Question

During which five year plan did India opt for a mixed economy?

• A. Fourth Five Year Plan
• B. Second Five Year Plan
• C. Third Five Year Plan
• D. First Five Year Plan

Answer 1

Answer:

B. Second Five Year Plan

Second Five-year plan (1956 to 1961) • The second plan was conceived in an atmosphere of economic stability. • It was felt agriculture could be accorded lower priority. • Industries got more importance in the 2nd five-year plan. The focus was mainly on heavy industries. • The Indian government boosted the manufacturing of industrial goods in the country. • This was done primarily to develop the public sector. • The Plan Focussed on rapid industrialization- heavy & basic industries. • Advocated huge imports through foreign loans. • Therefore, the Indian Government adopted a mixed economy during the second five-year plan. Hence, Option 2 is correct. • The Industrial Policy 1956 was based on the establishment of a socialistic pattern of society as the goal of economic policy. • Acute shortage of forex led to pruning of development targets, the price rise was also seen (about 30%) vis a vis decline in the earlier Plan & the 2nd FYP was only moderately successful.