With reference to India’s Five-Year Plans, which of the following statements is/are correct?

1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital goods industries.
2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.

Select the correct answer using the code given below.

Statement 1 is correct: The Second Five-Year Plan was based on the Nehru-Mahalanobis model and focused on the development of basic and capital goods industries to promote import substitution.

Statement 2 is correct: The Fourth Five-Year Plan aimed to address the growing concentration of wealth and economic power. It sought to promote social justice, reduce income and wealth disparities, and address regional imbalances.

Statement 3 is incorrect: The financial sector was considered important even before the Fifth Five-Year Plan. The First Five Year Plan (1951-1956) emphasized the role of central banking in resource allocation for developmental activities. The plan recognized the need for creating financial mechanisms to support development across the country. Therefore, the financial sector's inclusion was not unique to the Fifth Five-Year Plan.

Hence, statements 1 and 2 are correct.

Sources:

• Planning Commission - Fourth Five Year Plan
• Shodhganga - Role of Financial Sector in Economic Development
• [MOSPI - Statistical Year Book India](http://mospi.nic.in/sites/default/files/Statistical_year_book_india_chapters/Five%20Y ear%20Plan%20writeup_0.pdf)
• Planning Commission - Fifth Five Year Plan