Q.Which one of the following statements is NOT correct about the first two Five Year Plan ? (A) The first Five Year Plan was drafted by K.N. Raj and the second Five Year Plan was drafted by P.C. Mahalnobis. (B) The first Five Year Plan focussed on agriculture and the second Five Year Plan focussed on industries. (C) The first Five Year Plan emphasized on the active role of the public sector and the second Five Year Plan made huge allocations for large scale projects. (D) The aim of first Five Year Plan was to raise the industrial production and in the second Five Year Plan, the government imposed substantial tariffs on imports in order to protect both public and private sector industries.
Statement (D) is incorrect: the first Five Year Plan aimed at raising agricultural production, not industrial production; the second Plan did impose tariffs to protect domestic industries.
India's first two Five Year Plans laid the foundation for the country's development strategy in the 1950s, each reflecting a distinct philosophy and set of priorities shaped by the economic conditions of the time.
The First Five Year Plan (1951–56) was launched in the immediate aftermath of Independence and Partition, when the economy was overwhelmingly agrarian and food security was precarious. The Plan was drafted by K.N. Raj, a young economist working under the guidance of the Planning Commission. Its central objective was to rehabilitate the economy and achieve self-sufficiency in food grains. Agriculture received the lion's share of investment, with major emphasis on irrigation projects, land reforms, and the Community Development Programme. The Bhakra-Nangal Dam and the Hirakud Dam were flagship projects of this period. The Plan was modest in ambition, pragmatic in approach, and largely successful—national income grew by about 18 per cent over the Plan period, exceeding the target.
The Second Five Year Plan (1956–61) marked a dramatic shift in strategy. Drafted by the statistician P.C. Mahalanobis, it was inspired by a vision of rapid industrialization through heavy industry and capital goods production. Mahalanobis believed that building a strong industrial base—steel plants, machine tools, heavy engineering—was essential for long-term self-reliance and growth. The Plan made massive allocations for public sector projects: the steel plants at Bhilai, Durgapur, and Rourkela became symbols of Nehruvian socialism. The public sector was assigned a commanding role in the economy, and the government imposed substantial tariffs on imports to shield nascent industries—both public and private—from foreign competition. This import-substitution strategy aimed to conserve foreign exchange and nurture domestic manufacturing.
Now let's examine each statement in the question:
- (A) is correct: K.N. Raj did draft the First Plan, and P.C. Mahalanobis the Second.
- (B) is correct: the First Plan focused on agriculture, the Second on industries.
- (C) is correct: both Plans emphasized the public sector—the First in infrastructure and irrigation, the Second in heavy industry with huge allocations for large-scale projects.
- (D) is not correct: the aim of the First Plan was to raise agricultural production and achieve food self-sufficiency, not industrial production. The second part of (D)—that the Second Plan imposed tariffs to protect industries—is accurate, but the first part misstates the First Plan's objective.
The First Five Year Plan was agriculture-centric, not industry-centric. Its success in food production set the stage for the industrial ambitions of the Second Plan.
In short, statement (D) is incorrect because the First Five Year Plan aimed at raising agricultural production, not industrial production; the Second Plan did impose protective tariffs on imports.
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