UPSC Prelims 2009·GS1·economy·planning

Consider the following statements regarding Indian Planning: 1. The Second Five-Year Plan emphasised on the establishment of heavy industries. 2. The Third Five-Year Plan introduced the concept of import substitution as a strategy for industrialisation. Which of the statements given above is/are correct?

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  1. A1 onlyCorrect
  2. B2 only
  3. CBoth 1 and 2
  4. DNeither 1 nor 2

Explanation

Statement 1 is correct. The Second Five-Year Plan (1956-1961), based on the P.C. Mahalanobis model, laid strong emphasis on rapid industrialization, particularly the development of heavy and basic industries like steel, coal, and heavy engineering. Statement 2 is incorrect. While import substitution was a crucial strategy for industrialization in India, it was not introduced by the Third Five-Year Plan. The concept of import substitution as a strategy for industrialization was a fundamental aspect of India's economic policy from the Second Five-Year Plan onwards, reflecting a broader goal of self-reliance and reducing dependence on foreign goods. The Third Plan continued this strategy, but did not introduce it. Therefore, only statement 1 is correct.
economy: Consider the following statements regarding Indian Planning: 1. The Second Five-Year Plan emphasised on the establishmen
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