A Keynote on Second Five-Year Plan

From April 1956 to March 1961, the second five-year plan was in effect. The strategy was to put India on the way to industrialisation.

P.C. Mahalanobis came up with the second five-year plan. He emphasised the importance of bolstering the economy’s industrial base the most. In light of this, it revised the 1948 Industrial Policy Resolution and passed a new resolution in 1956. The Second Five-Year Plan will be discussed in this article.

Second Five-year Plan

• The success of the First Five-Year Plan bolstered the leaders’ confidence. This was because they fulfilled the first plan’s agriculture growth objective, and the government quickly shifted its focus to other areas.
• The focus of the second five-year plan was industry, particularly heavy industry. It established the objective of a 25% increase in national income through rapid industrialisation.
• In the second five-year plan, the Mahalanobis model was utilised. The USSR model was Indianized by P.C. Mahalanobis. He is the author of the Indian Statistical Institute and a close aide of Nehru.
• This technique is recognised to have supplied the statistical foundations for state-directed investments and built the philosophical underpinnings of the licensing raj through an intricate input-output model.
• According to this concept, India’s economy should concentrate a larger focus on heavy industries, resulting in higher long-term growth.
•  The Industrial Policy Resolution of 1956, which paved the ground for establishing the public sector and the licensing raj, was based on this premise.

Some Of The Second Five-year Plan’s Most Important Points

• Steel mills were developed at Bhilai, Durgapur, and Rourkela under the second five-year plan.
• Increased coal output and new railway lines were part of the strategy.
• The Atomic Energy Commission, which was created in 1957, was led by Homi J. Bhabha for the first time.
• The Tata Institute of Fundamental Research was established as a research institute.
• In 1957, they established a talent search and scholarship program to identify outstanding young students who might be prepared for careers in the nuclear power sector.

Second Five-year Plan Achievements

• What achieved the socialist-based second five-year plan intended for a 25% increase in national GDP through fast industrialisation, but only 20%. Furthermore, per capita income only climbed by 8%.

• Domestic industrial product manufacture was promoted, especially in the expansion of the public sector.

• This strategy fell short of its 4.5% planned growth rate, reaching 4.27% instead.

• The government has taken various measures to boost growth, including demonetisation, the introduction of the Goods and Services Tax, and increased spending on infrastructure. The country is also investing in renewable energy to improve its energy security.

Critical Assessment Of The Second Five-year Plan

1. Overall, the second five-year plan for the Indian economy planning has been successful in creating jobs and increasing GDP.
2. However, there are some areas where the government could do better, like improving infrastructure and social welfare schemes.
3. The government should also focus on increasing agricultural production to increase food security and reduce dependence on imports.
4. The Second Five-Year Plan of the Indian Economy planning has successfully achieved the set goals.
5. The growth rate has been higher than the targeted rate.
6. Infra-structure development has been accelerated, and several new projects have been initiated.
7. The government has taken several measures to curb inflation and improve economic conditions.

What Is The Goal Of The Second Five-year Plan In India?

The plan aims to reduce poverty, create jobs, and improve infrastructure. Additionally, the government is committed to reducing corruption and improving the financial system.

The plan has been successful in phase one, as GDP growth has averaged 7.5% over the past five years. Additionally, there has been a reduction in poverty rates and increased employment and investment. The government is also hopeful that the second five-year plan will result in even more success in phase two, which will continue to improve the country’s infrastructure and make it more competitive.

Conclusion:

Fast industrialisation was the goal of the socialist-inspired second five-year plan, which aimed for a 25% growth in national GDP. In the second five-year plan, the Mahalanobis model is utilised. 

The second five-year plan prioritised industrialisation, notably the growth of basic and heavy industries. It intended to increase public enterprise in industrial and mineral development greatly. However, they did not meet the established objectives due to large imports and poor backward and forward connections.