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Which of the following posed a significant obstacle to the effective execution of the Five-Year Plans?
Systematic over-fulfillment of sectoral growth benchmarks
Bureaucratic inefficiencies, resource constraints, and unforeseen external shocks
Uninterrupted and efficient intergovernmental coordination
Perfect alignment between private sector ambitions and planned economic goals
Bureaucratic inefficiencies, resource constraints, and unforeseen external shocks
India's Five-Year Plans, modeled on the Soviet system, faced recurring challenges due to administrative red tape, lack of adequate financial capital, and frequent disruptions caused by wars (1962, 1965, 1971) and severe droughts. These factors collectively prevented the realization of targeted growth rates and led to the intermittent abandonment of long-term planning, such as the Plan Holidays.
India's Five-Year Plans, modeled on the Soviet system, faced recurring challenges due to administrative red tape, lack of adequate financial capital, and frequent disruptions caused by wars (1962, 1965, 1971) and severe droughts. These factors collectively prevented the realization of targeted growth rates and led to the intermittent abandonment of long-term planning, such as the Plan Holidays.
The Planning Commission was established in 1950 by an executive resolution of the Government of India, later replaced by the NITI Aayog on January 1, 2015, which functions as a think tank rather than a resource-allocating body.
The Third Five-Year Plan (1961-1966) was the biggest failure due to the Indo-China war, Indo-Pak war, and severe drought.
The concept of 'Plan Holiday' (1966-1969) was triggered by the failure of the Third Five-Year Plan and resource crunch.
Agricultural self-sufficiency was prioritized only after the failure of industrial-heavy plans to meet food security needs.
Bureaucratic inefficiencies often manifested as delays in project clearances and fund disbursements.
External shocks like the 1973 oil crisis and 1991 balance of payments crisis drastically shifted planned fiscal targets.
Option A is incorrect because over-fulfillment was rare, with most plans failing to hit aggregate targets. Option C is incorrect as coordination between the Center and States frequently faced political and fiscal friction. Option D is incorrect as the state-led 'Command Economy' often faced resistance from the private sector regarding licensing and regulation.
B is correct тАФ Bureaucratic delays, lack of adequate domestic savings, and unforeseen crises like droughts and wars were the primary impediments to planning success.
Connect this to the 1991 LPG reforms, which were necessitated by the inability of the planned model to handle external shocks, marking the transition from state-led planning to market-oriented liberalization.
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