The 7th Five-Year Plan is credited with laying the foundation for which of the following major economic reform eras in India?
Show answer & explanation
Correct answer: C
Explanation
Answer: (C) Economic liberalization and modernization in the 1990s
Explanation:
India's Seventh Five-Year Plan (1985–90) is considered the cornerstone of the historic economic reforms of 1991. The primary objective of this plan was to enhance productivity, generate employment opportunities, and focus on 'Food, Work, and Productivity.' Under this plan, the significance of the private sector was acknowledged, and emphasis was placed on utilizing technology for modernization. Initiated under the leadership of Rajiv Gandhi, this plan laid the foundation for relaxing the 'License Raj' and opening the doors to foreign investment—a process that reached its full fruition in the LPG (Liberalization, Privatization, and Globalization) reforms of 1991.
Additional Points:
Nationalization of Banks: This occurred primarily during the Fourth (1969) and Sixth (1980) Five-Year Plans.
Green Revolution: This was initiated during the Third Five-Year Plan (mid-1960s).
Potential Exam Questions and Answers:
Question: During which Five-Year Plan was the 'Jawahar Rozgar Yojana' launched?
Answer: The Seventh Five-Year Plan (1989).
Question: What was the core slogan of the Seventh Plan?
Answer: Food, Work, and Productivity.