All Exams Test series for 1 year @ ₹349 only
Question

The Eighth Five Year Plan of India got delayed due to __________.

The correct answer is
political uncertainty at the Centre

Eighth Five Year Plan Delay: Political Uncertainty

The Eighth Five Year Plan (1992-1997) for India was a crucial period aimed at accelerating economic reforms and development. However, its commencement was not as scheduled. While planned to start in April 1990, the plan actually began in April 1992. The delay was primarily due to significant political uncertainty at the Centre during the preceding years.

Understanding the Delay

The period between 1990 and 1992 in Indian politics was marked by instability:

  • The National Front government led by V.P. Singh collapsed in November 1990.
  • This was followed by a short-lived government led by Chandrashekhar, which also failed to complete its term, falling in March 1991.
  • The country then faced a general election in mid-1991.
  • The new government under P.V. Narasimha Rao took office in June 1991 and focused initially on stabilizing the economy amidst a severe balance of payments crisis. The economic liberalization policies were introduced during this critical phase.
  • It was only after this period of intense political flux and initial economic stabilization efforts that the government could finalize and launch the Eighth Five Year Plan in April 1992.

Why Other Options Were Less Likely Causes

While other factors can influence economic performance, they were not the direct reason for the *delay* in launching the Eighth Five Year Plan:

  • Low agriculture output: Fluctuations in agricultural output impact the economy but don't typically halt the planning process itself for such an extended period.
  • Rise in global poverty: Global economic conditions are important, but a rise in global poverty would not directly prevent the Indian government from launching its internal development plan.
  • Lack of technology: Technology is integral to development plans, but the absence of technology is usually addressed *within* the plan rather than being a reason for its postponement. The core issue preventing the plan's initiation was the unstable political environment.

Therefore, the key reason for the delay in the Eighth Five Year Plan was the prevailing political uncertainty at the Centre, which disrupted the government's ability to finalize and implement long-term plans.

Was this answer helpful?

Important Questions from Fundamentals of Economy

  1. The meaning of _______ is freedom for economic decisions, which means that all the producers, owners and consumers of factors of production are free to take their decisions to promote their self-interest.

  2. 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 ____.

  3. "What to produce?" is a basic problem faced by an economy under which of the following central problems?

  4. In which type of economy social justice is accorded higher priority than profit maximization?

  5. Which industry is also known as basic industry?

Need Expert Advice?

Start Your Preparation with Prepp Mobile App

Download the app from Google Play & App Store
Download the app from Google Play & App Store
Prepp Mobile App