consider the following statements
Statement I: The objective of "Growth with Social Justice & Equality" was introduced in the 10th Five Year Plan.
Statement II: The first Five-Year Plan was based on the "Harrod-Domar model".
Which of the above statements is/are correct?
Show answer & explanation
Correct answer: A
Explanation
Answer: Statement I is incorrect, Statement II is correct
Explanation:
Statement I: Incorrect. The objective of “Growth with Social Justice and Equality” was emphasized earlier, particularly during the 8th and 9th Five-Year Plans, not newly introduced in the 10th Five-Year Plan. The 10th Plan mainly focused on faster and more inclusive growth, aiming at an 8% GDP growth rate.
Statement II: Correct. The First Five-Year Plan was based on the Harrod-Domar Model, which emphasizes the role of savings and investment in driving economic growth.
Additional Key Points:
The First Five-Year Plan focused heavily on agriculture, irrigation, and energy.
The Harrod-Domar Model highlights that higher savings → higher investment → higher growth.
The 10th Five-Year Plan introduced monitorable targets for poverty reduction, employment, and education.
Five-Year Plans in India were formulated by the Planning Commission of India (now replaced by NITI Aayog).
Potential Exam-Oriented Questions & Answers:
Question: What was the primary focus of the First Five-Year Plan?
Answer: Agriculture and irrigation
Question: What was the target growth rate of the 10th Five-Year Plan?
Answer: 8% GDP growth