UPSC Indian Economy – Chapter 4: Planning in India – Five-Year Plans to NITI Aayog (23 MCQs)

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UPSC Indian Economy – Chapter 4: Planning in India – Five-Year Plans to NITI Aayog (23 MCQs) – 23 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
UPSC Prelims 2014

The main objective of the 12th Five-Year Plan is

Correct Answer: D [faster, sustainable and more inclusive growth]

Explanation:

the Twelfth Plan's stated objective. The Plan document is titled 'Faster, More Inclusive and Sustainable Growth'.

2.  
UPSC Prelims 2014

Which of the following are associated with 'Planning' in India?
1. The Finance Commission
2. The National Development Council
3. The Union Ministry of Rural Development
4. The Union Ministry of Urban Development
5. The Parliament
Select the correct answer using the code given below.

Correct Answer: C [2 and 5 only]

Explanation:

the NDC approved Plans; Parliament approved and funded them.

3.  
UPSC Prelims 2019

With reference to India's Five-Year Plans, which of the following statements is/are correct?
1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital goods industries.
2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.
Select the correct answer using the code given below:

Correct Answer: A [1 and 2 only]

Explanation:

heavy-industry import substitution from the Second Plan; the Fourth Plan addressed concentration.

4.  

"Economic and social planning" is placed in the Constitution of India in:

Correct Answer: B [the Concurrent List]

Explanation:

Entry 20 of List III.

5.  

Planned Economy for India (1934) was written by:

Correct Answer: A [M. Visvesvaraya]

Explanation:

the first systematic plan proposal.

6.  

The Gadgil formula for distributing Central Plan assistance among the States was first used in the:

Correct Answer: C [Fourth Five-Year Plan]

Explanation:

the Gadgil formula was first applied in the Fourth Plan (1969–74) and continued in the Fifth.

7.  

Consider the following statements about the Planning Commission:
1. It was set up by a resolution of the Union Cabinet.
2. The Prime Minister was its Chairman.
3. It was a statutory body.
Which of the statements given above are correct?

Correct Answer: D [1 and 2 only]

Explanation:

an executive body under the PM.

8.  

The body that gave final approval to the draft Five-Year Plans was:

Correct Answer: A [the National Development Council]

Explanation:

set up in 1952.

9.  

Under Part IXA of the Constitution, a Metropolitan Planning Committee (Article 243ZE) is to be constituted for every metropolitan area, which is an area having a population of:

Correct Answer: B [ten lakh or more]

Explanation:

Article 243P(c): an area with a population of ten lakh or more, in one or more districts.

10.  

The period 1966–69, when three Annual Plans were implemented, is called:

Correct Answer: A [the Plan holiday]

Explanation:

after the Third Plan's failure.

11.  

"Growth with stability" and "progressive achievement of self-reliance" were the objectives of the:

Correct Answer: A [Fourth Plan]

Explanation:

1969–74.

12.  

The Rolling Plan was introduced by the:

Correct Answer: B [Janata Government in 1978]

Explanation:

1978–80.

13.  

The first Five-Year Plan after the economic reforms of 1991 was the:

Correct Answer: C [Eighth Plan]

Explanation:

1992–97; planning became indicative.

14.  

NITI Aayog's document Strategy for New India @75 was released in:

Correct Answer: A [2018]

Explanation:

NITI Aayog released it in December 2018, setting goals for 2022-23, the 75th year of independence.

15.  

Consider the following statements about NITI Aayog:
1. It allocates plan funds to the States.
2. Its Governing Council includes the Chief Ministers of all States.
3. The Prime Minister is its Chairperson.
Which of the statements given above are correct?

Correct Answer: B [2 and 3 only]

Explanation:

an advisory body chaired by the PM.

16.  

Under the reconstitution notified on 24 April 2026, the Vice-Chairperson of NITI Aayog is:

Correct Answer: D [Ashok Kumar Lahiri]

Explanation:

appointed in April 2026.

17.  

The Development Monitoring and Evaluation Office (DMEO) is attached to:

Correct Answer: C [NITI Aayog]

Explanation:

with the Atal Innovation Mission.

18.  

The People's Plan Campaign "Sabki Yojana Sabka Vikas", launched on 2 October 2018, was started to prepare:

Correct Answer: D [Gram Panchayat Development Plans]

Explanation:

It was launched to prepare Gram Panchayat Development Plans with people's participation; block and district plans were added later.

19.  

Assertion (A): NITI Aayog's influence over States depends largely on persuasion and competition.
Reason (R): NITI Aayog has no power to allocate funds to States.

Correct Answer: B [Both A and R are true, and R is the correct explanation of A]

Explanation:

indices and advice, not money.

20.  

Arrange the following in chronological order:
1. National Development Council set up
2. Gandhian Plan
3. NITI Aayog set up
4. Planning Commission set up

Correct Answer: C [2–4–1–3]

Explanation:

1944, 1950, 1952, 2015.

21.  

Nationalisation of 14 major commercial banks took place during the:

Correct Answer: D [Fourth Plan]

Explanation:

July 1969.

22.  

Which of the following is a key difference between indicative and imperative planning?

Correct Answer: A [Indicative planning sets direction and uses incentives, while imperative planning issues binding commands]

Explanation:

the definition; India's planning became indicative from the Eighth Plan (1992–97).

23.  

The Third Five-Year Plan (1961–66) failed to reach its target mainly because of:

Correct Answer: C [the 1962 and 1965 wars and the 1965–66 drought]

Explanation:

the wars and the drought derailed the Plan, leading to the Plan holiday of 1966–69.

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