Read the following Assertion (A) and Reason (R) carefully and choose the correct option. Assertion (A): The Third Five Year Plan failed to meet its targets. Reason (R): The failure was mainly due to external shocks like war and drought.
Both A and R are true and R is the correct explanation of A.
Assertion (A) is true. The Third Five Year Plan (1961–66), which aimed at self-reliant growth with a target of about 5.6% annual growth, achieved only about 2.4% and is regarded as a failure.
Reason (R) is also true. The plan was hit by external shocks: the Sino-Indian war (1962), the Indo-Pakistan war (1965) and severe droughts in 1965–66, which diverted resources to defence, caused food shortages and inflation.
These shocks were the main cause of the shortfall, so R correctly explains A. The setback led to Plan Holiday annual plans from 1966 to 1969.
Hence, both A and R are true and R is the correct explanation of A.
Similar Questions
The second five-year plan was primarily based on which economic model?
Which of the following was a defining feature of India’s mixed economy model during the Five Year Plan period?
Read the following Assertion (A) and Reason (R) carefully and choose the correct option.
Assertion (A): The Fourth Five Year Plan aimed at growth with stability and self-reliance.
Reason (R): It was launched after the shocks of war and droughts during the previous plan period.
Important Questions from Fundamentals of Economy
- Which of the following statements is NOT correct regarding India after its adoption of new economic reforms in 1991?
- India initiated structural reforms in 1991 to address a severe balance of payments crisis. Which global institution played a key role in supporting India's 1991 reforms?
The problem of choice arises on account of the pressure of three interrelated facts, viz, human wants are unlimited, means required to satisfy these wants are limited and ____.
"What to produce?" is a basic problem faced by an economy under which of the following central problems?
In which type of economy social justice is accorded higher priority than profit maximization?
