UPSC Prelims 1996 · General Studies

Question 56: Economy and Social Development

The Eighth Five-Year Plan is different from the earlier ones. The critical difference lies in the fact that

ait has a considerably larger outlay compared to the earlier plans

bit has a major thrust on agricultural and rural development

cconsiderable emphasis is placed on infrastructure growth

dindustrial licensing has been abolished

AnswerThe answer is (d).

The Eighth Plan (1992-97) was the first prepared after the 1991 reforms: industrial licensing had been abolished for nearly all industries, and planning moved from a controlling, public-sector-led style to an indicative one with a larger role for the market. Outlay, rural focus and infrastructure were not what set it apart, since earlier plans had stressed agriculture and infrastructure too.

Why each option is right or wrong

(a) Every new plan has a larger outlay, so this is not the critical difference.
(b) Earlier plans also stressed agriculture and rural development.
(c) Infrastructure had been emphasised in earlier plans as well.
(d) Right: the abolition of industrial licensing marks the break from earlier plans.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 1996, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.