Question

Why did the Eighth Five-Year Plan start in the year 1992 instead of the year 1990?

• A. The Five-Year Plans were terminated.
• B. The years 1990 and 1991 had the Annual Plans.
• C. The government needed to take immediate corrective actions.
• D. The Five-Year Plans did not work on the Indian economy.

Answer 1

Answer: (B), (C)

The government needed to take immediate corrective actions.

The Eighth Five-Year Plan, which was to be started in 1990, was actually enforced in 1992. This was because the plans of 1990–91 and 1991–92 were considered to be yearly plans where the government focused on taking immediate corrective actions for the economy. Numerous events like the foreign exchange crisis had reduced economic development. Hence, the Five-Year Plans were not terminated but only resumed from the year 1992 after the corrective measures were carried out.