Planning in India and Economic Reforms: UPSC Previous Year Questions (Indian Economy)
19 previous year UPSC Prelims questions on planning in India and economic reforms appear here, from 1996 to 2020. UPSC asks about the Five-Year Plans and their emphasis, who approves a plan, what began liberalisation in 1991 and what inclusive growth means. The explanations give the plan period and the strategy of each.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 11–19 of 19 questions
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UPSC 2009Indian Economy · Planning in India and Economic Reforms
Q11. Consider the following statements regarding Indian Planning: 1. The Second Five-Year Plan emphasized on the establishment of heavy industries. 2. The Third Five-Year Plan introduced the concept of import substitution as a strategy for industrialization. Which of the statements given above is/are correct?
Explanation
Statement 1 is correct: The Second Five-Year Plan (1956-61) focused on establishing heavy industries such as steel plants, machinery, and chemical plants. It was based on the Mahalanobis model, which aimed at rapid industrialization.
Statement 2 is correct: The Third Five-Year Plan (1961-66) emphasized import substitution, a strategy to reduce dependence on foreign goods by promoting domestic industries. This policy was key to building India’s self-reliant industrial base.
UPSC 2002Indian Economy · Planning in India and Economic Reforms
Q12. Five Year Plan in India is finally approved by:
Explanation
The National Development Council (NDC), comprising the Prime Minister, Union Ministers, Chief Ministers of states, and members of the Planning Commission, had the final authority to approve India’s Five-Year Plans. This ensured that national and state priorities were aligned.
UPSC 2000Indian Economy · Planning in India and Economic Reforms
Q13. Economic liberalisation in India started with:
Explanation
Economic liberalization in India began with substantial changes in the industrial licensing policy under the New Economic Policy of 1991. The reforms aimed to reduce state control by delicensing industries, promoting competition, and encouraging private sector participation. This marked a departure from the License-Permit Raj of earlier decades.
UPSC 1998Indian Economy · Planning in India and Economic Reforms
Q14. Economic Survey in India is published officially, every year by the:
Explanation
The Economic Survey of India is published annually by the Ministry of Finance, Government of India. It is usually released just before the Union Budget and provides a comprehensive overview of the country’s economic performance in the previous year and outlook for the future. The Economic Survey is prepared by the Department of Economic Affairs under the Ministry of Finance and includes analyses of various economic sectors, fiscal policies, and key challenges the country faces.
UPSC 1997Indian Economy · Planning in India and Economic Reforms
Q15. The Sixth and the Eighth Five Year Plans covered the period 1980-1985 and 1992-1997 respectively. The Seventh Five Year Plan covered the period:
Explanation
The Seventh Five-Year Plan (1985-1990) focused on economic productivity, self-sufficiency, and modernization. It aimed at improving living standards and emphasizing agriculture, energy, and infrastructure. The plan also initiated measures toward economic liberalization, setting the stage for future re-forms.
UPSC 1997Indian Economy · Planning in India and Economic Reforms
Q16. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Assertion (A): The emergence of economic globalism does not imply the decline of socialist ideology. Reason (R): The ideology of socialism believes in Universalism and globalism. In the context of the above two statements, which one of the following is correct?
Explanation
Assertion (A) is true: Economic globalism, which involves greater interconnectedness and interdependence of economies, does not necessarily mean that socialist ideology will decline. Socialism can continue to influence political and economic systems even as globalism takes hold, since socialism is more focused on social ownership and equality, not just the structure of the global economy. Reason (R) is true: While socialism supports principles of Universalism and equity, its role in globalism is not central. Economic globalism often focuses on capitalist principles rather than socialist ideals. Thus, Reason (R) is true but does not explain Assertion (A).
UPSC 1996Indian Economy · Planning in India and Economic Reforms
Q17. The Eighth Five Year Plan is different from the earliest ones. The critical difference lies in the fact that:
Explanation
The Eighth Five-Year Plan (1992-1997) emphasized infrastructure growth alongside economic liberalization and privatization introduced in 1991. The plan aimed to develop sectors like power, transportation, and telecommunications to drive industrial and economic growth.
UPSC 1996Indian Economy · Planning in India and Economic Reforms
Q18. Which one of the following is correct regarding stabilization and structural adjustment as two components of the new economic policy adopted in India?
Explanation
Stabilization refers to short-term macroeconomic policies aimed at reducing inflation, fiscal deficit, and balance of payments crises. It involves quick adjustments to restore financial stability. To stabilize the economy in 1991, India immediately raised interest rates to control inflation and stabilize foreign reserves. Structural adjustment refers to long-term reforms focused on improving the efficiency of the economy through trade liberalization, privatization, and regulatory reforms. These are gradual and multi-step processes. Ex-After the 1991 stabilization measures, India undertook long-term structural reforms such as liberalizing trade and privatizing state-owned enterprises.
UPSC 1996Indian Economy · Planning in India and Economic Reforms
Q19. One of the important goals of the economic liberalisation policy is to achieve full convertibility of the Indian rupee. This is being advocated because:
Explanation
Full convertibility would mean the rupee exchange rate would be left to market factors without any regulatory intervention. There would be no limit on inflow or outflow of capital for various purposes including investments, remittances, or asset purchases/sales. Full convertibility of the Indian rupee is primarily aimed at promoting exports by making trade transactions easier and eliminating restrictions on currency exchange. This helps Indian exporters compete in global markets by allowing free movement of capital.
Answer key for these questions
Q
UPSC year
Correct answer
11
2009
(c) Both 1 and 2
12
2002
(d) National Development Council
13
2000
(a) substantial changes in industrial licensing policy
14
1998
(c) Ministry of Finance, Govt. of India
15
1997
(c) 1985-1990
16
1997
(b) Both A and R are true but R is not the correct explanation of A
17
1996
(c) considerable emphasis is placed on infrastructure growth
18
1996
(b) Structural adjustment is a gradual multi-step process, while stabilization is a quick adaptation process
19
1996
(c) it will help to promote exports
What UPSC has tested in Planning in India and Economic Reforms
The Five-Year Plan is finally approved by the National Development Council.
The Second Five-Year Plan emphasised the establishment of heavy industries.
Economic liberalisation in India started with substantial changes in industrial licensing.
The main objective of the 12th Five-Year Plan was faster, more sustainable and more inclusive growth.
The Economic Survey is published every year by the Ministry of Finance.
Frequently asked questions
How many previous year UPSC questions are there on Planning in India and Economic Reforms?
This page covers 19 previous year UPSC Prelims GS Paper-I questions on Planning in India and Economic Reforms (Indian Economy), asked from 1996 to 2020. Each has the correct answer and an explanation.
Who finally approves the Five-Year Plan?
The National Development Council, which consists of the Prime Minister, Union ministers, Chief Ministers and members of the Planning Commission. The plan was drafted by the Planning Commission, and the NDC’s approval gave it final status.
What did the Second Five-Year Plan emphasise?
The Second Plan (1956-61), based on the Mahalanobis model, emphasised rapid industrialisation, especially heavy and capital-goods industries, and the expansion of the public sector. Steel plants at Bhilai, Rourkela and Durgapur were set up under it.
What was the 12th Five-Year Plan’s objective?
Faster, more sustainable and more inclusive growth. It was the last plan, covering 2012-17, before the Planning Commission was replaced by NITI Aayog in 2015 and the Five-Year Plans were discontinued.
