Topic Details (Notes format)

Five-Year Plans and Transition to New Planning Framework

Subject: Economics

Book: Comprehensive Indian Economy

Post-independence, India adopted Five-Year Plans inspired by socialist economic planning, focusing on industrial development, self-sufficiency, and poverty reduction. Over time, criticisms about rigid targets and inefficiencies grew. Eventually, a new planning paradigm emerged, dismantling the Planning Commission and replacing it with a more flexible institutional approach. This shift aims to promote cooperative federalism and encourage bottom-up policy initiatives. From an exam perspective, students should note the main objectives and outcomes of each Five-Year Plan, why the old model was replaced, and how the current framework focuses on strategic, medium-term policy agendas.

Practice Questions

What is meant by “monetary policy”?

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What does the term “elasticity of demand” measure?

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What is the significance of “Purchasing Power Parity” (PPP)?

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Which of the following statements best defines Gross Domestic Product (GDP)?

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What is the meaning of “disguised unemployment”?

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What is the term for the price at which demand and supply in a market are equal?

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Which term refers to an economy that has elements of both capitalism and socialism?

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Which of the following factors is NOT included in the calculation of Human Development Index (HDI)?

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Which of the following is a feature of monopolistic competition?

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Which of the following is NOT an example of a direct tax?

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