Second Five-Year Plan
The second five-year plan was designed and developed keeping in mind the success of the first five-year plan. The growth of the first-year plan leads to a boost in the confidence of the government nationwide. Since the growth target was met up, the government decided to shift its focus to another domain apart from agriculture.
The major focus behind the second five-year plan was the set up of the industries, particularly, heavy industries in nature. The goal was to achieve a total of about nearly 25% increase in national income which could be achieved by laying hands on the process of rapid industrialization. The second five-year plan is based on the Mahalanobis model, which was founded by PC Mahalanobis, who is also the founder of the Indian Statistical Institute (ISI). The Indianization was carried out by the USSR model.
The second five-year plan provided statistical foundations for state-directed investments. This was simulated using the input-output model. Also, the underpinnings of the licensing raj were developed. The license raj rose and the public sector also reached heights. Through the concept of this plan, the Industrial Policy Resolution of 1956 was established.
Conclusively, the second five-year plan focused on the fact that long-term growth can be achieved using a greater emphasis on heavy industries.