The planners of the first five-year plan aimed to increase the national income. How could it be made possible?

Stimulate higher savings than spending

The correct answer is Option 4 - Stimulate higher savings than spending

The First Five-Year Plan (1951–1956) sought to get the country’s economy out of the cycle of poverty.

One of the basic aims of the planners was to raise the level of national income, which could be possible only if the people saved more money than they spent. As the basic level of spending was very low in the 1950s, it could not be reduced any more. So the planners sought to push savings up. That too was difficult as the total capital stock in the country was rather low compared to the total number of employable people. Nevertheless, people’s savings did rise in the first phase of the planned process until the end of the Third Five Year Plan. But, the rise was not as spectacular as was expected at the beginning of the First Plan. Later, from the early 1960s till the early 1970s, the proportion of savings in the country actually dropped consistently.