Read the passage given below and answer the question.
In 1985, Meena’s grandfather applied for a telephone connection for his shop in a small town. The connection came only after several years. In the same town, a hotel run by the government made losses year after year, while two private hotels nearby did good business. Earlier, in the 1950s, the government had set up a large steel plant near the town under a five year plan.
The steel plant in the passage was set up under one of India’s five year plans. Which of the following correctly describes how India’s five year plans dealt with the output of goods and services?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → They were specific about sectors where the plan had a commanding role and left the rest to the market.
India’s plans did not fix the output of every good. A plan was specific only about sectors where it had a commanding role, such as power and irrigation, and left the rest to the market.
Option (1) They fixed the output of every good, an approach India borrowed from the former Soviet Union. — Incorrect. The Soviet Union tried this and failed. India borrowed only the five-year form of plans.
Option (2) They fixed every good’s output for five years and left the rest to the perspective plan. — Incorrect. The perspective plan set long-term goals over twenty years, not the output of each good.
Option (3) They specified only consumer goods and left heavy industry to the market. — Incorrect. The state kept control of key industries, such as steel; it did not leave them to the market.
Option (4) They were specific about sectors where the plan had a commanding role and left the rest to the market. — Correct. Power generation and irrigation are such sectors.
NCERT (2026-27): “Box 2.2: What is a Plan? … India’s five year plans did not spell out how much of each and every good and service is to be produced. This is neither possible nor necessary (the former Soviet Union tried to do this and failed). It is enough if the plan is specific about the sectors where it plays a commanding role, for instance, power generation and irrigation, while leaving the rest to the market.” |