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Q61
(NDA-I/2024)
Economy › Growth, Development, Poverty & Employment
Official Key
Which one of the following statements regarding the objectives of the Second Five-Year Plan is not correct ?
Explanation
The Second Five-Year Plan (1956–1961), also known as the Mahalanobis Plan, shifted the focus from agriculture to rapid industrialization. Its primary objectives were:
- Development of basic and heavy industries: This was the cornerstone of the plan to build a self-reliant industrial base (Option A).
- Increase in national income: It aimed for a 25% increase in national income to raise the standard of living (Option B).
- Expansion of employment opportunities: The plan sought to create jobs through industrial growth and the promotion of cottage industries (Option D).
Option C is the correct answer (the incorrect statement) because the Second Plan specifically prioritized capital goods (heavy industry) over consumer goods. The Mahalanobis strategy argued that investing in heavy industries would lead to long-term growth, while the supply of consumer goods was largely left to the decentralized small-scale and cottage industry sector rather than being a primary objective of large-scale expansion.
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