Which of the following five year plan of India was launched after the initiation of structural adjustment policies?
Show answer & explanation
Correct answer: D
Explanation
Correct Answer:
Option 4: Eighth Five Year Plan
Explanation:
Structural Adjustment Policies (SAP) in India were primarily initiated after the economic crisis of 1991, known as the LPG (Liberalization, Privatization, and Globalization) reforms.
Time Period: The tenure of the Eighth Five Year Plan was from 1992 to 1997.
Reason for Delay: Due to political instability and the economic crisis, the Eighth Plan could not be launched in 1990 (two annual plans were implemented during 1990-92).
Speciality: This was the first plan implemented entirely within the framework of the New Economic Policy (1991). Its main focus was on human resource development and promoting the private sector.
Additional Facts:
LPG Reforms (1991): The then Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh are credited with these reforms, which is why it is also called the 'Rao-Manmohan Model'.
Plan Holiday: There was no Five-Year Plan between 1990-92 because India was grappling with a severe Balance of Payments (BoP) crisis.
Goal of the Eighth Plan: Its primary goal was to achieve an annual growth rate of 5.6%, while the actual growth rate was 6.8%, making it one of the most successful plans at that time.
Possible Questions for the Upcoming Exam:
Question: Which Five-Year Plan is called the 'Rao-Manmohan Model'?
Answer: Eighth Five-Year Plan.
Question: Who was the Prime Minister of India at the time of the 1991 economic reforms?
Answer: P.V. Narasimha Rao.
Question: What was the primary goal of the Eighth Five-Year Plan?
Answer: Human resource development (education, health, and employment).