CA Foundation · Business Economics · Indian Economy
The Mahalanobis model, which shaped India's Second Five Year Plan (1956-61), placed primary emphasis on which of the following?
The Mahalanobis model behind the Second Five Year Plan emphasised rapid growth of heavy and capital goods industries, with the public sector leading investment. Agriculture-centred strategy belonged to the First Plan, while export-led liberalisation emerged only after 1991.
- ARapid development of heavy and capital goods industries through public sector investmentCorrect
- BPromotion of agriculture and community development as the main driver of growth
- CExport-led growth through removal of import controls
- DPoverty removal through direct employment guarantee schemes
Explanation
The Second Plan, based on the Mahalanobis model, stressed rapid industrialisation with priority to heavy and basic industries such as steel and machinery, led by the public sector. Agriculture and community development were the focus of the First Plan, so option 2 is wrong. Export-led liberalisation came much later, after 1991.
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