Question

The strategy of industrialization of the second five year plan had the following element/s :

(i) Increase the rate of investment as the development depends upon the rate of
investment.
(ii) Rapid expansion of productive power by increasing the proportion of investment in
heavy and capital goods sectors.
(iii) Providing more conducive atmosphere to the private sector.
(iv) Increasing the scope and importance of public sector.

• A. (i), (ii) and (iii)
• B. (ii), (iii) and (iv)
• C. (i), (ii) and (iv)
• D. (i), (iii) and (iv)

Answer 1

Answer:

C. (i), (ii) and (iv)

1. The second five-year plan focused on industry, especially heavy industry.
2. The target of 25% Increase in the national income was set through rapid industrialization.
3. The second five year plan is based on so called Mahalanobis model.
4. This was the USSR model indianized by PC Mahalanobis, the founder of Indian Statistical Institute and a close aide of Nehru.
5. This model is known to have set the statistical foundations for state-directed investments and created the intellectual underpinnings of the license-raj through an elaborate input-output model.
6. This Model suggested that there should be an emphasis on the heavy industries, which can lead the Indian Economy to a long term higher growth path. 
7. India’s second five year plan and Industrial policy Resolution 1956, which paved the way for development of Public Sector  and license raj; were based upon this model.

Key Points

1. Steel mills at Bhilai, Durgapur, and Rourkela were established in second five year plan.
2. Enhanced coal production and more railway lines were introduced in this plan.
3. Atomic Energy Commission was formed in 1957 with Homi J. Bhabha as the first chairman.
4. Tata Institute of Fundamental Research was established as a research institute.
5. In 1957 a talent search and scholarship program was begun to find talented young students to train for work in nuclear power.