What was the Main Objective of the Mahalanobis Plan?

The Primary Objective of the Mahalanobis Plan was to fasten the process of industrialization and invest in basic and heavy industries . It also aimed to increase the economic growth of the country and meet all types of demands, and increase production and investments by increasing the consumer goods supply.

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Which Five Year Plan is known as the Mahalanobis Plan?

Q: Which Five Year Plan is known as the Mahalanobis Plan?

The Second Five Year Plan was called the Mahalanobis Plan, as it was proposed by Professor Prasanta Chandra Mahalanobis , who was a statistician. The second five-year plan was in effect from 1956 to 1961. These plans explored the allocation of investment between the various economic sectors.

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The Mahalanobis Plan is Known as India’s Second Five Year Plan, proposed by Professor Prasanta Chandra Mahalanobis. From 1956 to 1961, the second five-year plan was in force. The primary objective of the Mahalanobis Plan was to hasten industrialization in order to support stronger economic development and growth. In order to achieve this, Prof. Mahalanobis focused on the expansion of heavy, fundamental industries.

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1. Mahalanobis Five-Year Plan

Mahalanobis Five-Year Plan

The Nehru-Mahalanobis model was heavily incorporated into the second five-year plan, which is why it became known as the Mahalanobis Plan. In order to promote economic growth, the plan prioritized investment goods and the quick development of heavy industries. The plan also looks at the potential for investment across different economic sectors as it helps in the economic growth of the nation.

The goal was to meet all types of demands and increase the consumer goods supply by increasing production and investments in the small and household industries.
48 billion rupees were allotted in total for the Second Five-Year Plan in India.
The following sectors received this sum: communications and transportation, miscellaneous, social services, power and irrigation, and others.
The second strategy involved an uptick in prices. The nation also experienced a currency crisis.
The per-capita income growth was slowed down by the population’s rapid growth.

The concept of five-year plans came into the picture in the year 1951 when the first five-year plan was launched. The last five-year plan was launched under PM Manmohan Singh from 2012 to 2017.

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