Understanding the Second Five Year Plan

India's Five Year Plans were a series of nationwide economic and social planning initiatives. Each plan had specific goals and strategies for development. The second plan holds particular significance due to its focus on heavy industry and achieving a 'socialist pattern of society'.

Focus and Goals of the Second Five Year Plan

The Second Five Year Plan (1956-1961) shifted the focus from agriculture, which was the primary focus of the first plan, to rapid industrialization, particularly in heavy and basic industries. The main objectives included:

• Rapid industrialization with particular emphasis on the development of basic and heavy industries.
• Development of the public sector.
• A large increase in income to raise the standard of living.
• Reducing inequalities in income and wealth.
• Achieving a 'socialist pattern of society'.

This plan aimed to lay the foundation for future industrial growth and self-reliance.

The Brains Behind the Plan: P.C. Mahalanobis

The Second Five Year Plan was based on a development model developed by the renowned Indian statistician Prasanta Chandra Mahalanobis. This model is known as the Mahalanobis model. It focused on investing heavily in capital goods industries to build up the economy's capacity for future growth.

Due to the significant influence of this model and the central role played by P.C. Mahalanobis in drafting the plan's framework, the Second Five Year Plan is very commonly referred to as the Mahalanobis Plan.

Examining Other Options

• Nehru Plan: While Jawaharlal Nehru was the Prime Minister during the period of the Five Year Plans and a strong advocate for planning and socialism, the plans were typically named after the model or chief architect rather than the Prime Minister.
• Harrod-Domar Plan: The first Five Year Plan (1951-1956) was largely based on the Harrod-Domar model, which focused on savings, investment, and economic growth. The second plan used a different model, the Mahalanobis model.
• Socialistic Plan: While the Second Five Year Plan did aim for a 'socialist pattern of society', 'Socialistic Plan' is not the common or official name for this specific plan. The name commonly associated with it is the Mahalanobis Plan because of the underlying economic model and its architect.

Therefore, the Second Five Year Plan, which called for the establishment of a socialist pattern of society and focused on heavy industries, is commonly referred to as the Mahalanobis Plan because it was based on the economic model developed by P.C. Mahalanobis.

Revision Table: Comparing Early Five Year Plans

Additional Information on Indian Planning

The concept of economic planning in India was inspired by the Soviet model. The Planning Commission of India was established in 1950 to formulate these plans. The goal was to achieve rapid and balanced economic development across the nation. The Second Five Year Plan was a crucial step in India's path towards industrial self-sufficiency, although it also faced challenges like inflation and foreign exchange shortages.

The 'socialist pattern of society' aimed at ensuring equitable distribution of income and wealth, reducing disparities, and expanding the public sector to control the 'commanding heights' of the economy.