SSC CPO 2025 PYQ — Question 68

Answer: The Second Five-Year Plan.

Explanation —

India's Second Five-Year Plan (1956–1961), which was based on the model of the renowned statistician P.C. Mahalanobis, is known for its objective of 'rapid industrialization.' During this plan, the government placed special emphasis on heavy industries and infrastructure (such as steel plants and coal mining).

Since India lacked high-tech machinery and capital goods at that time, these had to be imported from abroad on a large scale. To finance these massive imports, India had to rely heavily on foreign loans and foreign exchange reserves. Consequently, economists criticized this approach, as it increased pressure on the country's balance of payments and began to precipitate a foreign exchange crisis. It was under this very plan that large public-sector steel plants were established in Bhilai, Durgapur, and Rourkela.

Additional Points —

Fourth Five-Year Plan (1969–74): The primary objective of this plan was to achieve 'Growth with Stability' and 'Self-Reliance.' It was during this period that 14 banks were nationalized and the Green Revolution was initiated.

Sixth Five-Year Plan (1980–85): This plan laid the foundation for economic liberalization and focused on poverty alleviation (through programs such as the IRDP).

Eighth Five-Year Plan (1992–97): This plan was based on the Rao-Manmohan Model and was the first plan implemented following the LPG (Liberalization, Privatization, and Globalization) reforms.

The First Five-Year Plan was based on the 'Harrod-Domar Model' and focused primarily on agriculture.

Potential Exam Questions and Answers —

Question: Which Five-Year Plan is known as the 'Mahalanobis Plan'?

Answer: The Second Five-Year Plan.

Question: Which institution has replaced the Planning Commission in India?

Answer: NITI Aayog (effective from January 1, 2015).