Which of the following Five-Year Plans marked a strategic transition in India's economic policy, shifting the primary focus from agriculture to the development of heavy industries and industrialization?
Show answer & explanation
Correct answer: B
Explanation
Answer: The Second Five-Year Plan.
Explanation —
India's Second Five-Year Plan (1956–1961) marked a historic turning point in the country's economic policy. While the primary focus of the First Plan was on 'agriculture,' the Second Plan was based on the model devised by the renowned statistician Prashanta Chandra Mahalanobis also known as the 'Mahalanobis Model.' The primary objective of this plan was rapid industrialization.
The government strategically focused its attention on the development of heavy industries and infrastructure. It was during this plan that major steel plants were established in the public sector at Bhilai (with the assistance of Russia), Durgapur (with the assistance of Britain), and Rourkela (with the assistance of Germany). The aim of this policy was to make India self-reliant and to lay the foundation for long-term economic growth.
Additional Points —
First Five-Year Plan (1951–56): This was based on the 'Harrod-Domar Model' and prioritized irrigation and agriculture.
Fourth Five-Year Plan (1969–74): Its objective was to achieve 'Growth with Stability' and 'Self-Reliance.'
Fifth Five-Year Plan (1974–78): Its main slogan was 'Garibi Hatao' (Abolish Poverty).
The Planning Commission was established on March 15, 1950; it has now been replaced by 'NITI Aayog.'
Potential Exam Questions and Answers —
Question: Which plan is known as the 'Mahalanobis Model'?
Answer: The Second Five-Year Plan.
Question: What was the period of the 'Plan Holiday' in India?
Answer: During 1966–1969.