How was India's adoption of a 'socialist pattern of society,' particularly from the Second Five Year Plan onward, primarily reflected in its economic structure?
Show answer & explanation
Correct answer: B
Explanation
Solution: The correct answer is Extensive state control over key industries and infrastructure.
Explanation:
☛ In 1955, at the Avadi Session of the Indian National Congress, India formally accepted the goal of establishing a 'socialist pattern of society'.
☛ This vision was implemented primarily during the Second Five-Year Plan (1956–1961), formulated under the guidance of statistician P. C. Mahalanobis.
☛ The strategy focused on the development of heavy industries and capital goods, requiring huge capital investments that private players were unable to provide at the time.
☛ Under the Industrial Policy Resolution (IPR) 1956, the state assumed direct control over the commanding heights of the economy, reserving basic and strategic industries (like steel, coal, power, and railways) exclusively or predominantly for the public sector.
Extra Exam-Relevant Facts:
☛ Industrial Policy Resolution (IPR) 1956: Classified industries into three categories—Schedule A (completely under State ownership, 17 industries), Schedule B (progressively State-owned, 12 industries), and Schedule C (left to the private sector under licensing regulations).
☛ Three major public sector steel plants were established during the Second Plan: Bhilai (with Soviet assistance), Rourkela (with West German assistance), and Durgapur (with British assistance).
☛ The First Five-Year Plan (1951–1956) was based on the Harrod-Domar model and prioritized agriculture, irrigation, and power.
Important One-Liners for Upcoming Exams:
☛ Which session of the Indian National Congress adopted the resolution for a 'socialist pattern of society'? → Avadi Session (1955 presided by U. N. Dhebar)
☛ Which Five-Year Plan is known as the 'Mahalanobis Plan'? → Second Five-Year Plan (1956–1961)
☛ Which policy resolution is often referred to as the 'Economic Constitution of India'? → Industrial Policy Resolution (IPR) 1956
☛ Where was the Planning Commission of India established, and in which year? → New Delhi, in March 1950
☛ The Bhilai Steel Plant in Chhattisgarh was set up with the collaboration of which country? → Soviet Union (USSR)