Question

State whether true or false: The Second Five Year Plan focused on the development of the heavy industry.

Answer 1

Answer: The given statement is true.

• The second five year plan was formulated in 1956.
• The second five year plan focused on development of dams and heavy industries like steel.
• To guide economic policy for the next few decades, focus was on developing heavy industry and providing state regulation.
• The Planning Commission was assigned the task of designing and executing suitable policies for the development of the economy.
• The Planning Commission was established in 1950 by the Government of India.
• One of the major objectives was building a modern industrial and technical base for the nation.
• To generate more jobs and to increase production, both the private sector and the Government would play complementary and important roles, hence there was a broad agreement for a mixed economy.
• The Planning Commission had to define how to achieve a balance between different states and regions, which industries must be initiated by the market and which industries should be initiated by the states.