Which of the following best describes the Mahalanobis Model adopted during the Second Five Year Plan?
Show answer & explanation
Correct answer: C
Explanation
Solution: The correct answer is Prioritized heavy industry and capital goods sector through state investment.
Explanation:
☛ The Second Five-Year Plan (1956–1961) was based on the economic development model formulated by renowned statistician Prof. Prasanta Chandra Mahalanobis.
☛ The Mahalanobis Model prioritized rapid industrialization, specifically focusing on basic and heavy capital goods industries such as steel, coal, machinery, and heavy chemicals.
☛ It was designed to build a self-reliant economy through extensive public sector investment and state control over key sectors.
☛ This strategy aimed to produce machinery within the country to foster long-term economic independence and reduce reliance on imports (import substitution).
Extra Exam-Relevant Facts:
☛ First Five-Year Plan (1951–1956): Was based on the Harrod-Domar Model and focused primarily on agriculture, irrigation, and power projects.
☛ Industrial Policy Resolution of 1956: Adopted during the Second Plan, it laid the foundation for establishing a "socialistic pattern of society" in India.
☛ Major Steel Plants: Under the Second Five-Year Plan, three major public sector steel plants were established at Bhilai (with Soviet assistance), Rourkela (with German assistance), and Durgapur (with British assistance).
☛ Atomic Energy Commission: The Tata Institute of Fundamental Research (TIFR) and atomic research programs flourished during this plan period under Dr. Homi J. Bhabha.
Important One-Liners for Upcoming Exams:
☛ Who is widely known as the 'Father of Modern Statistics in India'? → Prof. P. C. Mahalanobis
☛ When is National Statistics Day celebrated annually in India? → 29th June (birth anniversary of P. C. Mahalanobis)
☛ Which institution was founded by P. C. Mahalanobis in Kolkata in 1931? → Indian Statistical Institute (ISI)
☛ Which foreign country provided assistance to set up the Bhilai Steel Plant? → Soviet Union (USSR)
☛ What was the target growth rate and achieved growth rate of the Second Five-Year Plan? → Target: 4.5%, Achieved: ~4.27%