Question

Given below are two statements marked as Assertion (A) and Reason (R). Read these statements and choose the correct answer from the given options :
Assertion (A) : The idea of Five Year Plans (FYP) in India was inspired by the USSR.
Reason (R) : Due to acute economic crisis, the Indian Government started ‘Plan Holiday' in 1966.

• A. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
• B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
• C. Assertion (A) is false, but Reason (R) is true.
• D. Assertion (A) is true, but Reason (R) is false.

Hint:

- Soviet Model $\rightarrow$ Inspiration for Indian 5-Year Planning (1950). - 1966–1969 Plan Holiday $\rightarrow$ Caused by 1962/65 wars + severe droughts + foreign exchange crisis.

Answer 1

The Correct Option is B

Concept: Understanding the origins of economic planning in India and the historical events leading to economic policy shifts during the 1960s.

Step 1: Evaluation of Assertion (A).
Assertion (A) states that the model of Five Year Plans in India was inspired by the Union of Soviet Socialist Republics (USSR). Prime Minister Jawaharlal Nehru was heavily impressed by the central planning model of the Soviet Union. India adopted state-directed economic planning and Five-Year Plans upon independence. Thus, Assertion (A) is True.

Step 2: Evaluation of Reason (R).
Reason (R) states that the Indian government declared a 'Plan Holiday' in 1966 due to acute economic crisis. Following two major wars (1962 with China and 1965 with Pakistan), severe consecutive droughts, devaluation of the Rupee, and food shortages, the Fourth Five-Year Plan could not be launched on time. Instead, the government implemented three Annual Plans (1966–1969), popularly termed as the 'Plan Holiday'. Thus, Reason (R) is True.

Step 3: Evaluating the explanatory relationship.
Although both statements are factually correct, Reason (R) explains why planning was briefly suspended in 1966, not why India originally chose the Soviet planning model in 1950. Hence, Reason (R) is not the correct logical explanation for Assertion (A).