The second five-year plan laid emphasis on industry, particularly heavy industry. Distinct from the First five year plan that laid impetus primarily on agriculture, the domestic production of industrial products was supported in the 2nd plan, chiefly in the development of public sector.
The Second five-year plan followed the Mahalanobis model. Mahalanobis model is an economic development model upsurged by the Indian statistician, Prasanta Chandra Mahalanobis in the year 1953. The Second five-year plan endeavored to conclude the finest allocation of investment between productive sectors so as to maximize long run economic growth. It used the ubiquitous state of art techniques of operations research & optimization in addition to the novel applications of statistical models build up at the Indian Statistical Institute.
The Second five-year plan assumed a closed economy in which the major trading action would be centered on importing capital goods. Hydroelectric power projects & 5 steel mills at Durgapur, Bhilai & Rourkela were set up.
Atomic Energy Commission was formed in the year 1958 with Homi Bhaba as its chairman. Tata Institute of Fundamental Research was recognized as a research institute. In the year 1957 a talent search & scholarship program was started on to find young talented students to educate for work in nuclear power. Target Growth during the Second five-year plan was 4.5% and growth achieved was 4.0%.
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