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Exercises · Q6

Q.What was the major thrust of the First Five Year Plan? In which ways did the Second Plan differ from the first one?

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The First Five Year Plan (1951–56) prioritised agriculture and irrigation to tackle food shortages, while the Second Plan (1956–61) shifted focus to heavy industry and capital goods to build a self-reliant industrial base.

When India launched its First Five Year Plan in 1951, the country faced an immediate and pressing challenge: feeding its population. Partition had disrupted agricultural production, food grain imports were draining precious foreign exchange, and the spectre of famine loomed large. The architects of the plan—led by K.N. Raj under the guidance of Prime Minister Nehru and Deputy Prime Minister Patel—understood that without solving the food problem, no other development could take root. The plan therefore placed agriculture at its heart.

The major thrust was to increase agricultural output through investment in irrigation and land development. Large multipurpose river valley projects like Bhakra Nangal and Hirakud were initiated, not merely as dams but as integrated schemes combining irrigation, flood control, and power generation. The plan also emphasised land reforms to redistribute holdings and empower cultivators, though implementation varied widely across states. Community development programmes were launched to modernise rural life and farming practices at the grassroots. The underlying philosophy was Gandhian in spirit—decentralised, village-focused, and aimed at immediate relief rather than distant transformation.

The results were encouraging. Agricultural production rose, food grain output increased, and the plan met most of its modest targets. But it was essentially a conservative, stabilising effort. It did not fundamentally alter the structure of the economy or lay the groundwork for long-term industrial strength.

The Second Five Year Plan, unveiled in 1956, represented a dramatic departure. Drafted by the statistician P.C. Mahalanobis, it was inspired by Soviet-style planning and rested on a bold premise: India must build its own heavy industries—steel, machinery, chemicals—to become self-reliant and break free from colonial patterns of dependence. Where the First Plan had been cautious and agrarian, the Second was ambitious and industrial.

Key differences between the two plans:

  • Sectoral priority: The First Plan allocated the largest share of investment to agriculture and irrigation; the Second Plan shifted the lion's share to industry, particularly heavy and basic industries. Steel plants at Bhilai, Durgapur, and Rourkela were established with foreign collaboration.

  • Philosophical model: The First Plan was pragmatic and incremental, influenced by Gandhian ideals of village self-sufficiency. The Second Plan embraced the Mahalanobis model, which argued that capital goods industries must grow faster than consumer goods industries to ensure sustained long-term growth—a strategy borrowed from Soviet industrialisation. …

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