Test: Economic Planning - UPSC MCQ

Economic planning is designed to achieve balanced growth and development by allocating resources effectively and prioritizing sectors that need support and development.

As of my last update in September 2021, India was operating under the Twelfth Five Year Plan (2012-2017). However, please verify this information as plans may have changed after that date.

 India follows a mixed economy model where both the public and private sectors play important roles in economic planning and development.

The Planning Commission was responsible for formulating Five Year Plans in India. Although it was replaced by NITI Aayog in 2015, NITI Aayog does not undertake the formulation of Five Year Plans.

The concept of Five Year Plans in India was inspired by the Soviet Union's economic planning model.

Economic planning involves central coordination and allocation of resources based on priorities, rather than relying solely on market forces.

Economic planning aims to achieve self-sufficiency in food production to ensure food security for the country's population.

Economic planning involves carefully assessing the current economic situation, setting specific goals, and formulating strategies to achieve those goals.

In most economic planning models, the agricultural sector often receives the highest priority as it supports a significant portion of the population and ensures food security.

The Eleventh Five Year Plan (2007-2012) in India was associated with the motto "Growth with Social Justice."

The Five Year Plans in India typically last for five years, during which development targets and goals are set.

To control inflation, economic planners often tighten monetary policy, which includes measures like increasing interest rates to reduce borrowing and spending.

The industrial sector is often considered the "engine of economic growth" as it contributes significantly to GDP and creates jobs.

Economic planning allows for better coordination and allocation of resources, which can lead to more focused and effective development.

The current approach to economic planning in India is the bottom-up approach, which involves active participation of states and local governments in the planning process.

NITI Aayog serves as the premier policy think tank and the apex body for the planning process in India.

India borrowed the concept of Five Year Plans from the Soviet Union.

While inflation rate is an important economic indicator, it is not a factor directly considered during the process of economic planning. However, it may influence planning decisions indirectly.

The Fourth Five Year Plan (1969-1974) is also known as the "Gadgil Yojana" after D.R. Gadgil, the then-Deputy Chairman of the Planning Commission.

The "Mahalanobis Model" was used during the Second Five Year Plan (1956-1961) and was named after the renowned Indian statistician Prasanta Chandra Mahalanobis.