Question

in second year plan who got emphasis

Answer 1

Contents:

Introduction to the Second Five-Year PlanObjectives of the Second Five-Year PlanGrowth Model of the Second Five-Year PlanPlan Outlay and Priorities of the Second Five-Year PlanProgress of the Second Five-Year PlanAchievements of the Second Five-Year PlanCritical Assessment of the Second Five-Year Plan1. Introduction to the Second Five-Year Plan:

Despite an 18% increase in the aggregate national income during the First Plan, there was very little rise in the standard of living of the population as a whole. Disappointment, bitterness, and lack of enthusiasm were on the increase.

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There was even a spirit of radicalism among the working class and some sections of the middle class. The Government, therefore, found it necessary to propose a more ambitious and apparently a more radical plan.

China’s economic success since 1947 and India’s desire not to loose ground in comparison, was another factor which made a more ambitious plan readily acceptable. The success in Russia and China gave new credit to socialist ideas in India. The result was that the Second Plan, launched on 1 April, 1956, was not exactly a continuation of the First. It was much bigger in size and aimed at ‘development’ rather than rehabilitation.

In marked contrast to the First, the Second plan laid emphasis on industrialisation, especially the development of basic and key industries in the public sector. Above all, it had the broad aim of establishing a ‘socialistic pattern of society’ in the country.

Within this framework, it had the following objectives:

2. Objectives of the Second Five-Year Plan:

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1. “A sizeable increase in national income so as to raise the level of living in the country.”

2. “Rapid industrialisation, with particular emphasis on the development of basic and heavy industries.”

3. “A large expansion of employment opportunities”; and

4. “Reduction of inequalities in income and wealth and a more even distribution of economic power.”

As can be seen, these objectives were inter-related. A significant increase in national income and a marked improvement in living standards could not be secured without a substantial increase in production and investment.

To this end, the building up of economic and social over heads, exploration and develop­ment of minerals and the promotion of basic industries like steel, machine building, chemicals and coal were vital.

For securing a simultaneous advance in all the these directions, the available man power and natural resources had to be used to best advantage. Further, the process and pattern of development had to reflect certain basic social values and purposes, so as to result in reduction of economic and social inequalities.

3. Growth Model of the Second Five-Year Plan:

The Second Five Year Plan envisaged an increase in the total national income from Rs. 10,800 crores in 1955-56 to Rs. 13,480 crores in 1960-61 (calculated at 1952-53 prices). This represented an increase of about 25% over the five-year period. The per capita income was expected to increase from Rs. 281 in 1956 to Rs. 331 in 1960-61.

In order to make these achievements possible, the rate of investment was expected to rise from 7% of the national income in 1955-56 to 11% in 1960-61, assuming that the rate of population growth would remain stationary at 1.3% per annum and the capital output ratio at 2.3: 1.