Question

Q. With reference to the 2nd five-year plan, which of the following statements is/are correct?

Select the correct answer using the code given below:

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. Neither 1 nor 2

Answer 1

The correct option is C Both 1 and 2

Explanation:

Second Plan (1956 - 61) was conceived in an atmosphere of economic stability.

Statements 1 and 2 are correct:

• It was felt agriculture could be accorded lower priority.
• The Plan Focussed on rapid industrialization with particular focus on the development of heavy & basic industries.
• The plan advocated huge imports through foreign loans.
• Acute shortage of forex led to the pruning of development targets, the price rise was also seen ( about 30%) vis a vis decline in the earlier Plan & the 2nd FYP was only moderately successful.
• Target Growth was fixed at 4.5% but the plan achieved a Growth rate of 4.3%.