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2nd Five Years Plan
2nd Five Years Plan
The 1st five year plan ended in the year 1956. The 2nd
five year plan was effective from 1956 to 1961.
With India's five year plans the country has attained a
more or less stable economic setup down the years.
Dealt with hydroelectric projects, steel mills,
production of coal, addition of railway tracks and other
aspects.
The 2nd five year plan abided by Mahalanobis model.
The second five-year plan focused on
industry, especially heavy industry.
Objectives of the 2nd five year plan (1956 to
1961): Industries got more importance in the
2nd five year plan.
The focus was mainly on heavy industries.
The Indian government boosted
manufacturing of industrial goods in the
country. This was done primarily to develop
the public sector.
An economic development model developed by the
Indian statistician Prasanta Chandra Mahalanobis in
1953.
The plan attempted to determine the optimal
allocation of investment between productive sectors in
order to maximize long-run economic growth .
It used the prevalent state of art techniques of
operations research and optimization as well as the
novel applications of statistical models developed at
the Indian Statistical Institute.
The plan assumed a closed economy in which the main
trading activity would be centered on importing capital
goods.