Second Five-Year Plan of India

which of the following statements are true about the Second Five-Year Plan of India?

i) It emphasized industrial development, especially heavy industries.
ii) It was based on the Mahalanobis model of economic planning.
iii) Agriculture was given highest priority over industry

  1. (i) only
  2. (i) and (ii) only
  3. (i) and (iii) only
  4. (ii) and (iii) only

EXPLANATION

The Second Five-Year Plan (1956–1961) was a crucial stage in India’s economic development. It laid the foundation for a socialist pattern of society and emphasized rapid industrialization, especially the growth of heavy industries.

1️⃣ Statement (i): “It emphasized industrial development, especially heavy industries.” — ✅ True

  • The main objective of the Second Five-Year Plan was to build a strong industrial base for India.

  • The focus was on heavy industries such as:

    • Iron and steel

    • Machine tools

    • Heavy engineering

    • Chemicals

    • Power and transport infrastructure

Reason:
India wanted to become self-reliant in producing capital goods instead of depending on imports.
This would create a multiplier effect on the entire economy by supporting other industries and increasing employment.

2️⃣ Statement (ii): “It was based on the Mahalanobis model of economic planning.” — ✅ True

  • The plan was based on the Mahalanobis Model, designed by Prof. P. C. Mahalanobis, an eminent statistician and member of the Planning Commission.

  • The model emphasized:

    • Development of the capital goods sector (industries producing machines, equipment, etc.)

    • Reduction of dependence on foreign imports

    • Long-term economic growth through capacity building in industrial sectors

In simple terms:
Instead of focusing on immediate consumption, India invested in industries that could produce goods needed to make other goods—like steel and machinery.

3️⃣ Statement (iii): “Agriculture was given highest priority over industry.” — ❌ False

  • Agriculture was important but secondary to industrial development in this plan.

  • The plan believed that industrialization would, in the long run, boost agricultural productivity by supplying better tools, fertilizers, and infrastructure.

  • Therefore, industry, not agriculture, received the highest priority.

Objectives of the Second Five-Year Plan:

  1. Achieve rapid industrialization, especially in heavy industries.

  2. Build a strong foundation for long-term economic growth.

  3. Reduce income inequalities and regional imbalances.

  4. Move towards a socialist pattern of society.

Outcome:

  • Led to the establishment of major industries such as:

    • Bhilai, Rourkela, and Durgapur Steel Plants.

  • Created a base for India’s industrial expansion.

  • However, it faced issues like:

    • Foreign exchange shortages,

    • Slow agricultural growth, and

    • Rising inflation.

✅ Final Answer: (i) and (ii) only

Because:
The Second Five-Year Plan emphasized heavy industrial development and was based on the Mahalanobis model, while agriculture was not given the highest priority.

Second Five-Year Plan of India