The correct answer is First. Explanation & Key Takeaways: • Harrod Domar model: • The 1st Five Year Plan was based on this strategy. • This strategy emphasized the role of capital accumulation’s dual character, which on the one hand, increases the national income (demand-side role) and on the other hand, increases the production capacity (supply-side role). • Targets and objectives are more or less achieved. With an active role of the state in all economic sectors. • Five Indian Institutes of Technology (IITs) were started as major technical institutions. • The objective of this plan is Rehabilitation of refugees, rapid agricultural development to achieve food self-sufficiency in the shortest possible time, and control of inflation. • According to this growth model, the rate of economic growth in an economy is dependent on the level of savings and capital-output ratio. • Thus, +-----------------------------------------------------------+ | Rate of growth (y) = Savings (s)/Capital output ratio (k) | +-----------------------------------------------------------+ • • Here, the capital-output ratio, defined as the change in capital divided by change in output measures the productivity of investment that takes place. Related Concepts: • MEANING OF ECONOMIC PLANNING: • Economic planning refers to the path of actions in terms of policy measures to be followed in the future, in pursuance of pre-determined objectives. • Planning Commission (now NITI Aayog) defines economic planning as the utilization of a country’s resources for developmental activities in accordance with national priorities. • It is a consciously and judiciously carried out process for optimum utilization of existing resources in order to fulfill some well-defined objectives. • The first five-year plan in India was launched in 1951 and since then, India has witnessed twelve Five Year Plans. • The present government had however discontinued the Five-year plan system and a new mechanism was put into place. Important Notes: • PLANNING COMMISSION: • After independence in 1950, the Planning Commission was set up under the chairmanship of Pt Jawaharlal Nehru. • It was to formulate plans for the economic development of the country on the basis of the available physical, capital, and human resources. • The Planning Commission is essentially a non-political and non-constitutional advisory body, which makes recommendations to the government. • It was set up through an executive order of the Union Government on 15th March 1950. • National Institution for Transforming India (NITI Aayog) Introduction of NITI Aayog: • NITI Aayog or National Institution for Transforming In dia Aayog is a policy ‘think- tank’ of government that replaces the Planning Commission and aims to involve states in economic policy-making. • It will be providing strategic and technical advice to the central and the State Governments. • Prime Minister heads the Aayog as its Chairman.