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.
Options :

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Always test Assertion-Reason questions by putting 'BECAUSE' between the statements: "Five Year Plans were inspired by USSR *because* in 1966 India declared a Plan Holiday." -> This connection makes no logical sense, making Option (B) correct!
Updated On: Aug 11, 2026
  • Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
  • Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  • Assertion (A) is false, but Reason (R) is true.
  • Assertion (A) is true, but Reason (R) is false.
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The Correct Option is B

Solution and Explanation

Concept: Planning in India was adopted right after independence to achieve rapid economic development, equitable distribution, and poverty alleviation. India set up the Planning Commission in 1950 to formulate Five Year Plans.

Step 1:
Analyzing Assertion (A).
Assertion (A) states that the idea of Five Year Plans (FYP) in India was inspired by the USSR. This statement is True. Jawaharlal Nehru and Indian political planners were deeply influenced by the centralized socialist planning model of the Soviet Union (Gosplan), which was seen as a successful path for rapid industrial transformation and economic development.

Step 2:
Analyzing Reason (R).
Reason (R) states that due to an acute economic crisis, the Indian Government started a 'Plan Holiday' in 1966. This statement is also True. Following two major wars (1962 Sino-Indian War and 1965 Indo-Pak War), successive severe droughts (1965–1966), food shortages, inflation, and devaluation of the Rupee, the government was unable to execute the Fourth Five Year Plan immediately. Instead, three annual plans were implemented from 1966 to 1969, known as the 'Plan Holiday'.

Step 3:
Determining if Reason (R) is the correct explanation of Assertion (A).
While both statements are factually correct independent historical truths, Reason (R) explains why the planning process was temporarily suspended in 1966, whereas Assertion (A) explains the origin/inspiration of the planning system in 1950. Hence, Reason (R) is NOT the correct explanation for Assertion (A). Thus, Option (B) is the correct choice.
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