Understanding Second Five-Year Plan Objectives

The Second Five-Year Plan (1956-1961) in India was a crucial period focusing on building the industrial base of the country. It was largely based on the Mahalanobis model, which emphasized rapid industrialization with a particular focus on the development of basic and heavy industries.

Key Objectives of the Second Five-Year Plan

The primary aims of the Second Five-Year Plan included:

• Rapid industrialization, with emphasis on heavy and basic industries.
• Increase in national income to raise the standard of living of the people.
• Expansion of employment opportunities.
• Reduction in inequalities of income and wealth.

Let's analyze the given statements based on these objectives.

Analyzing the Statements

We are asked to identify the statement that is NOT correct regarding the objectives of the Second Five-Year Plan.

• Statement 1: Development of the basic and heavy industry sector
  This was the cornerstone of the Second Five-Year Plan. The Mahalanobis model strongly advocated for investing heavily in industries like steel, coal, heavy machinery, etc., to create a self-sufficient industrial base. Therefore, this statement is a correct objective.
• Statement 2: Increase in national income to raise living standards
  A fundamental goal of any Five-Year Plan is economic growth, measured by an increase in national income. The Second Plan aimed for a significant rise in national income, which would, in turn, help improve living standards. This was indeed an objective. Therefore, this statement is a correct objective.
• Statement 3: Expansion of the consumer goods sector
  While the consumer goods sector is part of the overall economy, the primary focus and investment during the Second Five-Year Plan were heavily skewed towards capital goods and heavy industries. The idea was that building a strong base of heavy industries would eventually support the growth of other sectors, including consumer goods, in the long run. However, direct, rapid expansion of the consumer goods sector was not the main stated objective or the priority focus of this plan. Resources were diverted to heavy industries. Therefore, this statement is likely not a correct objective as the main focus.
• Statement 4: Expansion of employment opportunities
  Industrial growth and increased economic activity were expected to create more jobs across various sectors, thereby expanding employment opportunities. This was listed as one of the key objectives to address unemployment issues. Therefore, this statement is a correct objective.

Comparing the statements with the known objectives, the expansion of the consumer goods sector was not the primary focus of the Second Five-Year Plan, unlike the development of heavy industries, increasing national income, and expanding employment.

Conclusion

Based on the analysis of the key objectives and the priority given to different sectors during the Second Five-Year Plan, the statement that is NOT correct regarding its objectives is the one mentioning the expansion of the consumer goods sector as a primary goal.

Revision Table: Indian Five-Year Plans Focus

Additional Information: The Mahalanobis Model

The Second Five-Year Plan was based on a growth model developed by statistician P.C. Mahalanobis. This model advocated for a strategy of economic development that prioritized investment in heavy industries over consumer goods industries. The logic was that significant investment in capital goods industries would create the necessary infrastructure and production capacity to boost overall economic growth and eventually support the consumer goods sector and improve living standards more sustainably in the long run. While successful in building an industrial base, the model also faced criticism for potentially neglecting agriculture and consumer needs in the short term and contributing to inflationary pressures.