The Eighth Five-Year Plan is noted for its significant increase in outlay compared to prior plans, which is why option 1 is the correct answer. The increased outlay demonstrates a higher level of financial commitment towards achieving the plan`s goals. Now, analyzing the other options:

Option 2 suggests that this plan focused majorly on agricultural and rural development. While several Five-Year Plans have prioritized these areas, the distinguishing factor of the Eighth plan wasn`t primarily this.

Option 3 indicates an emphasis on infrastructure growth. Again, many plans have emphasized this, but this wasn`t the main differentiating factor for the Eighth Plan.

Option 4 suggests that industrial licensing was abolished. While it`s true that India began liberalizing its economy around this time, abolishing industrial licensing was not a characteristic unique to the Eighth Five-Year Plan, as the process started earlier and continued during the later plans as well. Hence, this cannot be considered the critical difference between the Eighth Five-Year Plan and its predecessors.