Question

Q. With reference to five year plans in India, consider the following pairs:

	Plan	Strategy/Model
1.	1st Five Year Plan	Harrod-Domar Model
2.	2nd Five Year Plan	Mahalanobis Strategy
3.	3rd Five Year Plan	Gadgil strategy

Which of the above given pairs is/are correctly matched?

• A.
  1 and 2 only
• B.
  2 and 3 only
• C.
  2 only
• D.
  1, 2 and 3

Answer 1

The correct option is A

1 and 2 only
Explanation:

Pair 1 is correctly matched: The Harrod–Domar model is a Keynesian model of economic growth. It is used in development economics to explain an economy's growth rate in terms of the level of saving and of capital. 1st Five Year Plan (1951-56) was based on the Harrod-Domar model.

Pair 2 is correctly matched: Mahalanobis Strategy was adopted for India's Second Five Year Plan (1956-61). Under this strategy, the top priority was given to investment goods, as they were crucial for further economic growth of India.

Pair 3 is incorrectly matched: Gadgil strategy/formula suggested criterias for central plan assistance as follows:

• Population
• Per Capita Income
• Tax Effort
• Ongoing Irrigation and power projects
• Special problems

There was no formula for central plan assistance till the end of 3rd FYP. The 4th Five Year Plan (1969-74) was based on Gadgil strategy.