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Home/Practice questions/Economics
EconomicsIndian Economic Development: Indian Economy:1950-1990

In a country, the benefits of economic prosperity are enjoyed only by…

In a country, the benefits of economic prosperity are enjoyed only by the rich, while most people cannot meet basic needs such as food, a decent house, education and health care. Which goal of planning has this country failed to achieve?

Answer & explanation+

Correct answer: option 2

The correct answer is Option (2) → Equity

Equity means the benefits of prosperity reach the poor sections too, and every person can meet basic needs such as food, a decent house, education and health care. Here only the rich gain, so equity is missing.

Option (1) Self-reliance — Incorrect. It means avoiding imports of goods that can be made at home.

Option (2) Equity — Correct. Fair sharing of the gains is what is missing.

Option (3) Modernisation — Incorrect. It means new technology and a modern social outlook.

Option (4) Growth — Incorrect. It means a rise in the capacity to produce. A country can grow and still have most people poor.

NCERT (2026-27): “2.2 The Goals of Five Year Plans … Equity: Now growth, modernisation and self-reliance, by themselves, may not improve the kind of life which people are living. A country can have high growth, the most modern technology developed in the country itself, and also have most of its people living in poverty. It is important to ensure that the benefits of economic prosperity reach the poor sections as well instead of being enjoyed only by the rich. So, in addition to growth, modernisation and self-reliance, equity is also important. Every Indian should be able to meet his or her basic needs such as food, a decent house, education and health care and inequality in the distribution of wealth should be reduced. …”

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