Q11. Identify the incorrect statement regarding the criticism of public sector enterprises in India prior to the 1991 reforms.
Planning, Economic Reforms and Development: RAS Prelims MCQs
19 RAS Prelims MCQs on planning, economic reforms and development up to 2000 cover the Planning Commission, the Five Year Plans, the public sector, industrial policy, bank nationalisation and the White Revolution. The explanations give the logic behind each policy, which helps with the statement and assertion-reason items.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 11–19 of 19 questions
Q12. Which of the following policy documents officially classified industries into three categories, reserving the commanding heights of the economy exclusively for the state?
Explanation
The Industrial Policy Resolution of 1956 served as the economic constitution for India’s planning. It categorized industries into three schedules to ensure state control over the "commanding heights" of the economy. Schedule A industries were reserved exclusively for the public sector. This policy reinforced the socialistic pattern of society by limiting private expansion in strategic sectors like defense and heavy engineering.
Q13. Who among the following is widely recognized as the "Father of the White Revolution" in India?
Explanation
Verghese Kurien is known as the Father of the White Revolution, which was carried out through Operation Flood.
Q14. Identify the correct pair regarding the White Revolution:
Explanation
NDDB stands for National Dairy Development Board. AMUL stands for Anand Milk Union Limited and Operation Flood was not financed entirely by the World Bank.
Q15. In July 1969, how many major commercial banks were nationalised by the Government of India through an ordinance?
Explanation
In July 1969, 14 major commercial banks were nationalised by an ordinance.
Q16. Match the financial milestones in List I with their corresponding years in List II.
| Financial Milestones | Years |
|---|---|
| A. Establishment of Reserve Bank of India | i. 1955 |
| B. Nationalisation of Imperial Bank of India (to form SBI) | ii. 1969 |
| C. First major wave of Bank Nationalisation | iii. 1980 |
| D. Second wave of Bank Nationalisation (6 banks) | iv. 1935 |
Explanation
The Reserve Bank of India was set up in 1935, the Imperial Bank became the State Bank of India in 1955, the first bank nationalisation was in 1969 and the second in 1980. This gives A-iv, B-i, C-ii, D-iii.
Q17. Consider the following statements regarding the rationale for bank nationalisation in 1969:
I. To direct credit flow to priority sectors such as agriculture and small scale industries.
II. To prevent the concentration of economic power in the hands of a few industrial houses.
III. To strictly comply with the conditionalities imposed by the International Monetary Fund.
Which of the above statements are correct?
I. To direct credit flow to priority sectors such as agriculture and small scale industries.
II. To prevent the concentration of economic power in the hands of a few industrial houses.
III. To strictly comply with the conditionalities imposed by the International Monetary Fund.
Which of the above statements are correct?
Explanation
Nationalisation in 1969 aimed to direct credit to priority sectors and prevent economic power from concentrating in a few industrial houses. It was not done to meet IMF conditions, so III is wrong.
Q18. Which of the following was NOT a consequence of bank nationalisation in India up to 2000?
Explanation
Nationalisation expanded rural branches, raised household savings and led to the Lead Bank Scheme. It did not eliminate non-performing assets, so A is not a consequence.
Q19. The abolition of the Privy Purses and privileges of the rulers of former Indian states was enacted through which Constitutional Amendment Act?
Explanation
The 26th Constitutional Amendment Act, passed in 1971, officially abolished the Privy Purses and the special privileges previously granted to the former rulers of princely states. This move was part of the government’s broader efforts to promote social equality and eliminate feudal remnants in the Indian democratic system. It reflected the commitment to a more egalitarian and socialist-oriented national policy.Answer key for these questions
| Q | Correct answer |
|---|---|
| 11 | (b) They generated high rates of return on investment, which crowded out private capital. |
| 12 | (c) Industrial Policy Resolution of 1956 |
| 13 | (c) V. Kurien |
| 14 | (b) NDDB - National Dairy Development Board |
| 15 | (d) 14 |
| 16 | (a) A-iv, B-i, C-ii, D-iii |
| 17 | (a) I and II only |
| 18 | (a) Complete elimination of non-performing assets (NPAs) in the banking sector |
| 19 | (d) 26th Amendment Act, 1971 |
Key facts from Planning, Economic Reforms and Development
- The Planning Commission was set up in March 1950 by a resolution of the Government of India.
- The First Five Year Plan focused on agriculture to meet food shortages caused by Partition; the Second Plan followed the Mahalanobis Model.
- The Industrial Policy Resolution of 1956 divided industries into three categories.
- The public sector dominated early planning because the private sector lacked capital for long-gestation heavy industries.
- V. Kurien is the Father of the White Revolution; NDDB stands for National Dairy Development Board.
- Fourteen major banks were nationalised in July 1969 and six more in 1980; the Reserve Bank was set up in 1935 and the Imperial Bank became the SBI in 1955.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Planning, Economic Reforms and Development?
This page has 19 practice MCQs on Planning, Economic Reforms and Development (Modern Indian History). Each has the correct answer, and most have an explanation.
Who is called the Father of the White Revolution?
Verghese Kurien. He led Operation Flood through the National Dairy Development Board and the Anand pattern of cooperatives, which made India one of the largest milk producers in the world.
How many banks were nationalised in 1969?
Fourteen major commercial banks, by an ordinance in July 1969. The aim was to direct credit to priority sectors such as agriculture and small industry and to prevent the concentration of economic power in a few industrial houses.
What was the Mahalanobis Model?
The strategy of the Second Five Year Plan, which gave priority to heavy and capital goods industries and a strong public sector. It was designed by P. C. Mahalanobis and aimed at rapid industrialisation.