Q1. Discuss the main elements of Nehru-Mahalanobis strategy of development. Give its principal achievements and shortcomings.
- Nehru-Mahalanobis strategy emphasized heavy industrialization and capital goods production.
- Import Substitution Industrialization (ISI) was crucial for self-reliance by restricting imports.
- Public sector played a dominant role, establishing key industries and infrastructure.
- Centralized planning through Five-Year Plans directed resource allocation and economic activity.
Answer: The Nehru-Mahalanobis strategy of development, a cornerstone of India's early economic planning, primarily guided the Second Five-Year Plan (1956-1961) and subsequent plans. This strategy, heavily influenced by Soviet planning models and formulated by Professor P.C. Mahalanobis, aimed at achieving rapid industrialization and self-reliance for the newly independent nation. Its main elements were profoundly structural and interventionist. A key pillar was the emphasis on heavy industrialization, ...