Which Five Year Plan in India was based on the Harrod-Domar Model?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 1st Five Year Plan.
The First Five-Year Plan in India, which began in 1951, was based on the Harrod-Domar Model. This model, developed by economists Sir Roy Harrod and Evsey Domar, emphasized the relationship between investment and economic growth. The plan focused on agricultural development and the stabilization of the economy through investment in infrastructure and sectoral development. It aimed to address the immediate economic challenges faced by post-independence India and set the foundation for future planning and growth.