The Second Five Year Plan (1956-1961), often associated with the Mahalanobis Model, marked a significant shift in India's develop…

Question

The Second Five Year Plan (1956-1961), often associated with the Mahalanobis Model, marked a significant shift in India's development strategy. What was the primary focus of this plan?

1. A. Rapid industrialization with a particular emphasis on the development of basic and heavy industries. (Correct answer)
2. B. Establishing an export-oriented economy to integrate rapidly with global trade markets.
3. C. Achieving immediate self-sufficiency in food grain production through the Green Revolution.
4. D. Maximizing the role of the private sector in the 'commanding heights' of the economy.

Correct Answer

Option A — Rapid industrialization with a particular emphasis on the development of basic and heavy industries.

Detailed Solution & Explanation

The correct answer is Rapid industrialization with a focus on heavy industry.

Key Points

• The Second Five Year Plan (1956-61) was built on the Mahalanobis model, which prioritised building the capacity to produce capital goods — the machines that make other goods.
• The reasoning was that heavy industry would lay the foundation for long-run growth, even at the cost of slower gains in consumer goods.
• Immediate food self-sufficiency and private-sector expansion were not its priorities; agriculture had been the focus of the First Plan.

Additional Information

• P. C. Mahalanobis, who framed the model, also founded the Indian Statistical Institute and is regarded as the architect of Indian statistical systems.
• The plan gave effect to the Industrial Policy Resolution of 1956, which reserved core industries for the public sector and set the pattern for decades.
• The steel plants at Bhilai (USSR), Rourkela (Germany) and Durgapur (UK) were established under this plan.
• Plan-by-plan focus worth memorising: First — agriculture (Harrod-Domar model); Second — heavy industry; Third — self-reliance, disrupted by war; Fourth — growth with stability.