Five Year Plans
Key Concepts & Formulas
| # | Concept | Quick Explanation |
|---|---|---|
| 1 | Plan Holiday | 1966-69; three Annual Plans after 3rd plan failure due to wars & drought |
| 2 | Rolling Plan | 1978-80; introduced by Janata govt.; yearly targets inside 5-yr frame |
| 3 | Liberalisation Plan | 8th Plan (1992-97); first plan after 1991 reforms; “human development” focus |
| 4 | Growth Rate Formula | Average annual growth = [(GDPend ÷ GDPstart)^(1/5) – 1] × 100 |
| 5 | NITI Aayog | 1 Jan 2015; replaced Planning Commission; cooperative & competitive federalism |
| 6 | Gadgil Formula | 1969; formula to distribute Central assistance to States based on population (60%), performance (10%), etc. |
10 Practice MCQs
1. Which Five-Year Plan was terminated one year early because of the 1962 & 1965 wars?
- A) Second Plan - B) Third Plan - C) Fourth Plan - D) Fifth Plan **Answer:** B **Solution:** Third Plan (1961-66) was cut short to 1965-66. **Shortcut:** “Third—wars—threw it out.” **Tag:** Timeline2. The slogan “Garibi Hatao” was first prominently linked with which plan?
- A) Fourth Plan - B) Fifth Plan - C) Sixth Plan - D) Seventh Plan **Answer:** B **Solution:** Fifth Plan (1974-79) adopted this slogan. **Shortcut:** 5 fingers push poverty (Garibi) away. **Tag:** Slogan3. Which plan period is known as “Plan Holiday”?
- A) 1951-56 - B) 1966-69 - C) 1974-79 - D) 1980-85 **Answer:** B **Solution:** Three Annual Plans 1966-69. **Shortcut:** 6-9… no five (plan) line. **Tag:** Timeline4. The highest targeted GDP growth rate (8.5%) was set in which plan?
- A) 10th Plan - B) 11th Plan - C) 12th Plan - D) 8th Plan **Answer:** B **Solution:** 11th Plan (2007-12) target 8.5% (actual ~8%). **Shortcut:** 11 looks like two tall pillars—high target. **Tag:** Growth5. Who was the first Deputy Chairman of Planning Commission?
- A) C. D. Deshmukh - B) V. T. Krishnamachari - C) Gulzarilal Nanda - D) P. C. Mahalanobis **Answer:** C **Solution:** Gulzarilal Nanda (1951). **Shortcut:** G-Nanda—Got Number-1 post. **Tag:** Person6. The Rolling Plan concept was introduced by which government?
- A) Indira Gandhi - B) Morarji Desai (Janata Party) - C) Rajiv Gandhi - D) V. P. Singh **Answer:** B **Solution:** Janata govt. 1978-80. **Shortcut:** Jana-“roll”-ta. **Tag:** Concept7. Which plan first accorded “priority” to Information Technology & telecom?
- A) 7th Plan - B) 8th Plan - C) 9th Plan - D) 10th Plan **Answer:** B **Solution:** 8th Plan (1992-97) post-liberalisation. **Shortcut:** 8 looks like spectacles—IT guys. **Tag:** Sector8. NITI Aayog was formed replacing Planning Commission in the year
- A) 2014 - B) 2015 - C) 2016 - D) 2013 **Answer:** B **Solution:** 1-1-2015. **Shortcut:** “New Year 15—New body.” **Tag:** Timeline9. The Gadgil Formula relates to
- A) Industrial licensing - B) Central assistance to States - C) Poverty estimation - D) Tax devolution **Answer:** B **Solution:** Distribution of plan assistance among states. **Shortcut:** Gad-gil = Give-give (to states). **Tag:** Formula10. India’s first Five-Year Plan was largely based on which model?
- A) Harrod-Domar - B) Mahalanobis - C) Feldman - D) Lewis **Answer:** A **Solution:** Harrod-Domar capital-output ratio. **Shortcut:** “First—Harrod.” **Tag:** Model5 Previous Year Questions
1. The Planning Commission of India was established in [RRB NTPC 2021]
- A) 1947 - B) 1950 - C) 1951 - D) 1952 **Answer:** B (15 March 1950)2. Which Five-Year Plan is also called “Mahalanobis Plan”? [RRB Group-D 2019]
- A) First - B) Second - C) Third - D) Fourth **Answer:** B3. The strategy of “heavy-industry based growth” was adopted in [RRB NTPC 2016]
- A) 1st Plan - B) 2nd Plan - C) 5th Plan - D) 7th Plan **Answer:** B4. Plan Holiday period in India was [RRB NTPC 2021]
- A) 1962-65 - B) 1966-69 - C) 1971-74 - D) 1980-83 **Answer:** B5. Who was the last Deputy Chairman of Planning Commission? [RRB ALP 2018]
- A) Manmohan Singh - B) Pranab Mukherjee - C) Montek Singh Ahluwalia - D) Arvind Panagariya **Answer:** CSpeed Tricks & Shortcuts
| Situation | Shortcut | Example |
|---|---|---|
| Remember Plan start years | Add 5 except 1966-69 break | 1951 → 1956 → 1961 → (gap) → 1969 → 1974… |
| Plans vs slogans | 5→Garibi, 7→Removal of poverty, 8→Employment | 5 fingers remove Garibi |
| Rolling vs Annual | Rolling = yearly inside 5-yr frame (1978-80); Annual = separate each year (1966-69) | Roll = wheel inside frame |
| Highest growth target | 11th Plan (8.5%) | Two 1’s look like tall pillars—high target |
| NITI vs PC | NITI = 2015, cooperative federalism; PC = 1950, command style | NITI = New IT-era body |
Common Mistakes to Avoid
| Mistake | Why Students Make It | Correct Approach |
|---|---|---|
| Confuse Plan Holiday & Rolling Plan | Both deviate from regular 5-yr cycle | Holiday = 1966-69 (no plan), Rolling = 1978-80 (plan every yr) |
| Mix 2nd & 3rd Plan models | Heavy industry in both | 2nd = Mahalanobis model; 3rd = same continued but wars disrupted |
| Think 1991 reforms started in 7th Plan | 7th ended 1990; reforms mid-1991 | 8th Plan (1992-97) is first post-reform |
| Misremember NITI Aayog year | Recall 2014 elections | Formed 1 Jan 2015 (next calendar year) |
| Gadgil vs Finance Commission | Both deal with money | Gadgil = Plan assistance; FC = divisible pool taxes |
Quick Revision Flashcards
| Front | Back |
|---|---|
| Plan Holiday years | 1966 – 1969 (three Annual Plans) |
| First Plan model | Harrod-Domar |
| Mahalanobis Plan | Second Five-Year Plan (1956-61) |
| Liberalisation Plan | Eighth Plan (1992-97) |
| Rolling Plan period | 1978-80 (Janata govt.) |
| Target growth 8.5% | 11th Plan (2007-12) |
| NITI Aayog born | 1 Jan 2015 |
| Last Deputy Chairman, PC | Montek Singh Ahluwalia |
| Gadgil Formula use | Devolution of Central plan aid to States |
| “Garibi Hatao” linked plan | Fifth Plan |
BETA
