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The Eighth Five Year Plan (1992-97) is associated with which major shift in India's planning approach?

The Eighth Plan marked a shift to indicative planning, where the government guides rather than directs the economy and markets and the private sector play a bigger role. This followed the 1991 liberalisation. The heavy industry model and Garibi Hatao belonged to earlier plans.

  1. AAdoption of the Mahalanobis heavy industry model
  2. BIntroduction of indicative planning with a greater role for the market following the 1991 reformsCorrect
  3. CNationalisation of major banks as the central goal
  4. DGaribi Hatao as the main slogan with public sector dominance

Explanation

The Eighth Plan began just after the 1991 reforms and moved from directive planning to indicative planning, with the market and private sector playing a larger role. Mahalanobis model belonged to the Second Plan, and Garibi Hatao to the Fifth Plan.

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