Business Studies

Mahalanobis Model stressed upon the establishment of __________.


ANSWER

Capital and basic goods industries


SOLUTION
Capital and Basic Good Industries.

At the time of the formulation of the Second Five Year Plan, Prof.P.C. Mahalanobis who was friend and adviser to Late Prime Minister Jawaharlal Nehru and who was one time member of Planning Commission,  prepared a growth model with which he showed that to achieve a rapid long- term rate of growth it would be essential to devote a major part of the investment outlay to build­ing of basic heavy industries.

Mahalanobis strategy of development emphasising basic heavy industries which was adopted first of all in the Second Plan also continued to hold the stage in Indian planning right up to the Fifth Plan which was terminated by the Janata Government in March 1978, a year before its full term of five years.
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