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

The Second Five Year Plan, implemented in India from 1956 to 1961, primarily focused on developing heavy industries. This strategic move aimed to lay a strong foundation for industrialization by emphasizing sectors that require substantial capital and contribute significantly to economic growth, such as steel, machine-building, and electricity. 

In contrast, the infrastructure mentioned, such as electricity, railways, and steel, required massive investments and long gestation periods, which were beyond the capacity of the private sector at that time. Hence, such industries were predominantly promoted and developed by the public sector, not the private sector. The state took the lead to ensure rapid industrialization.

Therefore, the analysis of the statements leads to the conclusion that:

• Statement I is correct, reflecting the historical emphasis on heavy industries during the Second Five Year Plan.
• Statement II is incorrect as it inaccurately attributes the promotion of key infrastructure sectors to the private sector, whereas these were primarily developed by the public sector.

Thus, the correct choice is: Statement I is correct, but Statement II is incorrect.

Answer 2

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