Economic planning in India dates back to the pre-Independence period when leaders of the freedom movement and prominent industrialists and academics got together to discuss the future of India after Independence which was soon to come. Every year many questions from different topics of the economy are asked in the Prelims exam. Hence, a clear understanding of each topic is required to solve such questions. To help the aspirants in their preparation, we have provided the 10 most important questions from the Composition Structure of Indian Economy topic of Economics for UPSC Prelims 2021.
Also Check: Important Topics to study from Economics Syllabus
Ques 1: Which of the following is in the correct order in terms of its incorporation?
(a). Bombay Plan > Gandhian Plan > People’s Plan > Sarvodaya Plan
(b). People’s Plan > Sarvodaya Plan > Bombay Plan > Gandhian Plan
(c). Sarvodaya Plan > Bombay Plan > Gandhian Plan > People’s Plan
(d). Gandhian Plan > Sarvodaya Plan > Bombay Plan > People’s Plan
Ans: a
| Explanation: Bombay Plan: It was presented by 8 leading industrialists of Bombay, Purshotamdas Thakurdas, J.R.D. Tata, G.D. Birla, Lala Sri Ram, Kasturbhai Lalbhai, A.D. Shroff, Avdeshir Dalal and John Mathai in 1944. Gandhian Plan: Sriman Narayan Agarwal formulated ‘Gandhian Plan’ in 1944. People Plan: In 1945, yet another plan was formulated by the radical humanist leader M.N. Roy, chairman of the Post-War Reconstruction Committee of Indian Trade Union. The plan was based on Marxist socialism and advocated the need of providing the people with the ‘basic necessities of life’. Agricultural and industrial sectors, both were equally highlighted by the plan. Sarvodaya Plan: After the reports of the NPC were published and the Government was set to go for the five-year Plans, a lone blueprint for the planned development of India was formulated by the famous socialist leader Jaiprakash Narayan—the Sarvodaya Plan published in January 1950. |
Ques 2: Consider the following statements regarding the important features included by the Constitutional provisions which pertain to the objectives of planning in the country:
- ‘Economic and social planning’ is a center subject.
- The Constitution includes provisions for promoting co-operation on a voluntary basis between the Union and the states.
- The Constitution also sets out in broad outline the pattern of the welfare state envisaged and the fundamental principles on which it should rest.
Which of the following statement(s) is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 3 only
(d) 1 and 2 only
Ans: b
| Explanation: ‘Economic and social planning’ is a concurrent subject. Also, while framing the ‘Union’, ‘State’ and ‘Concurrent’ list, allocating subjects and other provisions, the Constitution vests power in the Union to ensure co-ordinated development in essential fields of activity while preserving the initiative and authority of the states in the spheres allotted to them. |
Ques 3: Consider the following statements regarding the MP Local Area Development Scheme (MPLADS):
- Under this scheme the Members of Parliament recommend some works (i.e. creation of fixed community assets, based on locally felt developmental needs) to the concerned District Magistrate.
- The scheme is governed by a set of guidelines, which have been comprehensively revised and issued in November 2005.
- In April 2011 the corpus was enhanced to Rs. 10 crore while announcing the new guidelines for the scheme.
Which of the following statement(s) is/are correct?
(a) 1 only
(b) 2 only
(c) 1 and 2 only
(d) 2 and 3 only
Ans: c
| Explanation: Under this scheme the Members of Parliament recommend some works (i.e. creation of fixed community assets, based on locally felt developmental needs) to the concerned District Magistrate. The scheme is governed by a set of guidelines, which have been comprehensively revised and issued in November 2005. Its performance has improved due to pro-active policy initiatives, focus monitoring and review. In recent years, many criticisms of the scheme came to the public notice which concerned either misappropriation of the funds or non-use of the funds, especially from the backward states. The people’s representative at the PRI level have been demanding scrapping of the scheme as it infringes the idea of decentralised planning. In its place, they want the funds to be given to the local bodies directly for the same kind of works specified by the MPLADS. |
Ques 4: Which of the following five-year plan worked on the motive ‘removal of poverty and attainment of self-reliance’?
(a) Fourth Five year Plan
(b) Fifth Five year Plan
(c) Sixth Five year Plan
(d) Seventh Five year Plan
Ans: b
| Explanation: During the Fifth five year plan, India experienced high inflation. The plan was terminated by the Janta govt. Yet, the Indian national highway system was introduced for the first time. It worked on the model of “removal of poverty and attainment of self-reliance.” |
Ques 5: The very first five-year plan of India was based on the model of:
(a) Mahalanobis model
(b) Harrod Domar Model
(c) Bombay Plan
(d) None of these
Ans: b
| Explanation: The first five year plan was based on the Harrod-Domar model which is bsed on the steady state growth rate. |
Ques 6: Which of the following was a part of National Development Council?
- Prime Minister of India (Chairman of NDC)
- All cabinet ministers
- Chief Ministers of all states
Select the correct code:
(a) 1 and 2 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3 only
| Explanation: National Development Council (NDC) is composed of the members mentioned below: (i) Prime Minister of India (Chairman of NDC) (ii) Chief Ministers of all states (iii) Administrators of all Union Territories (iv) All cabinet ministers (v) Members of the Planning Commission |
Ques 7: Consider the following statements with reference to Aspirational Districts Programme:
- The program was launched by Ministry of Urban Development
- The program focuses closely on improving people’s ability to participate fully in the burgeoning economy
Which of the following statement/s is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: b
| Explanation: The program was Launched in January 2018 by Niti Aayog.
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Ques 8: Which of the following schemes/ initiatives were not launched by NITI Aayog?
(a) Young Champions Awards
(b) Atal Innovation Mission
(c) Digital Payments Movement
(d) Online Portal “ENSURE”
Ans: d
| Explanation: ENSURE – National Livestock Mission-EDEG, a portal developed by NABARD and operated under the Department of Animal Husbandry, Dairying & Fisheries. It was launched by Ministry of Agriculture & Farmers Welfare. |
Ques 9: Who gives the final approval to the five-year plans of India?
(a) National Development Council (NDC)
(b) Ministry of Finance
(c) Planning Commission (now NITI Aayog)
(d) President of India
Ans: a
| Explanation: National Development Council (NDC) or the Rashtriya Vikas Parishad is the apex body for decision making and deliberations on development matters in India presided over by the Prime Minister. National Development Council was set up on August 6, 1952, to strengthen and mobilize the effort and resources of the nation in support of the Plan, to promote common economic policies in all vital spheres, and to ensure the balanced and rapid development of all parts of the country. |
Ques 10: ‘Gadgil Report’, one of the several area-specific reports were publish during 1940s which was on:
(a) Agricultural Development
(b) Rural Credit
(c) Agricultural Prices
(d) Cooperatives
Ans: b
| Explanation: The idea for the need of a planned development of India became more and more popular by the decade of the 1940s. It was under this popular pressure that the Government of India started taking some planned actions in this direction. In the 1940s, we see several area-specific reports being published: Gadgil Report on Rural Credit Kheragat Report on Agricultural Development Krishnamachari Report on Agricultural Prices Saraiya Report on Cooperatives A series of Reports on Irrigation (ground water, canal, etc.) All these reports, though prepared with great care and due scholarship, the Government had hardly any zeal to implement plans on their findings. But independent India was greatly benefited when the planning started covering all these areas of concerns. |
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