Planning and NITI Aayog PYQs – Economics, SSC & Railway

Correct Answer: Option 3 – 1951
India's First Five-Year Plan (1951–1956) was launched in 1951, formulated by the Planning Commission under Prime Minister Jawaharlal Nehru. It focused primarily on agriculture, land reforms, and irrigation, using the Harrod-Domar growth model.
Option 1 (1947): The year of India's independence; the Planning Commission was not yet set up.
Option 2 (1950): The Planning Commission was established in 1950, but the plan was formally launched in 1951.
Option 4 (1955): The Second Five-Year Plan was launched in 1956; 1955 is incorrect.

Correct Answer: Option 2 – Second Five Year Plan
The Second Five-Year Plan (1956–61) is known as the Mahalanobis Plan, named after Prof. P.C. Mahalanobis (founder of the Indian Statistical Institute, Kolkata) who was its chief architect. The plan was based on the Mahalanobis two-sector model (or four-sector model), which emphasised rapid industrialisation with heavy industries and capital goods as the engine of growth. Key features: heavy investment in public sector industries (steel plants at Bhilai , Durgapur, Rourkela); development of infrastructure; import substitution. The Second Plan shifted India's development strategy from agriculture-first (First Plan) to industry-first.
Option 1 (First Five Year Plan): First Plan (1951–56) was agriculture-focused, based on the Harrod-Domar model, drafted by K.N. Raj — not called the Mahalanobis Plan.
Option 3 (Third Five Year Plan): Third Plan (1961–66) — 'Gadgil Plan' or 'Plan with a human face'; disrupted by 1962 Sino-India War and 1965 Indo-Pak War.
Option 4 (Fifth Five Year Plan): Fifth Plan (1974–79) focused on poverty alleviation ( Garibi Hatao) and self-reliance — not the Mahalanobis Plan.

Correct Answer: Option 3 – Small and Cottage industries
The Seventh Five-Year Plan (1985–90), implemented under Rajiv Gandhi's government, placed major emphasis on Small and Cottage industries (Small Scale Industries/SSI and village industries) for employment generation. The plan's theme was 'Food, Work, and Productivity.' Small and cottage industries were prioritised because they are labour-intensive , require less capital per job created, are spread across rural and semi-urban areas, and help in decentralising economic activities. The plan significantly increased allocation for SSI development to absorb the large workforce.
Option 1 (Heavy Industries): Heavy industries were emphasised in the Second and Third Five-Year Plans — not specifically the 7th plan's focus for job creation.
Option 2 (IT sector): India's IT industry boom came in the 1990s–2000s, after the 7th Plan's period.
Option 4 (Oil and Gas sector): Not a primary focus for mass employment in the 7th Plan.

Correct Answer: Option 2 – Soviet Union, UK, and West Germany
During India's Second Five-Year Plan (1956–61), which focused on rapid industrialization (Nehru- Mahalanobis model), three major steel plants were established with foreign assistance: Bhilai Steel Plant (Chhattisgarh) — built with Soviet Union (USSR) assistance; Durgapur Steel Plant (West Bengal) — built with UK assistance; Rourkela Steel Plant (Odisha) — built with West Germany assistance.
Option 1 (USA, Japan, UK): The USA had limited involvement in India's heavy industry setup during the Second Plan period.
Option 3 (China and Bangladesh): Not involved in India's industrial development during this period.
Option 4 (France and New Zealand): Not involved in India's steel plant establishment.