Aligned with the objective of state control over vital sectors of the economy, the Industrial Policy of Resolution of 1956 was enacted, serving as the foundation for the ___________ Five Year Plan.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. second.
The Industrial Policy Resolution of 1956 was aligned with the objective of state control over key sectors of the economy, emphasizing public sector-led industrialization in strategic industries such as steel, heavy machinery, and energy. This policy provided the foundation for the Second Five-Year Plan (1956–1961), which focused on rapid industrial growth, infrastructure development, and self-reliance. The plan followed the Mahalanobis model, prioritizing investment in the capital goods and heavy industries to lay the groundwork for long-term economic development, while also promoting balanced regional development and modernizing agriculture to support industrial expansion.