Assertion: The Fourth Five-Year Plan could be initiated only in 1969.
Reason: The wars with the neighbours drained India of its resources. Most of the resources were diverted toward the defence sector.
Answer & explanation
Correct answer: option 2
India, with its limited resources, had initiated development planning. However, conflicts with neighbours derailed the five-year plans. The scarce resources were diverted to the defence sector especially after 1962, as India had to embark on a military modernisation drive. The Department of Defence Production was established in November 1962 and the Department of Defence Supplies in November 1965. The Third Plan (1961-66) was affected and it was followed by three Annual Plans and the Fourth Plan could be initiated only in 1969. India’s defence expenditure increased enormously after the wars.