After which of the following five year plan in India, the emphasis on the public sector has become less pronounced?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4: Ninth (Ninth Five-Year Plan).
Explanation:
- Following the economic reforms in India, there was a gradual shift in the role of the Public Sector.
- Historical Context: After the LPG (Liberalization, Privatization, and Globalization) reforms of 1991, the government began to reduce its direct participation in the economy.
- Ninth Five-Year Plan (1997–2002): This plan coincided with a transitional period during which the government's focus shifted from being a 'Controller' to becoming a 'Facilitator.' From this plan onwards, greater opportunities were accorded to the private sector, and the emphasis on investment in Public Sector Undertakings (PSUs) began to diminish.
- Shift in Strategy: The government adopted a policy of 'Strategic Disinvestment,' under which the process of transferring non-essential public sector units to the private sector was accelerated.
Key Facts about the Five-Year Plans:
Plan | Period | Main Objective/Feature
First | 1951–56 | Focus on agriculture and irrigation (Harrod-Domar Model).
Second | 1956–61 | Expansion of heavy industries and the public sector (Mahalanobis Model).
Fifth | 1974–78 | Poverty eradication (*Garibi Hatao*) and self-reliance.
Ninth | 1997–02 | Growth with social justice and equity.
Additional Information (NITI Aayog):
- Abolition of the Planning Commission: The Planning Commission was dissolved in 2014.
- NITI Aayog: Constituted on January 1, 2015, it operates on a '15-Year Vision Document' and a '3-Year Action Agenda' as a replacement for the Five-Year Plans.
Potential Question for Upcoming Exams:
Question: Which Five-Year Plan is considered to be based on the 'Mahalanobis Model'?
Answer: The Second Five-Year Plan. Question: What was the period of the 'Plan Holiday' in India?
Answer: 1966 to 1969.
Question: Who is the current Chief Executive Officer (CEO) of NITI Aayog?