Read this first

What this unit actually tests — and what to skip

This is one of the most predictable units in Paper 1. Questions are almost entirely recall: a year, a plan number, a model name, a body’s composition. Very little reasoning is required, so it is a high-return unit for the time you spend.

Study this — high probability

Definition and features of economic planning.
Types of planning — especially imperative vs indicative, and perspective vs annual.
Objectives of Indian planning (the standard six).
Pre-independence plans and who proposed each.
Planning Commission — date, nature, who headed it.
First, Second, Third, Fifth, Eighth and Twelfth Plans by name and model.
Plan Holiday and Rolling Plan.
NITI Aayog — full form, date, composition, functions.
Planning Commission vs NITI Aayog differences.
Aspirational Districts Programme, SDG India Index, Atal Innovation Mission.

Skip or skim — low yield

Plan-wise outlay figures in crores. Almost never asked, impossible to retain.
Detailed sub-targets of the 6th, 7th, 9th and 10th Plans.
Names of every Deputy Chairman of the Planning Commission.
Full lists of NITI Aayog verticals and division names.
Rank-wise state scores in NITI indices — these change yearly and are not examinable.
Detailed theory of Soviet or Chinese planning models.

A word on current names IIBF sets questions from its own courseware, which is revised periodically. Names of current office-holders are rarely asked in JAIIB itself, but they do appear in other banking exams. Where a name has changed recently, this page gives both the historical fact and the present position so you are covered either way.

Definitions and classification

What economic planning means

Economic planningThe deliberate and conscious use of a country’s resources, by a central authority, to achieve clearly defined economic and social goals within a fixed time period.

H.D. Dickinson’s definitionPlanning is the making of major economic decisions — what and how much is to be produced, how and to whom it is to be allocated — by a conscious decision of a determinate authority, on the basis of a comprehensive survey of the economic system as a whole. This is the definition most often quoted in the courseware.

Essential features of planning

Central authority

A single body frames and coordinates the plan — in India, first the Planning Commission and then NITI Aayog.

Defined objectives

Goals are stated in advance and are measurable, not vague aspirations.

Fixed time frame

Every plan runs for a stated period — five years in India’s case, with annual plans in between where needed.

Resource survey

Planning begins with an assessment of available human, natural and capital resources.

Priorities

Because resources are scarce, sectors are ranked in order of importance.

Coordination

Centre, states and public and private sectors must move in the same direction for a plan to work.

Types of planning — the pairs examiners use

Type	Meaning	Where India fits
Imperative (directive)	Targets are binding; the State commands production. Typical of socialist economies.	Not India
Indicative	Targets guide rather than command; the private sector is persuaded through incentives.	India, from the Eighth Plan (1992–97) onwards
Democratic	Plans are framed and approved through elected institutions, with public discussion.	India
Totalitarian	Plans imposed by an authoritarian State without consultation.	Not India
Centralised	A single central authority takes all planning decisions.	India’s early plans leaned this way
Decentralised	Planning flows upward from the local level. Basis of the 73rd and 74th Amendments.	India’s stated direction today
Perspective	Long-term plan, typically 15–20 years, broken into shorter plans.	Used in India
Annual	One-year plan, used when a Five Year Plan cannot be framed.	Used in 1966–69 and 1990–92
Rolling	Targets are revised every year and the plan period rolls forward continuously.	India, 1978–80
Financial vs physical	Financial planning allocates money; physical planning allocates real resources such as manpower and materials.	India used both
Planning by inducement	The State uses taxes, subsidies and incentives instead of orders.	India’s current method

Two names to attach The rolling plan concept is credited to the Swedish economist Gunnar Myrdal. India’s rolling plan (1978–80) was introduced by the Janata Government under D.T. Lakdawala, and was discontinued when the Congress returned in 1980.

The standard six

Objectives of economic planning in India

Learn these six as a set. A common question format gives you four options and asks which is not an objective.

01 — Growth

Raise national income and per capita income by increasing production across agriculture, industry and services.

02 — Modernisation

Upgrade technology and change the structure of the economy so that industry and services grow relative to agriculture.

03 — Self-reliance

Reduce dependence on imports and foreign aid, particularly in food and essential industrial goods.

04 — Equity / social justice

Reduce inequality of income and wealth and improve the position of weaker sections.

05 — Employment

Create productive jobs and reduce disguised and seasonal unemployment.

06 — Poverty reduction

Bring people above the poverty line and raise the standard of living. The Fifth Plan made this its headline goal.

Related add-ons that also appear Balanced regional development, price stability, and — in later plans — sustainable development and inclusive growth. The Eleventh Plan introduced “inclusive growth” as a formal theme and the Twelfth added “sustainable”.

Before 1947

Pre-independence planning attempts

Straight matching questions: plan name to the person who proposed it. This is one of the most reliably asked blocks in the unit.

Plan	Year	Proposed by	Core idea
Visvesvaraya Plan	1934	M. Visvesvaraya	Book Planned Economy for India; aimed to double national income in ten years by shifting labour from agriculture to industry. Regarded as the first concrete plan for India.
National Planning Committee	1938	Set up by the Indian National Congress; chaired by Jawaharlal Nehru	First organised effort at national planning; work disrupted by the Second World War.
Bombay Plan	1944	Eight industrialists including J.R.D. Tata, G.D. Birla, Purushottamdas Thakurdas	Fifteen-year plan seeking a large State role in industrialisation.
Gandhian Plan	1944	S.N. Agarwal	Focus on village-level, decentralised, cottage and small industry.
People’s Plan	1945	M.N. Roy	Drafted for the Indian Federation of Labour; based on nationalisation of agriculture and collective production.
Sarvodaya Plan	1950	Jayaprakash Narayan	Inspired by Gandhian ideas and Vinoba Bhave’s Bhoodan movement; self-reliant villages.

Memory link Visvesvaraya = Very first. Bombay = Businessmen. Gandhian = Gram (village). People’s = Proletariat, so M.N. Roy the Marxist. Sarvodaya = JP Narayan.

The institution, 1950–2014

The Planning Commission and the NDC

Planning Commission

Set up on 15 March 1950 by a Cabinet resolution.
Neither a constitutional nor a statutory body — this is the single most-asked fact about it.
Chairman: the Prime Minister, ex officio. Day-to-day work was run by the Deputy Chairman, who held Cabinet Minister rank.
First Chairman: Jawaharlal Nehru. First Deputy Chairman: Gulzarilal Nanda. Last Deputy Chairman: Montek Singh Ahluwalia.
Its authority came from Article 39 and the Directive Principles, which direct the State to secure equitable distribution of resources.
Dissolved and replaced by NITI Aayog with effect from 1 January 2015.

National Development Council (NDC)

Set up on 6 August 1952, also by executive resolution — again not constitutional or statutory.
Its job was to give final approval to the Five Year Plans after the Planning Commission drafted them.
Composition: Prime Minister as Chairman, all Union Cabinet Ministers, Chief Ministers of all States, administrators of Union Territories and members of the Planning Commission.
Often called the “super cabinet” of India.
It has not met since the arrival of NITI Aayog, whose Governing Council now performs a comparable role.

Do not confuse these three Planning Commission / NITI Aayog — executive body, no constitutional status. Finance Commission — constitutional body under Article 280, decides sharing of taxes between Centre and States. NDC — executive body that approved plans. Only the Finance Commission is constitutional, and it was never abolished.

1951 to 2017

All twelve Five Year Plans at a glance

Growth rates are approximate and vary slightly by source. Focus on the plan name, period, model and theme — that is what gets asked.

Plan	Period	Model / Theme	Target vs Achieved	Remember for
First	1951–56	Harrod–Domar model; agriculture, irrigation and power	2.1% vs 3.6%	Successful. Post-partition rehabilitation. IITs and community development programme.
Second	1956–61	P.C. Mahalanobis model; heavy and basic industries	4.5% vs 4.3%	Industrial Policy Resolution 1956. Steel plants at Bhilai, Durgapur, Rourkela.
Third	1961–66	Self-reliant and self-generating economy; agriculture and industry together	5.6% vs 2.4%	A failure — 1962 and 1965 wars, and a severe drought.
Plan Holiday	1966–69	Three Annual Plans instead of a Five Year Plan	—	Caused by war, drought and the 1966 rupee devaluation.
Fourth	1969–74	“Growth with stability” and progressive self-reliance	5.6% vs 3.3%	Gadgil formula for plan assistance. Bank nationalisation 1969.
Fifth	1974–79	Garibi Hatao — poverty removal and self-reliance	4.4% vs 4.8%	Drafted by D.P. Dhar. Terminated a year early in 1978 by the Janata Government.
Rolling Plan	1978–80	Gunnar Myrdal’s rolling concept	—	Introduced by the Janata Government; scrapped in 1980.
Sixth	1980–85	Poverty removal and technological self-reliance	5.2% vs 5.7%	NABARD set up in 1982. IRDP expanded.
Seventh	1985–90	“Food, Work and Productivity”	5.0% vs 6.0%	Jawahar Rozgar Yojana, 1989.
Annual Plans	1990–92	Two Annual Plans	—	Political instability and the 1991 balance-of-payments crisis.
Eighth	1992–97	Human resource development; first plan after the LPG reforms	5.6% vs 6.8%	Shift to indicative planning. India joined the WTO in 1995.
Ninth	1997–2002	“Growth with Social Justice and Equality”	6.5% vs 5.4%	Launched in the 50th year of independence.
Tenth	2002–07	Double per capita income in ten years	8.0% vs ~7.6%	First plan to set state-wise growth targets. Monitorable targets introduced.
Eleventh	2007–12	“Faster and More Inclusive Growth”	9.0% vs ~8.0%	“Inclusive growth” enters the policy vocabulary.
Twelfth	2012–17	“Faster, More Inclusive and Sustainable Growth”	8.0% vs ~6.7%	The last Five Year Plan.

The four themes worth memorising word-for-word 5th — Garibi Hatao. 7th — Food, Work and Productivity. 11th — Faster and More Inclusive Growth. 12th — Faster, More Inclusive and Sustainable Growth. These are quoted verbatim in options.

The balance sheet

What planning achieved, and where it fell short

Achievements

National income and per capita income rose steadily; growth moved well above the pre-1950 rate.
A strong capital goods and heavy industry base was built, largely through public sector units.
Food self-sufficiency was achieved after the Green Revolution; India moved from importing food to holding buffer stocks.
The savings and investment rate rose sharply from the low levels of the 1950s.
Major expansion of infrastructure — power, irrigation, transport — and of education and health facilities.
Development of institutions: IITs, IIMs, NABARD, SIDBI, public sector banks and development finance institutions.

Failures and criticism

Seven of the twelve plans fell short of their growth targets.
Poverty and unemployment remained high despite being stated objectives from the Fifth Plan onward.
Inequality of income and regional imbalance widened rather than narrowed.
The “Licence Raj” created inefficiency, delays and rent-seeking in industry.
Many public sector units ran chronic losses and absorbed scarce capital.
Planning was top-down — states had little say, and local needs were poorly reflected.
Weak implementation, cost overruns and poor monitoring of outcomes.

Why the shift happened — likely exam framing By 2014 the economy was market-driven rather than State-directed, states demanded a greater voice, and a single national blueprint no longer suited a diverse federation. The answer to “why was the Planning Commission replaced?” is: to move from top-down, one-size-fits-all planning with fund allocation powers, to a bottom-up advisory think-tank built on cooperative federalism.

From 1 January 2015

NITI Aayog: formation, structure and functions

Full formNational Institution for Transforming India. In Sanskrit, “niti” means policy or moral conduct. “Aayog” means commission.

Nature and dateCreated by a Union Cabinet resolution dated 1 January 2015. Like its predecessor, it is neither a constitutional nor a statutory body, and it is the premier policy think-tank of the Government of India.

Composition — learn this as a list

Component	Who
Chairperson	The Prime Minister of India
Vice-Chairperson	Appointed by the Prime Minister; holds the rank of a Cabinet Minister
Governing Council	Chief Ministers of all States, Chief Ministers of UTs with legislatures, and Lieutenant Governors of other UTs
Regional Councils	Formed for a specific period to address issues affecting more than one state; convened by the Prime Minister
Full-time members	Experts; hold the rank of Minister of State
Part-time members	Maximum two, from leading universities and research organisations, on a rotational basis
Ex-officio members	Maximum four members of the Union Council of Ministers, nominated by the Prime Minister
Chief Executive Officer	Appointed by the Prime Minister for a fixed tenure; holds the rank of Secretary to the Government of India
Special Invitees	Experts and specialists nominated by the Prime Minister

The three numbers to lock in Part-time members: maximum 2. Ex-officio members: maximum 4. CEO rank: Secretary, Vice-Chairperson rank: Cabinet Minister. These four facts cover most composition questions.

Office-holders — historical facts and current position

Post	First holder	As of August 2026
Chairperson	The Prime Minister (ex officio)	The Prime Minister (ex officio)
Vice-Chairperson	Arvind Panagariya (2015–2017)	Ashok Kumar Lahiri, who took charge in May 2026 after Suman Bery (2022–2026). Rajiv Kumar held the post 2017–2022.
Chief Executive Officer	Sindhushree Khullar	Nidhi Chhibber, succeeding B.V.R. Subrahmanyam (2023–2026). Amitabh Kant held the post 2016–2022.

JAIIB tends to ask the first Vice-Chairperson and CEO rather than the current ones. Learn Panagariya and Khullar first; treat the current names as general-awareness backup.

Objectives and functions

Cooperative federalism

Foster genuine partnership with states through continuous structured support, so that national goals are built up from state-level plans.

Village-level plans

Develop mechanisms to formulate credible plans at the village level and aggregate them upward.

Inclusion of the left-behind

Pay special attention to sections of society at risk of not benefiting adequately from economic progress.

Knowledge hub

Act as a repository of good governance practices and provide advice and partnerships with think-tanks and research institutions.

Monitoring and evaluation

Actively monitor implementation of programmes and evaluate outcomes — done through the DMEO, the Development Monitoring and Evaluation Office.

Conflict resolution

Offer a platform for resolving inter-sectoral and inter-departmental issues to speed up the development agenda.

The two hubs — a favourite MCQ Team India Hub — manages engagement between states and the Centre. Knowledge and Innovation Hub — builds NITI Aayog’s think-tank capability and research base.

Planning documents that replaced Five Year Plans

15-year Vision

A long-term Vision Document setting the direction of national development.

7-year Strategy

A medium-term Strategy Document converting the vision into policy direction. Published as “Strategy for New India @75” in December 2018.

3-year Action Agenda

A short-term Action Agenda aligned with the Finance Commission cycle. The first covered 2017–18 to 2019–20.

The overarching goal today is Viksit Bharat @2047 — making India a developed nation by the centenary of independence. NITI Aayog is the nodal body coordinating this vision.

Programmes and indices

NITI Aayog’s key initiatives

Learn what each one measures or does. You will not be asked for rankings — those change every year and are not examinable.

Aspirational Districts Programme

Launched in January 2018 covering 112 of India’s most under-developed districts.
Built on three core principles: Convergence, Collaboration and Competition — the “3 Cs”.
Five themes with weights: Health & Nutrition (30%), Education (30%), Agriculture & Water Resources (20%), Financial Inclusion & Skill Development (10%), Basic Infrastructure (10%).
Districts are ranked on a Delta ranking — improvement over their own past performance, not absolute level.
Extended in January 2023 as the Aspirational Blocks Programme, covering 500 blocks.

Atal Innovation Mission (AIM)

Set up in 2016 under NITI Aayog to promote innovation and entrepreneurship.
Atal Tinkering Labs (ATL) — innovation labs in schools.
Atal Incubation Centres (AIC) — support for startups.
Atal New India Challenges and Atal Community Innovation Centres.
Continued as AIM 2.0, approved by the Cabinet in 2024 and funded up to March 2028.

Indices published by NITI Aayog

Index	What it measures
SDG India Index	Progress of states and UTs on the UN Sustainable Development Goals. First released in December 2018. India’s own SDG tracking tool.
National Multidimensional Poverty Index (MPI)	Poverty measured through health, education and standard of living rather than income alone. Based on the Alkire–Foster method.
India Innovation Index	Innovation capability and performance of states and UTs.
Composite Water Management Index	State performance on water resource management.
Export Preparedness Index	Export readiness of states and UTs.
Fiscal Health Index	Fiscal performance of states. First released in January 2025.
Health Index and School Education Quality Index	State performance in health outcomes and school education.

Watch this trap The global Multidimensional Poverty Index is published by UNDP with OPHI. The National MPI for India is published by NITI Aayog. Similarly, the Human Development Index is UNDP’s, not NITI Aayog’s. Options often mix these up.

The comparison that always appears

Planning Commission vs NITI Aayog

Point of difference	Planning Commission (1950–2014)	NITI Aayog (2015 onwards)
Nature	Executive body by Cabinet resolution; not constitutional or statutory	Same — executive body by Cabinet resolution
Role	Framed and imposed Five Year Plans	Advisory think-tank; no plan-making power
Approach	Top-down, Centre to State	Bottom-up, cooperative federalism
Fund allocation	Allocated funds to states and ministries	No power to allocate funds — that now rests with the Finance Ministry
Role of states	States participated mainly through the NDC	States are equal partners through the Governing Council
Second in command	Deputy Chairman	Vice-Chairperson
Secretary-level head	Secretary or Member Secretary	Chief Executive Officer, appointed for a fixed tenure
Part-time members	Had none	Provided for, maximum two
Policy imposition	Could impose policies on states	Cannot impose; acts as adviser and facilitator

The trick option to watch for “NITI Aayog is a constitutional body” is false. “NITI Aayog allocates funds to states” is false. “NITI Aayog replaced the Finance Commission” is false. These three wrong statements are used repeatedly as distractors.

One-page fact sheet

Dates and numbers cheat sheet

Item	Answer
Visvesvaraya Plan	1934 — Planned Economy for India
National Planning Committee	1938 — chaired by Jawaharlal Nehru
Bombay Plan	1944 — eight industrialists
People’s Plan	1945 — M.N. Roy
Planning Commission	15 March 1950, by Cabinet resolution
National Development Council	6 August 1952
First Five Year Plan	1951–56, Harrod–Domar model
Second Five Year Plan	1956–61, Mahalanobis model
Plan Holiday	1966–69
Fifth Plan theme	Garibi Hatao; terminated in 1978
Rolling Plan	1978–80; concept of Gunnar Myrdal
Seventh Plan theme	Food, Work and Productivity
Indicative planning begins	Eighth Plan, 1992–97
Eleventh Plan theme	Faster and More Inclusive Growth
Twelfth Plan	2012–17 — the last Five Year Plan
NITI Aayog formed	1 January 2015
NITI Aayog full form	National Institution for Transforming India
First Vice-Chairperson / CEO	Arvind Panagariya / Sindhushree Khullar
Part-time and ex-officio members	Maximum 2 and maximum 4
Aspirational Districts Programme	January 2018 — 112 districts, 3 Cs, 5 themes
Aspirational Blocks Programme	January 2023 — 500 blocks
Atal Innovation Mission	2016
SDG India Index first edition	December 2018
Planning documents	15-year Vision, 7-year Strategy, 3-year Action Agenda

Practice — tap an option to reveal the answer

50 exam-style MCQs with explanations

Tap any option: the correct choice turns green, a wrong pick turns red, and the explanation opens below. Your score updates as you go.

Attempted 0/50 · Correct 0 · Accuracy 0%

Set A — Concept, types and objectives

Question 01Economic planning essentially involves:

ALetting market forces decide all economic activity
BConscious use of resources by a central authority to achieve defined goals in a fixed period
CAnnual preparation of the Union Budget
DRegulation of banks by the RBI

Answer: B. The three essentials are a central authority, clearly defined objectives, and a fixed time frame.

Question 02The definition of planning as “the making of major economic decisions by a determinate authority” is attributed to:

AGunnar Myrdal
BH.D. Dickinson
CP.C. Mahalanobis
DAmartya Sen

Answer: B. Dickinson’s definition is the one quoted in the JAIIB courseware, so learn the phrasing.

Question 03Planning in which targets are guidelines rather than binding commands is called:

AImperative planning
BIndicative planning
CTotalitarian planning
DPhysical planning

Answer: B. India adopted indicative planning from the Eighth Plan (1992–97), after the 1991 reforms. Imperative planning is the socialist model where targets are binding.

Question 04The concept of the “rolling plan” is credited to:

AD.T. Lakdawala
BGunnar Myrdal
CHarrod and Domar
DJ.R.D. Tata

Answer: B. Myrdal, a Swedish economist, gave the concept. Lakdawala implemented it in India during 1978–80 under the Janata Government.

Question 05Which of the following is not an objective of economic planning in India?

AReduction of income inequality
BAchieving self-reliance
CComplete elimination of the private sector
DEmployment generation

Answer: C. India chose a mixed economy. Planning aimed to guide the private sector, never to abolish it.

Question 06A plan covering a long horizon of 15 to 20 years, broken into shorter plans, is called:

APerspective planning
BAnnual planning
CFunctional planning
DRolling planning

Answer: A. Perspective planning sets the long-term direction; the shorter plans inside it carry the operational detail.

Question 07Planning by inducement means the State influences the economy mainly through:

ADirect orders to producers
BTaxes, subsidies and incentives
CNationalising all industries
DFixing all wages by law

Answer: B. Its opposite is planning by direction, where the authority issues binding instructions. India relies on inducement.

Question 08Decentralised planning in India received constitutional backing through:

AThe 42nd Amendment
BThe 73rd and 74th Amendments
CThe 101st Amendment
DThe 86th Amendment

Answer: B. The 73rd and 74th Amendments (1992) gave constitutional status to Panchayati Raj institutions and urban local bodies, the base of bottom-up planning.

Set B — Pre-independence plans and the Planning Commission

Question 09The book Planned Economy for India was written by:

AM.N. Roy
BM. Visvesvaraya
CS.N. Agarwal
DJayaprakash Narayan

Answer: B. Published in 1934, it is regarded as the first concrete plan for India and aimed to double national income in ten years.

Question 10The National Planning Committee set up in 1938 was chaired by:

AMahatma Gandhi
BJawaharlal Nehru
CSardar Patel
DSubhas Chandra Bose

Answer: B. It was set up by the Indian National Congress, with Nehru as chairman. Note: Subhas Chandra Bose, as Congress President, was instrumental in its creation, but Nehru chaired it.

Question 11The Bombay Plan of 1944 was prepared by:

AThe Congress Working Committee
BA group of eight leading industrialists
CThe Indian Federation of Labour
DThe British colonial government

Answer: B. Signed by industrialists including J.R.D. Tata, G.D. Birla and Purushottamdas Thakurdas. It was a fifteen-year plan that sought a strong State role in industrialisation.

Question 12The People’s Plan of 1945 was drafted by:

AM.N. Roy
BS.N. Agarwal
CJayaprakash Narayan
DVinoba Bhave

Answer: A. Prepared for the Indian Federation of Labour, it emphasised nationalisation of agriculture and collective production.

Question 13The Sarvodaya Plan of 1950 was put forward by:

AM. Visvesvaraya
BM.N. Roy
CJayaprakash Narayan
DG.D. Birla

Answer: C. It drew on Gandhian principles and Vinoba Bhave’s Bhoodan movement, stressing self-reliant villages.

Question 14The Planning Commission of India was:

AA constitutional body under Article 280
BA statutory body created by an Act of Parliament
CAn executive body created by a Cabinet resolution
DA body created by a Presidential order

Answer: C. Set up on 15 March 1950 by resolution — neither constitutional nor statutory. This is the single most-asked fact about it.

Question 15The National Development Council was established in:

A1950
B1951
C1952
D1956

Answer: C. Set up on 6 August 1952 to give final approval to Five Year Plans. Often called India’s “super cabinet”.

Question 16Who was the ex-officio Chairman of the Planning Commission?

AThe President of India
BThe Prime Minister of India
CThe Finance Minister
DThe Deputy Chairman

Answer: B. The Prime Minister chaired it, but the Deputy Chairman ran it day to day and held Cabinet Minister rank. NITI Aayog follows the same pattern with a Vice-Chairperson.

Set C — The Five Year Plans

Question 17The First Five Year Plan was based on which model?

AHarrod–Domar model
BMahalanobis model
CGadgil formula
DWage-goods model

Answer: A. The First Plan (1951–56) focused on agriculture, irrigation and power. It exceeded its target, achieving about 3.6% against 2.1%.

Question 18The Second Five Year Plan gave priority to:

AAgriculture and irrigation
BHeavy and basic industries
CPoverty removal
DExport promotion

Answer: B. Based on the Mahalanobis model and backed by the Industrial Policy Resolution 1956. Steel plants at Bhilai, Durgapur and Rourkela belong to this period.

Question 19Which Five Year Plan is generally regarded as a failure due to wars and drought?

AFirst
BSecond
CThird
DFourth

Answer: C. The Third Plan (1961–66) achieved only about 2.4% against a 5.6% target because of the 1962 and 1965 wars and a severe drought.

Question 20The “Plan Holiday” period in India was:

A1962–65
B1966–69
C1978–80
D1990–92

Answer: B. Three Annual Plans were framed instead of a Five Year Plan, following war, drought and the 1966 devaluation of the rupee.

Question 21“Garibi Hatao” was the central slogan of which plan?

AFourth
BFifth
CSixth
DSeventh

Answer: B. The Fifth Plan (1974–79) targeted poverty removal and self-reliance. It was terminated a year early in 1978 by the Janata Government.

Question 22The Rolling Plan was in operation during:

A1966–69
B1978–80
C1980–85
D1990–92

Answer: B. Introduced by the Janata Government and discontinued when the Congress returned to power in 1980.

Question 23The theme “Food, Work and Productivity” belonged to which plan?

ASixth
BSeventh
CEighth
DNinth

Answer: B. The Seventh Plan (1985–90) exceeded its target, achieving about 6% against 5%. Jawahar Rozgar Yojana was launched in 1989 during this plan.

Question 24India adopted indicative planning from which plan onwards?

ASixth
BSeventh
CEighth
DTenth

Answer: C. The Eighth Plan (1992–97) was the first after the 1991 LPG reforms, and shifted the State’s role from controller to facilitator.

Question 25Two Annual Plans were framed in 1990–92 mainly because of:

AA war with a neighbouring country
BPolitical instability and the balance-of-payments crisis
CA severe famine
DThe dissolution of the Planning Commission

Answer: B. The Eighth Plan could not begin on schedule, so two Annual Plans bridged the gap until 1992.

Question 26The theme “Faster and More Inclusive Growth” belonged to:

AThe Tenth Plan
BThe Eleventh Plan
CThe Twelfth Plan
DThe Ninth Plan

Answer: B. The Eleventh Plan (2007–12) introduced “inclusive growth”. The Twelfth added the word “Sustainable” to the same phrase.

Question 27The Twelfth Five Year Plan covered the period:

A2007–12
B2012–17
C2015–20
D2017–22

Answer: B. It was the last Five Year Plan. NITI Aayog was created in 2015, but the Twelfth Plan ran its full course to 2017.

Question 28How many Five Year Plans has India had in total?

ATen
BEleven
CTwelve
DThirteen

Answer: C. Twelve Five Year Plans between 1951 and 2017, plus Annual Plans during 1966–69 and 1990–92 and a Rolling Plan during 1978–80.

Question 29Approximately how many of the twelve plans fell short of their growth targets?

AThree
BFive
CSeven
DTen

Answer: C. Seven of the twelve plans recorded lower growth than targeted — a figure the courseware states explicitly.

Question 30NABARD was established during which Five Year Plan?

AFourth
BFifth
CSixth
DSeventh

Answer: C. NABARD was set up in 1982, within the Sixth Plan (1980–85).

Set D — NITI Aayog: formation and structure

Question 31NITI Aayog came into existence on:

A15 August 2014
B1 January 2015
C1 April 2015
D1 January 2016

Answer: B. Created by a Union Cabinet resolution dated 1 January 2015, replacing the Planning Commission.

Question 32NITI in “NITI Aayog” stands for:

ANational Institute of Technology and Innovation
BNational Institution for Transforming India
CNational Initiative for Transforming India
DNew India Transformation Institution

Answer: B. Note the exact wording — “Institution”, not “Institute” or “Initiative”. Options often differ only in that one word.

Question 33NITI Aayog is:

AA constitutional body
BA statutory body
CNeither constitutional nor statutory
DA regulatory authority

Answer: C. Like the Planning Commission, it was created by executive resolution. “NITI Aayog is a constitutional body” is a standard false option.

Question 34The Chairperson of NITI Aayog is:

AThe President of India
BThe Prime Minister of India
CThe Finance Minister
DThe Vice-Chairperson

Answer: B. The Prime Minister is Chairperson ex officio. The Vice-Chairperson, appointed by the PM, holds Cabinet Minister rank.

Question 35The first Vice-Chairperson of NITI Aayog was:

AArvind Panagariya
BRajiv Kumar
CSuman Bery
DAmitabh Kant

Answer: A. Panagariya served from January 2015 to August 2017, followed by Rajiv Kumar, then Suman Bery, and from May 2026 Ashok Kumar Lahiri. Amitabh Kant was a CEO, not a Vice-Chairperson.

Question 36The Chief Executive Officer of NITI Aayog holds the rank of:

ACabinet Minister
BMinister of State
CSecretary to the Government of India
DJoint Secretary

Answer: C. The CEO is appointed by the Prime Minister for a fixed tenure and holds Secretary rank. Full-time members hold Minister of State rank.

Question 37The maximum number of part-time members in NITI Aayog is:

AOne
BTwo
CFour
DSix

Answer: B. Maximum two part-time members from leading universities and research organisations, on a rotational basis. Ex-officio members are capped at four.

Question 38The Governing Council of NITI Aayog includes:

AOnly Union Cabinet Ministers
BChief Ministers of all states and Lieutenant Governors of Union Territories
COnly members of Parliament
DState Finance Secretaries

Answer: B. It also covers Chief Ministers of UTs with legislatures. The Governing Council is the main expression of cooperative federalism.

Question 39Which body within NITI Aayog handles monitoring and evaluation of programmes?

ATeam India Hub
BKnowledge and Innovation Hub
CDevelopment Monitoring and Evaluation Office (DMEO)
DAtal Innovation Mission

Answer: C. DMEO evaluates government schemes and programme outcomes. The Team India Hub handles state engagement; the Knowledge and Innovation Hub builds research capability.

Question 40Which of the following is not a function of NITI Aayog?

AFostering cooperative federalism
BAllocating plan funds to state governments
CMonitoring and evaluating programmes
DActing as a knowledge and innovation hub

Answer: B. NITI Aayog has no fund allocation power. That responsibility moved to the Ministry of Finance.

Question 41Regional Councils of NITI Aayog are convened by:

AThe Vice-Chairperson
BThe Prime Minister
CThe CEO
DThe Finance Commission

Answer: B. They are formed for a specified period to address issues affecting more than one state or region, and are convened by the Prime Minister.

Question 42The three-tier planning documents that replaced Five Year Plans are:

A10-year Vision, 5-year Strategy, 2-year Agenda
B15-year Vision, 7-year Strategy, 3-year Action Agenda
C20-year Vision, 10-year Strategy, 5-year Agenda
D25-year Vision, 15-year Strategy, 5-year Agenda

Answer: B. Remember the sequence 15–7–3. The Strategy Document was published as “Strategy for New India @75” in December 2018.

Set E — Initiatives, indices and comparisons

Question 43The Aspirational Districts Programme was launched in:

A2015
B2016
C2018
D2020

Answer: C. Launched in January 2018 covering 112 under-developed districts, built on the three Cs — Convergence, Collaboration and Competition.

Question 44How many districts were covered under the Aspirational Districts Programme?

A100
B112
C115
D500

Answer: B. 112 districts. Do not confuse this with the Aspirational Blocks Programme of January 2023, which covers 500 blocks.

Question 45Under the Aspirational Districts Programme, which two themes carry the highest weight?

ABasic Infrastructure and Agriculture
BHealth & Nutrition and Education, at 30% each
CFinancial Inclusion and Skill Development
DWater Resources and Basic Infrastructure

Answer: B. Health & Nutrition 30%, Education 30%, Agriculture & Water Resources 20%, Financial Inclusion & Skill Development 10%, Basic Infrastructure 10%.

Question 46Atal Tinkering Labs are set up under:

AThe Ministry of Education
BThe Atal Innovation Mission of NITI Aayog
CThe Department of Science and Technology
DThe Finance Commission

Answer: B. AIM was established in 2016 under NITI Aayog. It also runs Atal Incubation Centres and Atal New India Challenges.

Question 47The National Multidimensional Poverty Index for India is released by:

AUNDP
BThe World Bank
CNITI Aayog
DThe Reserve Bank of India

Answer: C. The global MPI is published by UNDP with OPHI; the national MPI is NITI Aayog’s. It measures health, education and standard of living.

Question 48Which of these indices is published by NITI Aayog?

AHuman Development Index
BSDG India Index
CGlobal Hunger Index
DEase of Doing Business Index

Answer: B. First released in December 2018, it tracks state and UT progress on the Sustainable Development Goals. HDI belongs to UNDP.

Question 49Which statement correctly distinguishes NITI Aayog from the Planning Commission?

ANITI Aayog is constitutional; the Planning Commission was not
BNITI Aayog follows a bottom-up approach and cannot allocate funds
CNITI Aayog can impose policies on states
DNITI Aayog frames Five Year Plans

Answer: B. The Planning Commission was top-down and allocated funds; NITI Aayog is an advisory think-tank built on cooperative federalism.

Question 50Which body did not get abolished when NITI Aayog was created?

AThe Planning Commission
BThe Finance Commission
CBoth were abolished
DNeither was abolished

Answer: B. The Finance Commission is a constitutional body under Article 280 and continues to be appointed every five years. Only the Planning Commission was replaced.

Night-before revision

30 one-liners to read on exam day

1. Planning definition to remember: H.D. Dickinson.

2. India follows indicative, democratic, decentralised planning.

3. Indicative planning began with the Eighth Plan, 1992–97.

4. Rolling plan concept: Gunnar Myrdal; India used it 1978–80.

5. Visvesvaraya Plan 1934 — Planned Economy for India.

6. National Planning Committee 1938 — chaired by Nehru.

7. Bombay Plan 1944 — eight industrialists.

8. Gandhian Plan 1944 — S.N. Agarwal.

9. People’s Plan 1945 — M.N. Roy.

10. Sarvodaya Plan 1950 — Jayaprakash Narayan.

11. Planning Commission 15 March 1950, by Cabinet resolution.

12. Planning Commission was neither constitutional nor statutory.

13. NDC set up 6 August 1952; approved the Five Year Plans.

14. 1st Plan 1951–56, Harrod–Domar, agriculture — successful.

15. 2nd Plan 1956–61, Mahalanobis, heavy industry.

16. 3rd Plan 1961–66 — a failure due to wars and drought.

17. Plan Holiday 1966–69 — three Annual Plans.

18. 5th Plan — Garibi Hatao; terminated early in 1978.

19. 7th Plan — Food, Work and Productivity.

20. Annual Plans again in 1990–92 due to the BoP crisis.

21. 11th Plan — Faster and More Inclusive Growth.

22. 12th Plan 2012–17 — the last Five Year Plan.

23. Seven of twelve plans missed their growth targets.

24. NITI Aayog — 1 January 2015, by Cabinet resolution.

25. Full form: National Institution for Transforming India.

26. First VC Arvind Panagariya; first CEO Sindhushree Khullar.

27. Part-time members max 2; ex-officio members max 4; CEO ranks as Secretary.

28. Documents: 15-year Vision, 7-year Strategy, 3-year Action Agenda.

29. Aspirational Districts 2018 — 112 districts, 3 Cs, 5 themes.

30. NITI Aayog cannot allocate funds and did not replace the Finance Commission.

How to attempt this unit in the exam

Answer these questions first. They are pure recall and take seconds, freeing time for the calculation-heavy parts of the paper.
Watch for negative framing — “which is not an objective”, “which body was not abolished”. Misreading these costs easy marks.
When a question names a plan by its theme rather than its number, translate the theme first, then answer.
If an option says NITI Aayog is constitutional, statutory, or allocates funds, it is wrong. Eliminate immediately.
There is no negative marking in JAIIB, so attempt every question after eliminating the obviously false options.

Economic Planning in India