Which of the following correctly links a Five-Year Plan with the main challenge it faced?
Show answer & explanation
Correct answer: B
Explanation
Correct Answer:
Third Plan – food crisis and Indo-China war
Explanation:
The Third Five-Year Plan (1961–1966) faced severe economic and political challenges, most notably a severe food crisis caused by back-to-back droughts and military conflicts, including the Sino-Indian War of 1962 and the Indo-Pakistani War of 1965. These crises severely strained India's financial resources, diverted funds from development to defense, and forced the government to shift its focus toward achieving food self-sufficiency through the Green Revolution.
Key Points:
The Third Five-Year Plan was based on the strategy of the Mahalanobis model with a focus on heavy industry, but it performed well below targets due to unforeseen external shocks.
The consecutive years of drought and wars led to a major food shortage, resulting in the devaluation of the Indian rupee in 1966 and the introduction of "Plan Holidays" (1966–1969) instead of a continuous fourth plan.
The failure and challenges of this period prompted India to prioritize agricultural development in subsequent planning phases.
Important Questions and Answers:
Question: During which Five-Year Plan did the Indo-China war take place?
Answer: The Third Five-Year Plan.
Question: What temporary planning period followed the conclusion of the Third Five-Year Plan due to severe economic crises?
Answer: Plan Holidays (1966 to 1969).