What was the primary focus of India's First Five Year Plan ?
- AOption (a)
Development of heavy and basic industries
- BOption (b)
Agricultural development, including irrigation and power projects
- COption (c)
Expansion of the service sector and IT industries
- DOption (d)
Poverty alleviation and employment generation programs
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Correct answer
Agricultural development, including irrigation and power projects
Why this answer is correct
The correct answer is Agricultural development, including irrigation and power projects.
Key Points
- The First Five-Year Plan of India was launched for the period 1951 to 1956 by the then Prime Minister Jawaharlal Nehru, marking the beginning of structured economic planning in independent India.
- The plan was based on the Harrod-Domar model, which suggested that economic growth depends on the level of savings and the capital-output ratio.
- The primary objective was to address the acute food shortage and inflation that plagued the country following World War II and the Partition of 1947.
- Agriculture was prioritized to achieve self-sufficiency in food grains, with approximately 27% to 31% of the total plan outlay allocated to Agriculture and Community Development, including irrigation and energy sectors.
- Significant long-term infrastructure projects were initiated during this period, including major multipurpose dams like the Bhakra-Nangal, Hirakud, Mettur Dam, and the Damodar Valley Corporation.
- The plan also emphasized the Community Development Programme (launched in 1952) to bring about a comprehensive transformation in rural life.
Additional Information
- Second Five-Year Plan (1956-1961):
- Shifted focus from agriculture to rapid industrialization, emphasizing heavy and basic industries such as steel and chemicals, following the P.C. Mahalanobis model.
- Growth and Success:
- The First Plan was highly successful, achieving a GDP growth rate of 3.6%, surpassing the initial target of 2.1%.
- National Income increased by 18%, while Per Capita Income saw a rise of approximately 11%.
- Planning Commission:
- Established in March 1950, this advisory body was responsible for drafting the Five-Year Plans until it was replaced by the NITI Aayog on January 1, 2015.
- Education and Health:
- By the end of the plan period in 1956, five Indian Institutes of Technology (IITs) were established to boost technical education.