The Mahalanobis strategy outlines a specific approach to economic development aimed at accelerating industrial growth.
Mahalanobis Strategy's Investment Focus
This economic model emphasizes the importance of strategic investment to boost a nation's productive capacity. The core principle is that growth is fundamentally linked to the ability to produce more goods and services over time.
Prioritizing Capital Goods for Growth
The Mahalanobis strategy argues that the most effective way to enhance this production capacity is through focused investment in the capital goods sector. Capital goods, such as machinery, equipment, and tools, are essential for creating other goods.
- Mechanism: Investing in the capital goods sector directly increases the economy's ability to manufacture the means of production.
- Outcome: This expansion in manufacturing capacity paves the way for higher output of both capital goods and consumer goods in subsequent periods, driving long-term economic growth.
- Rationale: The strategy prioritizes building this industrial foundation over immediate increases in consumer goods, viewing it as the key to sustained development.
Consequently, according to the Mahalanobis strategy, economic growth should primarily be fueled by investment in the capital goods sector.
Similar Questions
- What was the main rationale for the policy of import substitution during the first seven Five Year Plans?
- Read the below statements marked as Assertion (A) and Reason (R). Mark the correct option:
Assertion (A): In macroeconomics, treating a single commodity as representative of all goods allows simplification of aggregate analysis.
Reason (R): This is because all individual goods always behave identically under inflationary trends. - What was the primary aim of import substitution policy in India’s early planning era?
- Read the below statements marked as Assertion (A) and Reason (R). Mark the correct option:
Assertion (A): GDP doesn’t really tell the whole story when it comes to how well people in a country are actually doing.
Reason (R): That’s mainly because it doesn’t take into account stuff like wear and tear of machines, pollution, or even how the money is divided among people. - The term 'Navratnas' in public sector reform refers to:
- Expansionary fiscal policy is NOT characterized by:
- What was a key equity-based goal of land reforms implemented after independence?
- Economic reforms in India were introduced in which year?
- Which of the following is an example of a capital receipt?
- How does Indian planning demonstrate responsiveness to feedback?
Important Questions from Economy
The Five Year Plan was first launched in
Which of the following was/were the feature(s) of Lenin’s New Economic Policy (NEP) for the Soviet Union?
1) Private retail trading was strictly forbidden
2) Private enterprise was strictly forbidden
3) Peasants were not allowed to sell their surplus
4) To secure liquid capital, concessions were allowed to foreign capitalists, but the State retained the option of purchasing the product of such concerns
Select the correct answer using the code given below:
Which one of the following was set as a target of average growth of GDP of India over the plan period 2012-2017 by the Approach Paper to the Twelfth Five year Plan?
In ________ economies, all productive resources are owned and controlled by the government.
Private ownership of the means of production is a feature of a _______ economy.
