Q.Why is Prof. P.C. Mahalanobis known as the architect of Indian planning?
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Start your 14-day free trial to unlock the full solution →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 …
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