Which Five-Year Plan is also known as the 'Mahalanobis Plan'?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Second Plan.
The Second Five-Year Plan (1956–1961) is known as the 'Mahalanobis Plan', named after the eminent statistician and economist P.C. Mahalanobis. This plan focused on rapid industrialization and prioritized the development of heavy industries, believing that a strong industrial base was essential for long-term economic growth. It adopted the Mahalanobis model, which emphasized investment in capital goods industries over consumer goods. While it achieved progress in building infrastructure and industries, it also faced challenges such as food shortages. Nonetheless, it laid the foundation for India’s industrial development and shaped the direction of future economic planning.