The Second Five-Year Plan of India (1956-1961)

The Second Five-Year Plan of India (1956-1961)

The Second Five-Year Plan, launched in 1956, built upon the successes of the first plan and aimed for even more ambitious goals.  Growth : The plan achieved a 4.21% growth rate, slightly falling short of the target of 4.5%. Despite this, it was still a significant improvement compared to pre-independence levels and demonstrated continued economic progress. Nehruvian Vision and the Mahalanobis Model: Nehru's priorities : The plan reflected Prime Minister Nehru's vision for India's industrialization. He prioritized heavy industries, public sector undertakings (PSUs), foreign aid, long-term planning, and a top-down approach. P.C. Mahalanobis Model : This model, formulated by economist P.C. Mahalanobis, emphasized heavy industry development as the engine for economic growth. The plan aimed to increase labor productivity, substitute imports of heavy goods, and shift labor from agriculture to industry. Key Initiatives: Industrial and Transport Plan: This ambitious plan aimed to establish…