Which of the following statements about the second five-year plan is INCORRECT?

Correct option is C

The correct answer is (C) The plan was based on the Keynesian Model.

Explanation:

• The Second Five-Year Plan (1956–1961) was based on the Mahalanobis Model, not the Keynesian Model.
• It prioritized heavy and basic industries like steel, railways, and power.
• Reflected a socialist pattern of society, emphasizing state-led industrialization.

Information Booster:

• Key Features:
  • Strengthened the public sector.
  • Aimed at self-reliance in industrial production.
  • Focused on import substitution.

Additional Information:

• Keynesian Model: Emphasizes demand-side economics, contrasting with the investment-driven Mahalanobis Model.
• First Five-Year Plan: Focused on agriculture and irrigation.
• Third Five-Year Plan: Shifted focus towards self-sufficiency in food grains.