Answer:
Fourth Five Year plan was the first plan launched by 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 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.
Notable Points
India fought yet another war with Pakistan and helped in creation of Bangladesh. Needed to tackle the problem of Bangladeshi refugees after the 1971 war.
Nationalization of 14 major Indian Banks was a key even during this war. This boosted the confidence of the people in banking system and started greater mobilization of private savings into banking system.
