and raw materials as India's domestic industrial base was still developing. 2. Defence needs This period witnessed conflicts with China (1962) and Pakistan (1965). Defence expenditure soared, leading to increased imports of arms, equipment, and related supplies. 3. Crop failure The severe drought and agricultural crisis in 1965-66 led to widespread food shortages, necessitating massive imports of food grains, particularly from the USA under the PL-480 program. These three factors significantly boosted the import bill and volume during the Third Plan. 129. Which one of the following statements regarding the objectives of the Second Five-Year Plan is not correct ?

    Asked in: UPSC NDA 1 2024

    1. Development of the basic and heavy industry sector
    2. Increase in national income to raise living standards
    3. Expansion of the consumer goods sector
    4. Expansion of employment opportunities
    Show answer

    Answer: C. Expansion of the consumer goods sector

    The Second Five-Year Plan (1956-1961), based on the Mahalanobis model, focused strongly on rapid industrialization, particularly emphasizing the development of basic and heavy industries (capital goods industries). Other key objectives included increasing national income to raise living standards, large-scale expansion of employment opportunities, and reducing income inequalities. The emphasis was on building the industrial base, with less direct focus on the immediate expansion of the consumer goods sector.

  5. The call for Garibi Hatao was incorporated in

    Asked in: UPSC NDA 2 2020

    1. Fourth Five Year Plan
    2. Fifth Five Year Plan
    3. Sixth Five Year Plan
    4. Seventh Five Year Plan
    Show answer

    Answer: B. Fifth Five Year Plan

    The slogan "Garibi Hatao Desh Bachao" (Remove Poverty, Save the Country) was given by Indira Gandhi during the 1971 general election. The objectives derived from this slogan, primarily poverty alleviation and achieving self-reliance, formed the core strategy and aims of the Fifth Five Year Plan (1974-1979).

  6. Which of the following was not a part of 11th five year plan inclusive growth strategy ?

    Asked in: UKPSC CS Prelims 2021

    1. Reduction in Poverty
    2. Extension of employment opportunity
    3. Reduction in gender inequality
    4. Strengthening of capital market
    Show answer

    Answer: D. Strengthening of capital market

    - Inclusive growth aims to ensure that the benefits of economic growth reach all sections of society, especially the poor and marginalized. - Key pillars of inclusive growth in the 11th Plan included poverty reduction, employment generation, education, health, rural development, and environmental sustainability.

  7. What was the priority of the First Five Year Plan ?

    Asked in: UPPSC Upper Mains 2011

    1. Industrialization
    2. Urbanization
    3. Development of Agriculture
    4. Spread of Education
    Show answer

    Answer: C. Development of Agriculture

    - The plan focused heavily on increasing agricultural production, irrigation, and power projects to support agriculture. - India faced severe food shortages at the time, making agriculture the most critical sector to address.

Planning Models and Strategies (e.g., Nehru-Mahalanobis Model)

  1. Prof. P. C. Mahalanobis's name is associated with the

    Asked in: APSC CCE Prelims Exam 2014

    1. First Five-Year Plan
    2. Second Five-Year Plan
    3. Third Five-Year Plan
    4. Fourth Five-Year Plan
    Show answer

    Answer: B. Second Five-Year Plan

    The Second Five-Year Plan (1956-1961) was based on the Mahalanobis model, which was a growth model focusing on boosting industrial production, particularly heavy industries, to achieve long-term economic self-sufficiency.

  2. First Five Year Plan of India was based on the

    Asked in: BPSC Prelims Exam 60 62rd WBCS Main Paper 5 2022

    1. Harrod Domar Model
    2. Mahalanobis Model
    3. Dadabhai Naoroji Model
    4. J.L. Nehru Model
    Show answer

    Answer: A. Harrod Domar Model

    The First Five Year Plan was based on the Harrod- Domar model.

  3. India's First Five Year Plan was based on economic model of

    Asked in: GPSC Prelims CSP 2 2017

    1. Ranis Fie
    2. Arthur Lewis
    3. R.F. Harrod
    4. P.C. Mahalnobis
    Show answer

    Answer: C. R.F. Harrod

    The Harrod-Domar model is a basic model of economic growth which suggests that the growth rate of GDP is proportional to the savings rate and inversely proportional to the capital-output ratio.

  4. The Second Five Year Plan that called for the establishment of Socialist pattern of society was commonly referred to as the

    Asked in: UPSC NDA 1 2015

    1. Harrod-Domar Plan
    2. Mahalanobis Plan
    3. Nehru Plan
    4. Peoples Plan
    Show answer

    Answer: B. Mahalanobis Plan

    - The Second Five Year Plan focused on rapid industrialization, with particular emphasis on the development of heavy industries. - This plan aimed at achieving a 'socialist pattern of society' through state control over key sectors. - P. C. Mahalanobis provided the theoretical and statistical foundation for this plan, emphasizing investment in basic and heavy industries.

  5. Which one of the following is not a feature of the Nehru-Mahalanobis model of development strategy ?

    Asked in: UPSC NDA 1 2016

    1. Development of capital goods industries
    2. Major involvement of the State in the eco‐ nomy
    3. Industrial deregulation and disinvestment in the public sector
    4. Enhancing the scope and importance of the public sector
    Show answer

    Answer: C. Industrial deregulation and disinvestment in the public sector

    - The model focused on rapid growth through the development of basic and heavy industries (capital goods industries). - It advocated for a command economy framework with major state intervention and planning. - The public sector was assigned a leading role in economic development. - Industrial deregulation and disinvestment are policies aimed at reducing state control and shrinking the public sector, which are antithetical to the Nehru- Mahalanobis model.

  6. The Nehru-Mahalanobis Strategy of Development was implemented for the first time by which one of the following Five-Year Plans?

    Asked in: UPSC NDA 2 2018

    1. First Five-Year Plan
    2. Second Five-Year Plan
    3. Third Five-Year Plan
    4. Seventh Five-Year Plan
    Show answer

    Answer: B. Second Five-Year Plan

    The Nehru-Mahalanobis strategy, focusing on rapid industrialization with an emphasis on the development of heavy industries, was the core approach adopted for the Second Five-Year Plan (1956-1961).

  7. The principal component(s) of Nehru-Mahalanobis strategy of economic development was/were 1. Restructuring economic dependency on metropolitan capitalism into independent economic development. 2. Transition from semi-feudal agriculture to capitalist farming. Select the correct answer using the code given below :

    Asked in: UPSC NDA 2 2019

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Show answer

    Answer: A. 1 only

    The Nehru-Mahalanobis strategy, primarily associated with the Second Five Year Plan (1956-61), focused heavily on rapid industrialization with an emphasis on basic and heavy industries within a mixed economy framework, dominated by the public sector. Statement 1, "Restructuring economic dependency on metropolitan capitalism into independent economic development," accurately reflects a core objective of this strategy: to build a self- reliant industrial base to reduce dependence on developed Western economies for manufactured goods and technology through import substitution. Statement 2, "Transition from semi-feudal agriculture to capitalist farming," describes a process of agricultural transformation, which was a separate, albeit related, goal often pursued through land reforms during this period. However, the principal component of the Nehru-Mahalanobis strategy of economic development specifically refers to the industrial planning model focused on heavy industries for self-reliance, making statement 1 the correct principal component related to the strategy itself.

Regional Disparities and Balanced Regional Development

  1. Which of the following was the earliest regional planning exercise in India ?

    Asked in: OPSC CS Prelims 2016

    1. National Capital Region Plan
    2. Dandakaranya Area Plan
    3. Damodar Valley Project
    4. Bhakra-Nangal Project
    Show answer

    Answer: C. Damodar Valley Project

    The Damodar Valley Project (DVP), established in 1948, is widely regarded as the first major multi- purpose river valley project and an early example of integrated regional development planning in independent India. It was modelled after the Tennessee Valley Authority (TVA) in the United States and aimed at flood control, irrigation, power generation, and industrial development in the Damodar River basin, covering parts of West Bengal and Bihar (now Jharkhand).

  2. In which Five-Year plan, balanced regional development was emphasized as one of the major objectives of the planning excercise?

    Asked in: WBCS Main Paper 3 2021

    1. Second
    2. Third
    3. Fourth
    4. Fifth
    Show answer

    Answer: C. Fourth

    - Plan Period: Fourth Five Year Plan (1969-1974). - Objective: Balanced regional development recognized as a major goal. - Context: Response to increasing regional disparities observed during earlier plans.

  3. Which state of India pioneered the idea of a state level techno-economic survey carried out in 1957-1958, with the technical help of Stanford Research Institute of California (U.S.A.) ?

    Asked in: Assistant Town Planner (Pre.) Exam 2023

    1. West Bengal
    2. Orissa
    3. Bihar
    4. Madhya Pradesh
    Show answer

    Answer: A. West Bengal

    West Bengal was the first state in India to undertake a state-level techno-economic survey with foreign technical assistance in 1957-58.

Resource Mobilization for Planning

  1. The formulation and success of a plan require the following : a. Planning Commission, Statistical data, Objectives b. Fixation of Targets and Priorities, Mobilisation of Resources c. Incorrupt and Efficient Administration, Proper Development Policy d. Economy in Administration, Education base

    Asked in: MPSC CS Prelims 2023

    1. a only
    2. a and b
    3. a, b and c
    4. a, b, c and d
    Show answer

    Answer: D. a, b, c and d

    Planning involves setting goals (objectives, targets, priorities), assessing the current situation (statistical data), devising strategies (proper development policy), securing necessary means (mobilisation of resources, economy in administration), executing through a capable body (Planning Commission, efficient administration), and ensuring the system can absorb and contribute to development (education base). The success depends on the interplay and presence of these elements.

  2. National Investment and Infrastructure Fund is registered under which one of the following Acts ?

    Asked in: UPSC Combined Section Officer 2024

    1. Companies Act, 2013
    2. RBI Act, 1934
    3. Indian Trusts Act, 1882
    4. Cooperative Societies Act, 1912
    Show answer

    Answer: C. Indian Trusts Act, 1882

    - NIIF is an investment vehicle focused on infrastructure. - It is structured as a trust. - Registered under the Indian Trusts Act, 1882.

  3. Finance for the Indian plans was obtained from

    Asked in: WBCS Main Paper 5 2023

    1. Domestic savings
    2. Public borrowing
    3. Deficit financing
    4. All of the above
    Show answer

    Answer: D. All of the above

    Financing for plans involved both internal and external sources, with emphasis on domestic resource mobilisation through savings and borrowing. Deficit financing was used, especially in earlier plans, but later became a concern due to inflationary pressures.

Role of State and Market in Modern Economic Planning

  1. When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

    Asked in: UPSC IAS 2015

    1. India's GDP growth rate increases drastically
    2. Foreign Institutional Investors may bring more capital into our country
    3. Scheduled Commercial Banks may cut their lending rates
    4. It may drastically reduce the liquidity to the banking system
    Show answer

    Answer: C. Scheduled Commercial Banks may cut their lending rates

    SLR is the percentage of Net Demand and Time Liabilities (NDTL) that commercial banks must maintain as liquid assets (cash, gold, government securities). Reducing SLR means banks are required to hold a smaller proportion of their deposits in these prescribed liquid assets. This frees up a larger amount of funds that banks can use for lending to the public and businesses.

  2. The planning process in the industrial sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period. Which one of the following is true in this regard?

    Asked in: UPPCS Prelims 1999

    1. With the advent of liberalisation, industrial investments/development have largely been placed within the domain of private and multinational sectors
    2. With markets assuming a central place, the role of central planning in many sectors has been rendered redundant
    3. The focus of planning has shifted to sectors like human resource development, infrastructure, population control and welfare
    4. The nation’s priorities have shifted away from industrial development to rural development
    Show answer

    Answer: A. With the advent of liberalisation, industrial investments/development have largely been placed within the domain of private and multinational sectors

    The economic reforms initiated in India in the early 1990s involved liberalisation, privatisation, and globalisation (LPG). A key aspect was reducing the role of the state in industrial activity and promoting the private sector (both domestic and foreign). As a result, a large portion of industrial investment and development shifted from public sector enterprises and state direction to private and multinational companies. Since these entities primarily operate based on market forces and their own strategies rather than detailed state plans, the overall state "planning process" for the industrial sector became significantly less important.

  3. The central economy in market research is solved by

    Asked in: ae 2024

    1. Market mechanism
    2. Planning authority
    3. Demand for goods
    4. Supply of goods
    Show answer

    Answer: A. Market mechanism

    The market mechanism, driven by the forces of supply and demand and price signals, is the core principle that resolves the fundamental economic questions in a market economy.

Sectoral Planning (Agriculture, Industry, Infrastructure, Social Sector)

  1. In Pradhan Mantri Shram Yogi Maan- Dhan Scheme, each subscriber shall receive the minimum assured pension of _____ per month after attaining the age of 60 years.

    Asked in: BPSC Prelims Exam 65th

    1. ₹3,500
    2. ₹2,000
    3. ₹3,000
    4. ₹1,500
    Show answer

    Answer: C. ₹3,000

    The scheme is a voluntary and contributory pension scheme for unorganised workers.

  2. A basket contains 6 white, 7 red and 2 blue balls. If two balls are drawn simultaneously, what is the probability that both are of different color ?

    Asked in: GPSC Prelims CSP 1 2017

    1. 2/15
    2. 68/155
    3. 68/105
    4. 7/15
    Show answer

    Answer: C. 68/105

    - Probability is calculated as (Number of favorable outcomes) / (Total number of possible outcomes). - Combinations (C(n, k)) are used to calculate the number of ways to choose items from a set without regard to order. - "Different colors" means the two balls drawn are not of the same color.

  3. Rs. 1,380 are divided among A, B and C. The shares received by A, B and C were Rs. 5 less, Rs. 10 less and Rs. 15 less respectively, their shares would be in the ratio of 2 : 3 : 4. What is A's Share ?

    Asked in: GPSC Prelims CSP 1 2017

    1. Rs. 285
    2. Rs. 305
    3. Rs. 315
    4. Rs. 325
    Show answer

    Answer: B. Rs. 305

    - Set up equations based on the given sum and the ratio of adjusted shares. - Express original shares in terms of a common ratio factor. - Solve for the ratio factor using the total sum equation. - Calculate the required share using the ratio factor.

  4. What is the approximate value of (15.01)² × √730 ?

    Asked in: GPSC Prelims CSP 1 2017

    1. 6125
    2. 6075
    3. 6025
    4. 5975
    Show answer

    Answer: B. 6075

    Approximate 15.01 by 15 and √730 by the square root of the nearest perfect square. 15² = 225. 27² =

  5. √730 is very close to √729 = 27. Using these approximations, the expression is approximately 15² × 27 = 225 × 27. 182. The sum of the present ages of A, B and C is 180 years. 12 years ago their ages were in the ratio of 1:2:3. What is the present age of C?

    Asked in: GPSC Prelims CSP 1 2018

    1. 66
    2. 72
    3. 84
    4. None of the above
    Show answer

    Answer: C. 84

    - Calculate the sum of ages in the past based on the sum of present ages and the time difference. - Represent the ages in the past using the given ratio and a variable ($x$). - Set up an equation using the sum of ages in the past to find the value of the variable. - Calculate the individual ages in the past and then find the present ages by adding the time difference.

  6. During which of the following Five-Year Plans did the government of India implement the National Project on organic farming for production, promotion, market development of organic farming in India?

    Asked in: GPSC Prelims CSP 2 2021

    1. Ninth Plan
    2. Tenth Plan
    3. Eleventh Plan
    4. None of the above
    Show answer

    Answer: B. Tenth Plan

    - The National Project on Organic Farming (NPOF) was launched by the Government of India in October 2004. - The Tenth Five-Year Plan covered the period from 2002 to 2007. - Since the launch year of the NPOF (2004) falls within the timeline of the Tenth Five-Year Plan, it was implemented during this period.

  7. Which of the following are the models of public-private partnership? 1. Build-Operate-Transfer (BOT) 2. Build-Own-Operate (BOO) 3. Build-Operate-Lease-Transfer (BOLT) 4. Design-Build-Finance-Operate- Transfer (DBFOT) Select the correct answer using the codes given below :

    Asked in: GPSC Prelims CSP 2 2023

    1. 1, 2 and 3
    2. 2, 3 and 4
    3. 1, 3 and 4
    4. All of the above
    Show answer

    Answer: D. All of the above

    Public-Private Partnership (PPP) involves collaboration between government and private sector entities for the financing, construction, and operation of infrastructure projects or public services. Various models exist, differing in the allocation of responsibilities, risks, and ownership. - BOT (Build- Operate-Transfer): Private entity builds, operates for a concession period, then transfers to public authority. - BOO (Build-Own-Operate): Private entity builds, owns, and operates the facility. Ownership may or may not transfer later. - BOLT (Build-Operate-Lease-Transfer): Private entity builds, operates, leases the asset to the public authority, and then transfers ownership. - DBFOT (Design-Build-Finance-Operate-Transfer): A comprehensive model where the private partner is responsible for design, construction, financing, operation, and eventual transfer. All four models represent different arrangements under the PPP framework.

Shift from Planning Commission to NITI Aayog: Genesis, Structure, and Functions

  1. Consider the following statements : (a) Planning Commission of India was replaced by NITI Aayog in January, 2015. (b) Normative Planning is a guiding principle of NITI Aayog.

    Asked in: MPSC CS Prelims 2020

    1. (a) only is correct
    2. (b) only is correct
    3. both (a) and (b) are correct
    4. both (a) and (b) are incorrect
    Show answer

    Answer: C. both (a) and (b) are correct

    NITI Aayog was established to serve as a policy think tank for the Government of India and state governments, replacing the centrally planned approach of the Planning Commission with a more consultative and cooperative model.

  2. 122) Planning Commission was setup in the year:

    Asked in: APPSC Draughtman 2008

    1. 1947
    2. 1948
    3. 1950
    4. 1957
    Show answer

    Answer: C. 1950

    The Planning Commission was instrumental in shaping India's economic development trajectory for over six decades. It was replaced by the National Institution for Transforming India (NITI Aayog) on January 1, 2015.

  3. NITI Aayog came into operation on

    Asked in: WBCS Main Paper 5 2022

    1. 1st April, 2014
    2. 1st April, 2015
    3. 1st January, 2015
    4. 1st January, 2016
    Show answer

    Answer: C. 1st January, 2015

    NITI Aayog is a policy think tank of the Government of India, established with the aim to achieve sustainable development goals with cooperative federalism by involving State Governments in the economic policy-making process.

  4. Who was the last Deputy Chairman of the Planning Commission?

    Asked in: WBCS Main Paper 5 2023

    1. Shri R.P. Sinha
    2. Shri Shyamal Ghosh
    3. Shri Vinay Kohli
    4. Shri Montek Singh Ahluwalia
    Show answer

    Answer: D. Shri Montek Singh Ahluwalia

    The Planning Commission was a non-constitutional body in India responsible for formulating five-year plans for the country's development. It was dissolved on January 1, 2015, and replaced by the NITI Aayog. Shri Montek Singh Ahluwalia served as the Deputy Chairman of the Planning Commission from 2004 until its dissolution in 2014 (his term ended slightly before the formal dissolution as the new government took over). He was the last person to hold this office.

  5. What has been brought in place of the Planning Commission?

    Asked in: WBCS Main Paper 5 2023

    1. NABARD
    2. SEBI
    3. NITI Ayog
    4. National Institute of Planning
    Show answer

    Answer: C. NITI Ayog

    NITI Aayog serves as a policy think tank for the Government of India, replacing the centralized planning approach of the Planning Commission with a more collaborative and 'bottom-up' approach involving states.

  6. Planning Commission has been scrapped on

    Asked in: westbengal/WBCS Main 2019 Paper 5 2019

    1. January 1, 2015
    2. August 13, 2014
    3. January 22, 2015
    4. July 2, 2015
    Show answer

    Answer: A. January 1, 2015

    The announcement to scrap the Planning Commission was made by Prime Minister Narendra Modi on Independence Day, August 15, 2014. However, the official gazette notification setting up NITI Aayog in place of the Planning Commission came into effect on January 1, 2015.

  7. What was the reason for ending the Five- Year Plan process in India? (A) It was felt that for a diversed country like India a centralized planning could not work beyond a certain point (B) The States needed to have a greater say in planning their expenses (C) The planning process was mostly about the public sector and private sector was left out (D) All of the above

    Asked in: ARO GS 252022 74 2024

    1. It was felt that for a diversed country like India a centralized planning could not work beyond a certain point
    2. The States needed to have a greater say in planning their expenses
    3. The planning process was mostly about the public sector and private sector was left out
    4. All of the above
    Show answer

    Answer: D. All of the above

    The transition from Five-Year Plans to a more market-oriented and decentralized economic model in India was driven by the realization that centralized planning had limitations in addressing the complexities of a diverse economy. The need for greater state autonomy and private sector inclusion were significant considerations.

Sustainable Development Goals (SDGs) and National Planning

  1. In India which of the following Five Year Plans was launched with a focus on sustainable growth?

    Asked in: UPPCS Prelims 2018

    1. 9th
    2. 10th
    3. 11th
    4. 12th
    Show answer

    Answer: D. 12th

    - The Indian Five Year Plans were instruments of economic planning from 1951 to 2017. - The focus of plans evolved over time, from basic infrastructure and heavy industry to poverty alleviation, employment, and eventually, inclusion and sustainability.

Vision, Strategy, and Three-Year Action Agenda by NITI Aayog

  1. Which one of the following is not a part of 10-point vision for the decade as per Union Budget 2019-20?

    Asked in: GPSC Prelims CSP 2 2019

    1. Blue Economy
    2. Water, Water Management, Clean Rivers
    3. Making Digital India reach every sector of the economy
    4. Electronic fund raising platform under the regulatory ambit of SEBI
    Show answer

    Answer: D. Electronic fund raising platform under the regulatory ambit of SEBI

    The Union Budget 2019-20 outlined a 10-point vision covering broad areas such as infrastructure, digital economy, environment, skills, manufacturing, water, blue economy, space, food security, and health/social well-being.

  2. 'India Vision 2020' is prepared by

    Asked in: MPPSC CS Prelims 2017

    1. S. P. Gupta Committee
    2. Panth Committee
    3. Malhotra Committee
    4. Narasimham Committee
    Show answer

    Answer: A. S. P. Gupta Committee

    It was prepared by the Planning Commission based on a report submitted by an expert group headed by Dr. S. P. Gupta.

  3. Which of the following content is not covered while preparing a DPR?

    Asked in: Asst. Town Planner 2022

    1. Project Phasing
    2. Project Financial Structuring
    3. Project Cost
    4. Project Progress
    Show answer

    Answer: D. Project Progress

    A DPR is a comprehensive document that includes details about the project's scope, objectives, technical aspects, financial viability, phasing, and cost. Project progress is a post- implementation metric.