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 good 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.
Explanation
Statements 1 and 2 are correct because the Second Five-Year Plan (Mahalanobis Model) shifted focus toward heavy industrialization and capital goods, while the Fourth Plan explicitly aimed at reducing the concentration of economic power through socialist measures like bank nationalization. Statement 3 is incorrect because the financial sector was not integrated as a distinct, integral component of the planning process until the Ninth Five-Year Plan (1997–2002) following the 1991 economic reforms. The core concept being tested is the evolution of strategic objectives and sectoral priorities throughout India’s planning history.