Question 1

In which year was NITI Aayog (National Institution for Transforming India) established to replace the Planning Commission?

Accepted Answer

NITI Aayog was formally established on January 1, 2015, by the Government of India to replace the Planning Commission. It was created as an apex policy think tank to formulate policies and programmes for socio-economic development. Therefore, the answer is B.

Question 2

NITI Aayog replaced the Planning Commission in which year, and what does NITI stand for?

Accepted Answer

NITI Aayog (National Institution for Transforming India) was established on 1 January 2015, replacing the Planning Commission. It was created to serve as a think tank and policy advisory body for the Government of India.

Question 3

Which Five Year Plan introduced the concept of 'Inclusive Growth' as a central theme in India's economic planning?

Accepted Answer

The Eleventh Five Year Plan (2007-2012) introduced 'Inclusive Growth' as its central theme. This plan emphasized growth that benefits all sections of society and reduces regional disparities.

Question 4

Which Five Year Plan was the first to be launched in independent India?

Accepted Answer

The First Five Year Plan was launched in 1951 and ran until 1956. It was based on the Harrod-Domar growth model and focused on agriculture, irrigation, and power generation. Therefore, the answer is A.

Question 5

The Twelfth Five Year Plan of India was scheduled for which period?

Accepted Answer

The Twelfth Five Year Plan was scheduled for 2012-2017. It was the last Five Year Plan before the Planning Commission was replaced by NITI Aayog in 2015. Therefore, the answer is C.

Question 6

Which of the following is NOT a function of NITI Aayog as per its establishment mandate?

Accepted Answer

NITI Aayog functions as a policy think tank to formulate policies, foster cooperative federalism, and monitor implementation of development programmes. However, NITI Aayog does NOT have the power to allocate budgets or control fund distribution—this remains with the Ministry of Finance and Parliament. Therefore, the answer is D.

Question 7

The Second Five Year Plan of India emphasized industrialization and was based on which economic model?

Accepted Answer

The Second Five Year Plan (1956-1961) was based on the Mahalanobis Model, which emphasized rapid industrialization and the development of heavy industries. PC Mahalanobis, the chief architect, advocated for capital-intensive industries. Therefore, the answer is B.

Question 8

The Twelfth Five Year Plan (2012-2017) was the last Five Year Plan. Which body replaced the Five Year Plan system after 2017?

Accepted Answer

After the Twelfth Five Year Plan ended in 2017, the Five Year Plan system was discontinued. NITI Aayog introduced a new framework called 'National Development Agenda' and shifted to a more flexible, outcome-based planning approach with Seven-Year Perspective Plans and Three-Year Action Plans.

Question 9

In which year was the Planning Commission of India formally established, and which Five Year Plan was the first to be launched?

Accepted Answer

The Planning Commission was established on 15 March 1950. The First Five Year Plan was launched in 1951 and ran until 1956. It focused on agriculture, irrigation, and power generation.

Question 10

Which Prime Minister was in office when NITI Aayog was established, and what was the primary reason for replacing the Planning Commission?

Accepted Answer

NITI Aayog was established on 1 January 2015 under Prime Minister Narendra Modi. The Planning Commission was replaced because it was considered outdated and inflexible. NITI Aayog was designed to be a more dynamic, flexible think tank that could adapt to changing economic conditions and serve as a policy advisory body rather than a rigid planning authority.

Question 11

The Fifteenth Finance Commission (2017-2022) recommended a significant increase in the devolution of tax revenue to States. What was the recommended devolution percentage of net proceeds of Union taxes to States?

Accepted Answer

The Fifteenth Finance Commission, headed by Arvind Panagariya, recommended a devolution of 42% of net proceeds of Union taxes to States, an increase from the 32% recommended by the Fourteenth Finance Commission. This was a landmark increase in fiscal federalism, giving States greater financial autonomy.

Question 12

The Twelfth Five Year Plan (2012-2017) introduced a significant shift in India's planning approach by emphasizing 'Inclusive Growth'. Which of the following was NOT a core pillar of this plan's inclusive growth framework?

Accepted Answer

The Twelfth Five Year Plan (2012-2017) explicitly focused on inclusive growth with pillars including: faster growth, poverty reduction, employment generation, education, health, and infrastructure. Monetary policy tightening was not a core pillar of the plan's inclusive growth framework—that falls under RBI's domain, not planning commission objectives. The plan prioritized fiscal expansion and social spending to achieve inclusive outcomes. Therefore, answer is D.

Question 13

NITI Aayog replaced the Planning Commission in 2015. Which constitutional article or legislative provision directly enabled the establishment of NITI Aayog?

Accepted Answer

NITI Aayog (National Institution for Transforming India) was established through a Cabinet Resolution on January 1, 2015, not through a constitutional amendment or specific legislative act. It was created as an executive body under the Cabinet Secretariat. There is no specific constitutional article that directly 'enabled' NITI Aayog's creation—it was an administrative restructuring decision. The Planning Commission itself was created through a Cabinet Resolution in 1950, not through constitutional provision. Therefore, answer is C.

Question 14

The Eleventh Five Year Plan (2007-2012) set a target growth rate of 10% per annum. What was the primary sectoral focus that was expected to drive this ambitious growth target?

Accepted Answer

The Eleventh Five Year Plan (2007-2012) targeted 10% GDP growth, with the primary sectoral driver being the services sector (IT, financial services, telecommunications) and infrastructure development. However, the plan also emphasized agriculture and manufacturing. The key distinguishing feature was the emphasis on infrastructure as a critical enabler—the plan allocated significant resources to roads, ports, power, and telecommunications. Manufacturing was not the sole or primary focus; services and infrastructure were equally emphasized. Therefore, answer is B.

Question 15

NITI Aayog's 'Three-Year Action Agenda' (2017-2020) was designed to complement the long-term vision document. What was the primary long-term vision document that NITI Aayog released alongside this action agenda?

Accepted Answer

NITI Aayog released 'Vision 2035' as its long-term strategic document, which was complemented by the 'Three-Year Action Agenda' (2017-2020). However, the most prominent long-term vision document released by NITI Aayog was 'Strategy for New India @75' (released in 2018), which outlined India's development trajectory until 2023 (75 years after independence in 1947). The Three-Year Action Agenda (2017-2020) was a medium-term operational document. Therefore, answer is D.

Question 16

The Tenth Five Year Plan (2002-2007) introduced the concept of 'Bharat Nirman' as a major infrastructure initiative. Which of the following was NOT included as a component of the Bharat Nirman program?

Accepted Answer

Bharat Nirman, launched during the Tenth Five Year Plan, focused on six core infrastructure sectors: (1) Irrigation, (2) Roads, (3) Railways, (4) Ports, (5) Airports, and (6) Telecommunications. Healthcare infrastructure was not a designated component of Bharat Nirman; it was addressed separately through other health schemes and programs. While healthcare is important, it was not part of the Bharat Nirman framework, which was explicitly infrastructure-focused. Therefore, answer is C.

Question 17

NITI Aayog replaced the Planning Commission in 2015. Which constitutional article or government structure does NITI Aayog's establishment relate to in terms of federal coordination?

Accepted Answer

NITI Aayog (National Institution for Transforming India) was established as an advisory body to coordinate between the Union and State governments on policy matters. It operates under the framework of cooperative federalism and relates to inter-governmental coordination mechanisms. While it doesn't directly stem from a single constitutional article, its structure reflects the federal nature of Articles 245-263 (Union and State legislative powers). However, NITI Aayog is primarily a government institution created by executive order, not a constitutional body.

Question 18

The Eleventh Five Year Plan (2007-2012) set a target GDP growth rate of 10% per annum. What was the primary sectoral focus that was expected to drive this ambitious growth target?

Accepted Answer

The Eleventh Five Year Plan targeted 10% GDP growth with a focus on agriculture, manufacturing, and services sectors. However, the plan placed particular emphasis on the services sector (especially IT and financial services) and manufacturing as the primary growth drivers. Agriculture was recognized as important for inclusive growth but was not the primary driver of the 10% target. The plan expected services and manufacturing to contribute the bulk of the growth.

Question 19

Which Five Year Plan introduced the concept of 'Rolling Plan' as an alternative to the rigid five-year framework?

Accepted Answer

The Rolling Plan concept was introduced during the Sixth Five Year Plan (1980-1985) under Prime Minister Indira Gandhi. A rolling plan is a plan that is updated annually, with the terminal year being extended by one year, creating a continuous planning horizon. This was an attempt to make planning more flexible and responsive to changing economic conditions.

NDA Five Year Plans & NITI Aayog

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Five Year Plans & NITI Aayog — Practice Questions

60-Second Revision — Five Year Plans & NITI Aayog