Economic History of India

Option (4) is correct.

The eighth plan was postponed by two years because of political uncertainty at the centre, worsening balance of payment position and inflation during 1990-91. These were the key issues during the launch of the plan.
The plan undertook drastic policy measures to combat the bad economic situation and to undertake an annual average growth of 5.6%
Some of the main economic outcomes during the eighth plan period were rapid economic growth, high growth of agriculture, allied sector and manufacturing sector, growth in exports and imports and improvement in trade and current account deficit.

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. 

Planning and the Poor is authored by B. S. Minhas (Bhagwati Sahni Minhas), a prominent Indian economist and member of the Planning Commission. The work critically examines the impact of economic planning on poverty allevication in India during the planned development era.

India's initial planning phase (1950-1980) was characterized by autarchic trade policy through import substitution, massive extension of the public sector, and extensive red tapism due to bureaucratic controls. However, it did NOT witness symbiotic growth of the private sector, which was severely stifled through the licensing regime and restrictions rather than being nurtured.

The Hindu Rate of Growth refers to the low annual growth rate of the socialist economy of India before 1991, which stagnated around 3.5% from 1950s to 1980s, while per capita income growth averaged 1.3%. 

Economist Raj Krishna coined the term Hindu Rate of Growth in 1978, referring to India's approximately 3.5% average annual GDP growth rate from 1950 to 1980. The term, meant to describe the sluggish growth under planned development, was controversial and later abandoned after economic reforms accelerated growth.

Correct Answer: 1 and 3

In 1991, India faced its worst balance of payments crisis since independence, with foreign exchange reserves depleted to just 3 weeks of imports. The government pledged 47 tonnes of gold to the Bank of England to secure a $400 million loan. This emergency measure, which included airlifting gold in July 1991, helped avert default and triggered economic liberalization.

Post-1991 economic liberalization in India actually REDUCED government regulation across sectors. The tertiary sector (services) was deregulated and opened to private and foreign investment, not subjected to new regulation. Options A, B, and D are genuine features of post-1991 reforms: FDI was encouraged, public monopolies were checked, and the License Raj (licensing system) was dismantled.

The economic liberalisation in India refers to ongoing economic reforms in India that started on July 24, 1991. After Independence in 1947, India adhered to socialist policies. Attempts were made to liberalise the economy in 1966 and 1985. The first attempt was reversed in 1967. Thereafter, a stronger version of socialism was adopted. Second major attempt was in 1985 by Prime Minister Rajiv Gandhi.

Option (3) is the correct answer. 

The Fourth Five Year Plan (1969-74) explicitly adopted poverty alleviation as a primary objective for the first time in India's planning history. It introduced programs like the Rural Works Programme and focused on redistributive policies. Earlier plans prioritized industrialization and agriculture over direct poverty intervention.

India’s Second Five-Year Plan (1956-61):- The second plan was to set India on the path of industrialization. P.C. Mahalanobis was the moving spirit behind the second five year plan. He gave the highest priority to strengthening the industrial base of the economy.
It was in this light that the 1948 Industrial Policy Resolution was revised and the new resolution of 1956 was adopted. There was emphasis on the expansion of the public sector and establishment of a socialistic pattern of society.