Initiatives by Government MCQ Quiz - Objective Question with Answer for Initiatives by Government - Download Free PDF

The correct answer is 1991.

Key Points

• The New Economic Policy, often referred to as the Economic Liberalisation in India, was introduced in 1991.
• Faced with a major economic crisis, the government of India, led by then Prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh, decided to introduce radical changes in India's economic policy.
• The policy aimed at making the Indian economy market-oriented and expanding the role of private and foreign investment.
• Specific changes included reducing import tariffs, decreasing taxes, opening up to foreign investment, and deregulating markets within the country to promote competition.

Additional Information

• 1992: The Securities and Exchange Board of India (SEBI) was given statutory recognition in this year.
• 1992: The Harshad Mehta scam which led to major changes in Indian Stock Market took place this year.
• 1990: The economy was under socialist-inspired policies, regulatory restrictions, and extensive protectionism, which was soon to change in the next year with the introduction of the New Economic Policies.

The correct answer is Industrialisation.

Second Five Year Plan (1956-1961):

1. The success of the First Five-year plan boosted the confidence of the leaders.
2. The agriculture growth target in the first plan was achieved, so the government quickly started looking beyond agriculture.
3. The second five-year plan focused on industry, especially heavy industry.
4. The target of a 25% increase in the national income was set through rapid industrialization.

Therefore, industrialization was the focus area for the Second Five Year Plan.

The correct answer is Sixth Plan.

Key Points

Rolling Plan

• It was started in 1978.
• The rolling plan concept was coined by Gunnar Myrdal.
• This plan was rejected again by the Indian National Congress government when it came to power in 1980 and a new sixth plan was made.
• The main advantage of the rolling plans is that they are flexible.
• The Rolling Plan is a plan in which every year the performance of the plan is assessed and a new plan is made next year based on this assessment.
• Thus, both the allocation and targets are revised during this plan.
• In India, the Janta Government terminated the fifth five-year plan in 1977-78 and launched its own sixth five-year plan for the period 1978-83 and called it a Rolling Plan.​

The correct answer is Incredible India.

Key Points

• Incredible India is the name of an international tourism campaign by the Government of India since 2002, to promote tourism in India.
  • "Incredible India" title was officially branded and promoted since 2002 to an audience of global appeal.
  • The first marketing initiative of its kind, Incredible India was conceptualized in 2002 by V Sunil (while he was Creative Director, O&M Delhi), and Amitabh Kant, Joint Secretary, Ministry of Tourism.

Additional Information

• In 2017, Actor Amitabh Bachchan and Priyanka Chopra are chosen as the brand ambassador of the Incredible India campaign.

The correct answer is  Dr. Manmohan Singh.

Key Points

• LPG model of development was introduced in 1991.
• The Finance minister from 1991-1996 was Dr. Manmohan Singh.
• Hence the correct answer is Dr. Manmohan Singh.

Important Points

• LPG Model:
  • India’s New Economic Policy was announced on July 24, 1991, which is popularly known as the LPG reforms.
  • LPG means Liberalisation, Privatisation, and Globalisation model. 
  • Liberalization- It refers to the process of making policies that are less constraining economic activity.
  • Privatization- It refers to the transfer of ownership of property or business from a government to a privately owned entity.
  • Globalization- It refers to the expansion of economic activities across political boundaries of nation-states.

Additional Information

• Salient features of LPG Policy:
  • Abolition of Industrial licensing/ Permit Raj.
  • Diluted role of the public sector enterprises.
  • Beginning of privatization.
  • Free entry to foreign investment and technology.
  • Reduction in import tariffs.
  • Deregulation of markets.
  • Reduction of taxes.

The correct answer is Russia.

Key Points

• The constitution of India has borrowed most of its provisions from the constitution of different countries in the world.
• According to Dr B R Ambedkar, the constitution of India has been framed after ransacking all the known constitutions of the world.
• The important provisions borrowed from Russia are:
  • Five-year plan.
  • Fundamental duties.

Additional Information

• The important provisions borrowed from Britain are:
  • Parliamentary form of government
  • Rule of Law.
  • Single Citizenship.
  • Office of Comptroller and Auditor General of India.
  • Bicameralism.
  • Writs.
• The important provisions borrowed from the United States are:
  • Fundamental rights.
  • Preamble.
  • Independence of judiciary.
  • Judicial review.
  • Impeachment.
  • Post of vice-president.
• The important provisions borrowed from Germany:
  • Suspension of Fundamental Rights during the emergency.

The correct answer is Second Five Year Plan.

Key Points

• Second Five-year plan (1956 to 1961)
  • The second plan was conceived in an atmosphere of economic stability.
  • It was felt agriculture could be accorded lower priority. 
  • Industries got more importance in the 2nd five-year plan. The focus was mainly on heavy industries. 
  • The Indian government boosted the manufacturing of industrial goods in the country.
  • This was done primarily to develop the public sector.
  • The Plan Focussed on rapid industrialization- heavy & basic industries.
  • Advocated huge imports through foreign loans.
  • Therefore, the Indian Government adopted a mixed economy during the second five-year plan. Hence, Option 2 is correct.
  • The Industrial Policy 1956 was based on the establishment of a socialistic pattern of society as the goal of economic policy.
  • Acute shortage of forex led to pruning of development targets, the price rise was also seen ( about 30%) vis a vis decline in the earlier Plan & the 2nd FYP was only moderately successful.

Important Points

• The 2nd year five-year plan functioned based on the Mahalanobis model. 
• The Mahalanobis model was propounded by the famous Prasanta Chandra Mahalanobis in the year 1953.
• As many as five steel plants including the ones in Durgapur, Rourkela ,Bhilai were set up as per the 2nd five-year plan. 
• During the term of the 2nd five-year plan, Atomic Energy Commission came into being.
• The Commission was established in the year 1957. 
• During the same period, the Tata Institute of Fundamental Research was born.

Additional Information

• First Five Year Plan:
  • It was launched from 1951 to 1956, under the leadership of Jawaharlal Nehru. 
  • It was based on the Harrod-Domar model with a few modifications. 
  • Its main focus was on the agricultural development of the country.
  • This plan was successful and achieved a growth rate of 3.6% (more than its target of 2.1%). 
  • At the end of this plan, five IITs were set up in the country. 
• Third Five Year Plan:
  • It was made from 1961 to 1966.
  • It is also called ‘Gadgil Yojna’, after the Deputy Chairman of Planning Commission D.R. Gadgil.
  • The target of this plan was to make the economy independent.
  • The stress was laid on agriculture and the improvement in the production of wheat. 
  • India was engaged in two wars: (1) the Sino-India war of 1962 and (2) the Indo-Pakistani war of 1965. These wars exposed the weakness in our economy and shifted the focus to the defense industry, the Indian Army, and the stabilization of the price (India witnessed inflation). 
  • The plan was a flop due to wars and drought. The target growth was 5.6% while the achieved growth was 2.4%. 
• Fourth Five Year Plan:
  • Its duration was from 1969 to 1974, under the leadership of Indira Gandhi. 
  • The two main objectives of this plan i.e. growth with stability and progressive achievement of self-reliance.
  • Fourteen major Indian banks were nationalized.
  • Indo-Pakistani War of 1971 and the Bangladesh Liberation War took place. 
  • Implementation of Family Planning Programmes was amongst major targets of the Plan
  • It failed and could achieve a growth rate of 3.3% only against the target of 5.7%.

The correct answer is option 4 i.e 1950.

Key Points

• The Planning Commission was an institution which formulated Five-Year Plans in India.
  • Planning Commission set up in 1950.
  • Planning commission was established based on the recommendation of an advisory planning board under the chairmanship of KC Neogy.
  • Headquarters: Yojana Bhavan, New Delhi.
  • Planning commission is only an advisory body.
  • The concept of planning was based on the Russian model introduced by Joseph Stalin.
  • The Prime Minister is the chairman of the planning commission.
  • Jawaharlal Nehru was the first chairman of the planning commission.
  • Deputy chairman of the planning commission was appointed by the Union Cabinet.
  • Gulzarilal Nanda was the first deputy Chairman of the Planning Commission.
• Narendra Modi government dissolved the Planning Commission in 2014.
• The planning commission was replaced by the newly formed NITI Aayog in 2015.

The correct answer is 1956-61.

Key Points

• 1956-61 was the duration of the Second Five Year Plan.
• The Second Five Year Plan was based on Mahalanobis Model.
• ​Its main focus was on the industrial development of the country.
• P. C. Mahalanobis was a famous Indian statistician who founded the Indian Statistical Institute.
• The plan lagged behind the target growth rate of 4.5% and achieved a growth rate of 4.27%.

Additional Information

• The five-year plans were one of the central plans.
• The plans were formulated and were financed by the central government.
• These were launched in 1951, with the first five-year plans covering the years 1951-56.
• There were three breaks in five-year plans during 1966-69, 1978-80, and 1991-92.
• "Twelfth Five Year Plan" duration is from 2012 to 2017, and it was under the leadership of Manmohan Singh.
• It was the last five-year plan because Niti Aayog replaced it with the planning commission.
• Its main theme was “Faster, More Inclusive and Sustainable Growth”.
• Its growth rate target was 8%.​

​

The correct answer is Third five year plan.

Key Points

• The third Five Year Plan was launched from 1961-1966 under the leadership of Pandit Jawaharlal Nehru.
  • The Deputy Chairman of the Planning commission at the time of the third five-year plan was D. R. Gadgil.
  • The plan was also known as the Gadgil Yojana.
  • The independent economy (establishment of a self-reliant and self-generating economy), agriculture, and improvement in the production of wheat were the major objectives of the plan.
  • The third Five Year Plan was affected due to drought and two wars (Sino-India war of 1962 and Indo-Pakistani war of 1965).

Additional Information

• The First five-year plan 
  • This plan was launched from 1951-1956 under the leadership of Pandit Jawaharlal Nehru.
  • It was based on the Harrod-Domar model.
  • The targeted growth rate of the plan was 2.1%.
  • The plan was successful and achieved a growth rate of 3.6% which was more than its target.
  • The agricultural development of the country was the major objective of the plan.
  • At the end of this plan, five IITs were set up in the country.
• The second five-year plan
  • ​​​This plan is based on P.C Mahalanobis Model.
  • It was planned from 1 April 1956 to 31 March 1961.
  • It is popularly known as Mahalanobis Plan.
  • The second five-year plan accords high priority to industrialization, and especially to the development of basic and heavy industries.
  • This plan includes substantial investment in iron and steel, coal and Heavy engineering, Machine building, Heavy chemicals, and Cement Industries.​
• ​Fourth-Five year Plan:
  • ​The duration of this Plan is 1969-1974 under the leadership of Indira Gandhi.
  • The two main objectives of this Plan are growth with Stability and Progressive achievement with self-reliance.
  • During this Plan, 14 major Indian Banks were nationalized.
  • At this time, the Indo-Pak war of 1971 and the Bangladesh liberation war took Place.
  • The main emphasis was on the growth rate of agriculture to enable other sectors to move forward.
  • First, two years of the plan saw record production.
  • The last three years did not measure up due to poor monsoon.
  • Implementation of Family Planning Programmes was amongst the major targets of the Plan.

Important Points

The correct answer is agricultural sector.

Key Points

• The First Five Year Plan in India was active between 1951 and 1956.
• The plan was based on the Harrod-Domar model.
• This plan gave priority to the agricultural sector of the country.
• The First Five Year Plan was presented before the parliament by Jawaharlal Nehru.
• Gulzarilal Nanda was the first Deputy Chairman of the Planning Commission of India.
• Economist K N Raj is known as the architect of this plan.
• It was quasi-successful for the government.
• The target growth rate of the First Five Year Plan was 2.1% annual gross domestic product (GDP) growth.

Additional Information

• The second Five Year Plan gave priority to the Industrial development of the country.

The correct answer is Seventh Five Year Plan.

Key Points

• BLUE REVOLUTION
  • The Blue Revolution was first launched in India as the 'Nili Kranti Mission' during the 7th Five Year Plan (1985-1990).
  • Fish Farmers Development  Agency (FFDA) was sponsored by the central government.
  • The Intensive Marine Fisheries Program was subsequently launched during the 8th Five Year Plan (1992-97).
  • As a result, the fishing harbours were later established over time in Vishakhapatnam, Kochi, Tuticorin, Porbandar, and Port Blair.
  • The scheme was restructured by the Ministry of Agriculture and Farmers Welfare along with the Department of Animal Husbandry, Dairying & Fisheries into 'Blue Revolution' by merging it with the other ongoing schemes.
  • The scheme was controlled by the National Fisheries Development Board (NFDB).
  • Following were the objectives of the Blue Revolution:
    • ​To triple the production in the marine sector by the year 2020.
    • Utilization of new technologies to transform the fisheries sector into a modern industry.
    • To double the income of fishers by improving the post-harvest activities like marketing through e-commerce, etc.
    • To promote the economically weaker sections of the society.
    • To encourage entrepreneurship development, private investment, and Public-Private Partnership (PPP) in the fisheries industry.

Additional Information

• Other important revolutions related to the agriculture sector are
  • Red Revolution - Meat and Poultry sector; 
  • Pink Revolution - Onion production, Pharmaceuticals, and Prawn production
  • White Revolution - Increasing Milk production
  • Yellow Revolution - Increasing Edible Oilseeds production
  • Green Revolution - Increasing Foodgrains production
  • Golden Revolution - Increasing Horticulture and Honey production
  • Golden Fibre Revolution - Increasing Jute Production

The correct answer is Fourth Five-year Plan - Family planning programme

Key Points

• Fourth Five-Year Plan (1969-1974)
  • The fourth Five Year Plan was the first plan launched by the Indira Gandhi government amid the pressure of drought, devaluation, and inflationary recession.
  • The country was fighting with population explosion, increased unemployment, poverty, and a shackling economy. In addition, the situation in East Pakistan (now independent Bangladesh) was becoming dire as the Indo-Pakistani War of 1971 and the Bangladesh Liberation War took place.
  • Funds earmarked for industrial development had to be used for the war effort.
  • The result was that this plan period was also no better than the third five-year plan.
  • It gave emphasis on Family planning programs to control the population.​

Additional Information

The correct option is 4 i.e., 7^th.

Key Points

• In the 7^th five-year plan Jawahar Rojgar Yojna was launched.
• Jawahar Rozgar Yojana was launched in 1989 by the Rajiv Gandhi government.
• It was implemented upon the merger of the National Rural Employment Programme (NREP) and Rural Landless Employment Guarantee Programme (RLEGP).
• The Seventh Five Year Plan (1985-1990) also laid impetus on the development of small-scale and food processing industries
• The Seventh Five Year Plan also encouraged 'Social Justice'.

All Five Year Plans:

The correct answer is Third Five-Year Plan.

Key Points

• First five-year plan was launched from 1951-1956 under the leadership of Pandit Jawaharlal Nehru.
  • It was based on the Harrod-Domar model.
  • The targeted growth rate of the plan was 2.1%.
  • The plan was successful and achieved a growth rate of 3.6% which was more than its target.
  • The agricultural development of the country was the major objective of the plan.
  • At the end of this plan, five IITs were set up in the country.

Additional Information

• The third Five Year Plan was launched from 1961-1966 under the leadership of Pandit Jawaharlal Nehru.
  • The Deputy Chairman of the Planning commission at the time of the third five-year plan was D. R. Gadgil.
  • The plan was also known as the Gadgil Yojana.
  • The independent economy, agriculture, and improvement in the production of wheat were the major objectives of the plan.
  • The third Five Year Plan was affected due to drought and two wars (Sino-India war of 1962 and Indo-Pakistani war of 1965).
• The fifth Five year Plan was launched from 1974-1978.
  • Eradication of poverty, employment, and justice was the major objective of the Fifth Five Year Plan.
  • The plan was successful and achieved a growth rate of 4.8%.
  • Indian National Highway system was introduced.
  • The newly elected Morarji Desai Government in 1978 terminated the plan.
• The seventh Five Year Plan was launched from 1985-1990 under the leadership of Rajiv Gandhi.
  • The private sector was given priority over the public sector for the first time.
  • The targeted growth rate of the plan was 5%.
  • The plan was successful and achieved a growth rate of 6.01%.
  • The establishment of a self-sufficient economy, opportunities for productive employment, up-gradation of technology, accelerating food grain production, raising productivity with a focus on food work and productivity were the major objectives of the Seventh Five Year Plan.