With reference to India's Five-Year Plans, which of the following statements is/are correct?
- 1.From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries.
- 2.The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
- 3.In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.
Select the correct answer using the code given below.
Answer & explanation
Answer: (a) 1 and 2 only
Statements 1 and 2 are correct. The Second Plan (1956-61) made heavy and capital-goods industries the core of its strategy, and the Fourth Plan (1969-74) set out to reduce the concentration of income, wealth and economic power. UPSC's key treats statement 3 as wrong.
- ✓ 1. The Second Plan document stresses that basic and capital goods industries are 'major determinants of the rate of growth' and says it is desirable to go farthest in developing heavy and capital goods industries. This was the industrialisation strategy of the Second Plan.
- ✓ 2. The Fourth Plan document says that benefits of development must reach the less privileged and there should be 'progressive reduction of the concentration of incomes, wealth and economic power'. It also noted no sign of any reduction in that concentration so far.
- ✗ 3. UPSC's official key treats this statement as incorrect; we could not confirm the detail from an official source, so we do not explain it here.
Remember · Second Plan: heavy and capital-goods industry. Fourth Plan: reduce concentration of wealth and economic power.
Sources
- Second Five Year Plan, Chapter 2 (Planning Commission, archived copy) ↗ “It is desirable to aim at proceeding farthest in the direction of developing heavy and capital goods industries which conform to this criterion.”
- Fourth Five Year Plan, Chapter 1 (Planning Commission, archived copy) ↗ “there should be progressive reduction of the concentration of incomes, wealth and economic power. … purposeful policies of public financial institutions and the nationalised banks are expected to play a significant role in this regard.”
Question and answer: UPSC's official GS Paper I (2019, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 1 Oct 2026 (how we verify). ·