Consider the following statements regarding the Five-Year Plans of India. Which of these statements is/are correct?
1. The First Five-Year Plan was based on the Harrod-Domar model and it prioritised agricultural development to address food security.
2. The Second Five-Year Plan, known as the Mahalanobis Plan, focussed on rapid industrialisation.​

Correct option is B

The correct answer is (b) Both Statement 1 and Statement 2

Explanation:

• Statement 1: The First Five-Year Plan (1951-1956) was indeed based on the Harrod-Domar model, which emphasized the need for capital accumulation and investment to promote economic growth. This plan prioritized agricultural development to address the issue of food security, particularly in the aftermath of the partition and subsequent food shortages. The main focus was on increasing food production, especially through irrigation and the improvement of agricultural practices.
• Statement 2: The Second Five-Year Plan (1956-1961), also known as the Mahalanobis Plan, placed heavy emphasis on industrialisation, particularly the development of heavy industries such as steel, machinery, and infrastructure. The plan followed the ideas of Professor P.C. Mahalanobis, who advocated for a focus on capital-intensive industries to build a self-sustaining industrial base.

Information Booster:

• The First Five-Year Plan's focus on agriculture was aimed at addressing the immediate food security concerns of the newly independent country.
• The Second Five-Year Plan marked a shift towards industrialization, with a long-term view of reducing India’s dependence on foreign imports.
• The Mahalanobis model emphasized the importance of investment in heavy industries and infrastructure to kick-start economic growth and reduce dependency on foreign nations.

Additional Knowledge:

12 Five-Year Plans of India

• India has implemented 12 Five-Year Plans from 1951 to 2017, with the 12th Plan being the last one, covering 2012-2017.
• The plans were developed by the Planning Commission (later replaced by the NITI Aayog in 2015) and aimed at improving economic growth, addressing regional disparities, and promoting social welfare.

Key Points on the Plans:

1. First Five-Year Plan (1951-1956):
• Focus on agriculture, addressing food security, and irrigation.
• Based on the Harrod-Domar model, emphasizing investment in agriculture.
2. Second Five-Year Plan (1956-1961):
• Known as the Mahalanobis Plan, focused on industrialisation (heavy industries).
• Emphasized capital goods industries and self-reliance.
3. Third Five-Year Plan (1961-1966):
• Focused on self-sufficiency in food grains.
• Launched the Green Revolution for agricultural growth.
4. Fourth Five-Year Plan (1969-1974):
• Focused on poverty alleviation, employment generation, and economic self-reliance.
• Emphasis on infrastructure development and rural economy.
5. Fifth Five-Year Plan (1974-1979):
• Introduced the concept of ‘basic needs’ (food, shelter, and education).
• Emphasis on poverty eradication and education.
6. Sixth Five-Year Plan (1980-1985):
• Focus on economic liberalisation and increased public sector investment.
• Expanded on poverty alleviation and employment generation.
7. Seventh Five-Year Plan (1985-1990):
• Promoted economic reforms, privatisation, and market-driven growth.
• Focused on rural development and basic infrastructure.
8. Eighth Five-Year Plan (1992-1997):
• Marked the shift towards economic liberalisation and globalisation after 1991 reforms.
• Focus on human development, health, and education.
9. Ninth Five-Year Plan (1997-2002):
• Focus on social justice and employment generation.
• Emphasis on poverty reduction and inclusive growth.
10. Tenth Five-Year Plan (2002-2007):
• Focus on inclusive growth and achieving 8% growth rate.
• Launched the National Rural Employment Guarantee Act (NREGA).
11. Eleventh Five-Year Plan (2007-2012):
• Emphasis on inclusive growth, sustainability, and improving human development indicators.
• Target of 9% growth with a focus on education and health.
12. Twelfth Five-Year Plan (2012-2017):
• Focused on achieving 8% growth and reducing poverty.
• Priority to social inclusion, education, and healthcare.
• Make in India initiative was part of this plan to boost manufacturing.
• Ended with a shift to the NITI Aayog, marking the end of traditional five-year planning.