Question

The Second Five Year plan was based upon the ideas of which of the following statisticians?

• A. Jayanta Kumar Ghosh
• B. Prasanta Chandra Mahalanobis
• C. Debabrata Basu
• D. Samarendra Nath Roy

Answer 1

Answer:

B. Prasanta Chandra Mahalanobis

Prasanta Chandra Mahalanobis and the Second Five Year Plan

• The Second Five Year Plan (1956-1961) in India was significantly influenced by the economic ideas and statistical models developed by Prasanta Chandra Mahalanobis.
• Mahalanobis, a renowned Indian statistician and scientist, is considered the father of statistics in India.
• He founded the Indian Statistical Institute (ISI) in Kolkata, which became a premier institution for statistical research and training.
• The core of Mahalanobis's model, often referred to as the Mahalanobis Model or the Two-Sector Model, focused on rapid industrialization, particularly in the heavy industries sector.
• This model emphasized maximizing long-term economic growth through investment in capital goods and infrastructure. It advocated for a large increase in the proportion of investment in capital goods.
• The Second Five Year Plan aimed at increasing national income by 25%, accelerating industrialization, and creating a larger number of employment opportunities.
• Key objectives included a substantial expansion of basic and heavy industries, as well as the promotion of village and small-scale industries.
• The plan's emphasis on heavy industries led to the establishment of major industrial projects, such as the Bhilai, Durgapur, and Rourkela steel plants.
• Mahalanobis's contribution was crucial in shaping India's post-independence economic development strategy, shifting the focus from agriculture to industrial growth.