Which Five-Year Plan is also known as the 'Mahalanobis Plan'?

The Correct answer is Second Plan.

Key Points

• The Second Five-Year Plan (1956–1961) is popularly known as the Mahalanobis Plan.
• It was formulated under the guidance of the Indian statistician Prof. P.C. Mahalanobis, who was a key figure in the development of planning in India.
• This plan focused on the industrialization of India and emphasized the creation of a strong base for heavy industries, such as steel plants, machine tools, and heavy engineering industries.
• The plan was based on the Mahalanobis model, which highlighted the role of the capital goods sector in economic growth and development.
• The strategy aimed to achieve a self-reliant economy by reducing dependence on imports through the growth of domestic industries.
• The plan also laid emphasis on socialist principles, such as reducing income inequalities and ensuring equitable distribution of wealth.
• Some of the major projects initiated under this plan include the establishment of steel plants in Bhilai, Rourkela, and Durgapur.
• The plan was a significant milestone in shaping India’s economic policies and remains a landmark in the history of Indian economic planning.

Additional Information

• First Plan
  • The First Five-Year Plan (1951–1956) focused on agriculture and irrigation to address food shortages and to promote rural development.
  • It was based on the Harrod-Domar model and aimed at achieving self-sufficiency in food production.
  • Key projects included the Bhakra-Nangal Dam and other irrigation initiatives.
• Seventh Plan
  • The Seventh Five-Year Plan (1985–1990) focused on employment generation, productivity, and modernization.
  • It emphasized social justice and aimed at reducing poverty through programs like Integrated Rural Development Program (IRDP).
  • It also focused on improving basic infrastructure, such as education and healthcare.
• Fourth Plan
  • The Fourth Five-Year Plan (1969–1974) aimed at achieving growth with stability and focused on reducing income inequality.
  • It emphasized self-reliance and introduced the Minimum Needs Program to improve the living standards of underprivileged sections.
  • The plan faced challenges such as economic instability due to droughts and wars.