What was the major economic challenge addressed in the Third Five-Year Plan (1961-1966)?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. War-time expenditure and resource allocation.
The Third Five-Year Plan (1961–1966) primarily focused on making India self-reliant and achieving self-sufficiency in food production. However, the plan faced a major economic setback due to:
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The 1962 war with China
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The 1965 war with Pakistan
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Resulting high defense expenditure and diversion of resources
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Simultaneous economic challenges like droughts and food shortages
These events disrupted the Plan's original goals and shifted priorities toward war-time expenditure and emergency resource allocation, ultimately leading to its premature failure.