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Science & Technology·Easy

Which of the following events took place during the 4th Five Year Plan? 1. Nationalization of private banks 2. Bangladesh Liberation War 3. Oil crisis, leading to high inflation 4. Smiling Buddha nuclear test Select the correct answer using the code given below:

Which of the following events took place during the 4th Five Year Plan?

1. Nationalization of private banks

2. Bangladesh Liberation War

3. Oil crisis, leading to high inflation

4. Smiling Buddha nuclear test

Select the correct answer using the code given below:

Options

  1. a.

    1, 2 and 3 only

  2. b.

    2, 3 and 4 only

  3. c.

    1, 3 and 4 only

  4. d.

    1, 2, 3 and 4

    Correct answer

Explanation

• The Fourth Five Year Plan (1969-1974) was the first plan launched by the Indira Gandhi government, amid 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 the 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.

• Nationalization of 14 major Indian banks was a key, even during this war. This boosted the confidence of the people in the banking system and started greater mobilization of private savings into the banking system.

• At the end of this plan, India also performed the Smiling Buddha underground nuclear test in 1974. This test was partially in response to the US deployment of the Seventh Fleet in the Bay of Bengal. The international community took several harsh measures against India, which affected the domestic economy.

• The Oil Crisis of 1973 skyrocketed the oil and fertilizer prices, leading to a very high inflation.

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