Examine the formulation of India's Five Year Plans. Which plan model famously placed heavy emphasis on rapid industrialization through capital goods industries, known as the Mahalanobis Model?

💡 Solution & Explanation

The Second Five Year Plan adopted the Mahalanobis strategy, prioritizing heavy industries and capital goods manufacturing to achieve rapid economic self reliance. The First Five Year Plan prioritized agriculture and irrigation using the Harrod Domar growth framework. Eighth Five Year Plan emphasized human capital development in the wake of the 1991 economic reforms. Prasanta Chandra Mahalanobis was a renowned Indian statistician who founded the Indian Statistical Institute.