Q. Consider the following statements:
1.The First five-year plan was accorded the highest priority to agriculture including irrigation and power projects.
2.The second five-year plan was prepared by Harrod – Domar.
3.Due to wars with China and Pakistan third five-year plan failed to meet its plan targets.
Choose the correct answer from below given codes:

[A] 1 only

[B] 1 and 2 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: C
Notes:

Explanation: First Plan: The period for this plan was 1951–56. As the economy was facing the problem of large-scale food grains import (1951) and the pressure of price rise, the plan accorded the highest priority to agriculture including irrigation and power projects.

  • About 44.6 per cent of the plan outlay went in favour of the public sector undertakings (PSUs).
  • The Plan was launched with all the lofty ideals of socio-economic development, which had frustrating outcomes in the following years.

Second Plan: The plan period was 1956–61. The strategy of growth laid emphasis on rapid industrialization with a focus on heavy industries and capital goods.

  • The plan was developed by Professor Mahalanobis. Due to the assumption of a closed economy, shortages of food and capital were felt during this Plan.

Third Plan: The Plan period was 1961–65. The Plan specifically incorporated the development of agriculture 67 as one of the objectives of planning in India besides, for the first times, considering the aim of balanced, regional development.

  • Enough misfortunes awaited this plan—two wars, one with China in 1961– 62 and the other with Pakistan in 1965–66 along the Gujarat border and a severe drought-led famine in 1965–66 had to be faced.
  • Due to heavy drain and diversion of funds, this plan utterly failed to meet its targets.

Source: TMH Ramesh Singh