Question

Which Five-Year Plan aimed to achieve self-reliance and aimed at 'growth with stability'?

• A. Second Plan
• B. Seventh Plan
• C. Fourth Plan
• D. Sixth Plan

Answer 1

Answer:

C. Fourth Plan

The Fourth Five-Year Plan (1969-1974)

• This plan was formulated with the primary objective of achieving self-reliance and ensuring 'growth with stability'.
• Key economic goals included:
  • Raising the national income by 5.5% annually.
  • Increasing agricultural production to achieve self-sufficiency in food grains.
  • Expanding employment opportunities.
  • Reducing disparities in income and wealth.
  • Promoting social justice.
• Background and Context: The Fourth Plan period was preceded by three Annual Plans (1966-69) due to the Indo-Pakistani War of 1965 and the subsequent devaluation of the rupee. This period witnessed significant economic challenges, including drought and inflationary pressures, which influenced the cautious approach of the Fourth Plan.
• Key Initiatives:
  • Emphasis on increasing the production of food grains through the Green Revolution.
  • Focus on industrial development, particularly in sectors like fertilizers, petrochemicals, and electronics.
  • Introduction of the 'Garibi Hatao' (Remove Poverty) slogan and programs aimed at poverty alleviation, though their full impact was more pronounced in subsequent plans.
  • Expansion of the banking sector with the nationalization of 14 major banks in 1969, aimed at directing credit towards priority sectors and reducing economic power concentration.
• Significance for 'Self-Reliance': The plan aimed to reduce dependence on foreign aid by increasing domestic production and savings. Efforts were made to boost exports and substitute imports, reflecting a commitment to economic independence.
• 'Growth with Stability': This dual objective sought to balance rapid economic expansion with measures to control inflation and maintain macroeconomic stability, which was crucial given the economic conditions of the preceding years.