Which Five-year plan is also called Mahalanobis plan?
Show answer & explanation
Correct answer: B
Explanation
Correct Answer
Second Five Year Plan
Explanation
The Second Five Year Plan (1956–1961) is widely known as the Mahalanobis Plan because it was based on the economic model developed by the renowned Indian statistician and economist Prasanta Chandra Mahalanobis. This plan marked a significant shift in India's development strategy by prioritizing rapid industrialization, specifically focusing on the development of capital-intensive heavy industries.
Key Points
The Mahalanobis model focused on long-term economic growth through the strategic allocation of investment towards heavy industries like steel, coal, and heavy machinery. This strategy aimed to build a self-reliant economy by reducing dependency on imports for basic industrial materials. Key industrial milestones during this period included the establishment of major steel plants in Bhilai, Durgapur, and Rourkela, which laid the infrastructure foundation for India's subsequent industrial modernization.
Important Questions and Answers
Question: On which model was the First Five Year Plan based?
Answer: The First Five Year Plan was based on the Harrod-Domar model, which prioritized agriculture, irrigation, and power projects to stabilize the economy after independence.
Question: What was the primary objective of the Mahalanobis model?
Answer: The primary objective was to accelerate industrial growth by investing in the capital goods sector, thereby creating a robust base for future industrial output and economic self-sufficiency.