Which of the following economic models formed the basis of the Second Five-Year Plan?
Mahalanobis heavy-industry model
The Second Five-Year Plan (1956–1961) was based on the Mahalanobis Model, named after the statistician Prasanta Chandra Mahalanobis who designed it.
The model emphasised rapid industrialisation through heavy capital-goods industries (steel, machine tools, chemicals) to build the productive base of the economy, rather than relying on agriculture or exports alone.
The First Five-Year Plan had prioritised agriculture and infrastructure. The Second Plan shifted the focus to the public sector and heavy industry as the engine of long-run growth — a strategy sometimes called the 'socialist pattern of society.'
The neo-classical minimal-state model and market-led export model represent Western liberal approaches never adopted by Nehruvian planning, and the agrarian cooperative model describes the First Plan's orientation, not the Second.
Hence, the economic model that formed the basis of the Second Five-Year Plan was the Mahalanobis heavy-industry model.
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Important Questions from National Income Accounting
Division of labour often involves
1. specialized economic activity.
2. highly distinct productive roles.
3. involving everyone in many of the same activities.
4. individuals engage in only a single activity and are dependent on others to meet their various needs.
Select the correct answer using the code given below:
Which of the following is NOT one of the methods of national income estimation?
Cash Reserve Ratio (CRR) is calculated as a percentage of each bank's _____.
What do you call a proportionate saving in costs gained by an increased level of production?
Which of the following statements is/are correct?
I. Only marketed goods and considered while estimating Gross Domestic Product (GDP).
II. The work done by a woman at her home is outside the purview of Gross Domestic Product.
III. In estimating GDP, only final goods and services are considered.
