Q1. What was meant by the term 'commanding heights of the economy' in the second five year plan of India?
- (a) Complete control over the vital industries by government which are important for economy.
- (b) Complete control on the economy by the private players.
- (c) Promotion of free trade agreement.
- (d) Promotion of foreign direct investment in vital industries.
Answer & solution
Answer: (a) Complete control over the vital industries by government which are important for economy.
Why other options are incorrect:
- Complete control by private players: This is the opposite; the concept involved state, not private, control over vital industries.
- Promotion of free trade agreement: Unrelated to this concept; the Second Plan focused on import substitution, not free trade.
- Promotion of FDI in vital industries: The concept emphasised state ownership, not foreign investment, in key sectors.