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.

Both the Assertion and the Reason are correct and the Reason is the correct explanation of the Assertion.

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.