Which one of the following is not a feature of the Nehru-Mahalanobis model of development strategy?

The Nehru-Mahalanobis model, adopted during the Second Five-Year Plan, was a state-led development strategy that prioritized heavy industrialization and the capital goods sector [2]. It emphasized the development of 'machines producing machines' to achieve self-reliance and long-term growth. A core feature was the dominant role of the public sector, which was intended to occupy the 'commanding heights' of the economy. Consequently, the model involved significant state intervention and the expansion of public enterprises [1]. In contrast, industrial deregulation and disinvestment in the public sector are hallmarks of the New Industrial Policy of 1991, which marked a shift away from the Nehru-Mahalanobis regime toward liberalization and market-oriented reforms. Therefore, option 3 is not a feature of the original Nehru-Mahalanobis strategy.

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 6: Indian Economy [1947 – 2014] > 2nd Five Year Plan (1956 - 61) > p. 207
2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 6: Economic Planning in India > Nehru–Mahalanobis Model (adopted in the 2nd FYP) > p. 135