Question

Statement I: The Second Five Year Plan stressed on heavy industries. Statement II: A bulk of industries like electricity, railways, steel could be developed by the private sector.

• A. Both Statement I and Statement II are correct
• B. Both Statement I and Statement II are incorrect
• C. Statement I is correct, but Statement II is incorrect
• D. Statement I is incorrect, but Statement II is correct

Answer 1

The Correct Option is C

Analysis of the Statements:

Statement I: "The Second Five Year Plan stressed on heavy industries."
This is correct. The Second Five Year Plan (1956-1961), also known as the Mahalanobis Plan, emphasized rapid industrialization with focus on heavy industries like steel, machinery, and chemicals.

Statement II: "A bulk of industries like electricity, railways, steel could be developed by the private sector."
This is incorrect. The Second Plan followed the Industrial Policy Resolution 1956 which reserved these key industries for the public sector (Schedule A). Private sector participation was limited to other areas.

Key Features of Second Plan:

• Based on P.C. Mahalanobis's model
• Established public sector undertakings (Bhilai Steel Plant, Durgapur Steel Plant etc.)
• Allocated 24% of total outlay to industry (vs 5.6% in First Plan)
• Followed import-substitution industrialization strategy

Correct Answer: (3) Statement I is correct, but Statement II is incorrect