What was the impact of the global oil crisis of 1973 on the Fifth Five Year Plan (1974- 1979)?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Caused economic disruptions and re-prioritisation.
- The impact of the 1973 global oil crisis caused economic disruption and the Fifth Five-Year Plan (1974–1979) was re-prioritized.
- The Fifth Five-Year Plan (1974–78) aimed to promote self-reliance and reduce poverty through growth-focused policies.
- The plan was interrupted in 1978 due to rising inflation, a global oil crisis, and other economic challenges of the 1970s.
- Political instability following the Emergency period (1975–77) also affected the plan’s progress.
- After its disruption, the focus shifted to poverty alleviation programmes like the Integrated Rural Development Programme (IRDP).
- The Janata government formally terminated the Fifth Plan in 1978 and replaced it with a Rolling Plan approach.