Question -
Answer -
The First Five Year Plan that was commenced in 1951 to be drafted by young economist, K.N. Raj, with the emphasis on poverty alleviation. Its main thrusts were as follows:
- It mainly addressed the agrarian sector including investment in dams and irrigation.
- Huge allocations were made for large scale projects like the Bhakhra Nangal Dam.
- It focused on land reforms for development in rural areas.
- One of the basic aims of the planners was to raise the level of national income.
The Second Five Year Plan, drafted by a team of economists and planners under the leadership of P. C. Mahalanobis was different from the Frist Five Year Plan in the following ways:
- The Second FYP stressed on heavy industrialisation.
- Second Five Year Plan wanted to bring about quick structural transformation by making changes simultaneously in all possible directions.
- The government imposed substantial tariffs on imports in order to protect domestic industries. Such protected environment helped both public and private sector industries to grow.
- As savings and investment were growing in this period, a bulk of these industries like electricity, railways, steel, machinery and communication could be developed in the public sector.
- Indeed, such a push for industrialisation marked a turning point in India’s development.