According to Mahalanobis strategy, growth should primarily be driven by investment in:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Capital goods sector.
The Mahalanobis strategy, which formed the bedrock of India's Second Five-Year Plan (1956–1961), emphasized the development of heavy industries and the capital goods sector. P.C. Mahalanobis argued that to achieve long-term self-reliance and rapid economic growth, India needed to prioritize the domestic production of machines, steel, and power. By investing in "industries that make machines," the strategy aimed to build a strong industrial foundation, reducing dependence on foreign imports and creating a sustainable growth cycle.