Which of the following statements is correct about the second five-year plan of India?
I. The draft of this Plan was prepared by P. C. Mahalanobis only.
II. This plan emphasised industrialisation of the economy, particularly heavy industries.
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Correct option is C

The correct answer is (c ) Only II

Explanation:

The Second Five-Year Plan of India (1956–1961) is considered one of the most important milestones in India's economic planning.

• Statement I: The draft of the Second Five-Year Plan was not prepared by P. C. Mahalanobis alone. While P.C. Mahalanobis played a significant role, the plan was also formulated by the Planning Commission's Panel of Economists, the Economic Divisions of the Ministry of Finance, and the National Development Council. 
• Statement II: The Second Five-Year Plan did indeed emphasize on industrialization of the economy, particularly heavy industries. This plan focused on establishing industries like steel, coal, electricity, and machinery, which were necessary for the future growth of India's industrial base. The plan focused on the public sector and was central to India's industrial growth in the 1950s and 1960s.

Information Booster:

Five-Year Plans in India:

Concept: The Government of India prepares a document outlining its income and expenditure for five years.

Budget Breakdown:

• Non-Plan Budget: Spent on routine, yearly expenditures.
• Plan Budget: Allocated for five-year projects as per priorities outlined in the Five-Year Plan.
• Planning Model: India followed the concept of planning through Five-Year Plans from 1951 to 2017.

Planning Commission:

• The Planning Commission was responsible for formulating, implementing, and regulating the Five-Year Plans.
• It was replaced by NITI Aayog in 2015.

NITI Aayog:

NITI Aayog introduced new strategic documents:

• 3-Year Action Agenda
• 7-Year Medium-Term Strategy Paper
• 15-Year Vision Document.