Q.Give four arguments for having Import Substituting Industrialization as a policy of protection in the developing country like India.

Growth, modernisation, self-reliance and equity together formed the common goals of every Indian Five-Year Plan.

Every Five-Year Plan of India, despite differing in specific sectoral priorities, shared four common, overarching goals: Growth (increasing the economy's capacity to produce goods and services, raising GDP and per capita income); Modernization (adopting new technology and changing social/economic outlook, e.g. gender equality, diversification of production); Self-reliance (reducing dependence on imports, particularly for food and essential goods); an …

A key similarity between India and China's development strategies is their shared adoption of centralized Five-Year Plan-based economic planning, begun at roughly the same time.

India and China both embarked on their modern economic development journeys around the same period -- India launched its First Five-Year Plan in 1951, while China launched its own First Five-Year Plan in 1953. Both countries adopted a strategy of centralized economic planning, in which the state played the dominant role in setting development priorities, allocating resources and guiding industrialisation, starting from broadly sim …

Launched by Mao Zedong in 1958, the Great Leap Forward (GLF) sought simultaneous, rapid industrial and agricultural growth by mobilising China's vast labour force into giant collective communes and promoting small-scale, labour-intensive backyard industry (especially steel production), bypassing orthodox, capital-intensive paths to industrialisation.

The GLF had two central aims: first, to achieve rapid industrial growth, particularly in steel and other heavy industries, by encouraging even rural households to set up small backyard furnaces and workshops; second, to collectivise agriculture, merging farmland and labour into huge people's communes where production and resources were pooled and managed collectively, under the belief that collective effort and ideological mobilisation of labour could substitute for capital in driving growth. The policy was intended to allow China to leap over conventional stages of development and quickly rival industrialised nations. However, it led to severe …

P.C. Mahalanobis is regarded as the chief architect of Indian economic planning because the growth model he devised -- stressing industrialisation led by the public sector in heavy and capital goods industries -- became the basis of the Second Five Year Plan (1956-61) and shaped India's long-term development strategy for decades.

Mahalanobis, a statistician, formulated what came to be known as the Mahalanobis model, which argued that for a developing economy like India to achieve rapid, self-sustained economic growth in the long run, it was essential to build a strong domestic base of heavy and basic industries (iron and steel, machine-building, capital goods) under public sector leadership, even if this meant restricting consumer goods production in the short run. This strategy was adopted as the core of the Second Five Year Plan and influenced subsequent plans as well. In addition to this theoretical contribution, Mahalanobis founded the Indian Statistical Institute (ISI) and strengthened the statistical and data-collection s …

Self-reliance, as a planning objective of India's Five Year Plans, meant reducing (not eliminating) dependence on imports — especially for food, capital goods and technology — while avoiding excessive foreign borrowing that could compromise India's economic and political independence.

Self-reliance was one of the key goals (alongside growth, modernization, and equity) pursued through India's Five Year Plans, particularly from the Second and Third Plans onward. It was conceived as:

(A) A long-term equilibrium in the balance of payments — a genuine aspect of self-reliance, since reducing import dependence over time was meant to help the balance of payments stabilise without relying on foreign aid/loans.

(C) Self-sufficiency in the capital goods sector — a real objective, since India wanted to build its own capacity to produce machinery and capital equipment rather than permanently importing it.

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Correct option: (D) Eleventh Five-Year Plan (2007–2012).

The Eleventh Five-Year Plan (2007–2012) explicitly adopted "faster and more inclusive growth" as its central planning objective — this was the title of its own Approach Paper, released by the Planning Commission in 2006, and the Plan document itself used this phrase to describe its broad-based, inclusive growth strategy (targeting 9% GDP growth together with improvements in health, education and poverty reduction so growth reached disadvantaged groups too). The Eighth Plan (1992–97) focused on human resource development; the Ninth Plan (1997–2002) on growth w …