The Mahalanobis model was the basis for which Five-Year Plan?

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Accepted Answer

1. Background: The Mahalanobis model was developed by P.C. Mahalanobis to guide India's industrialisation strategy, emphasizing heavy (capital) goods over consumer goods.

2. Plan association: This model formed the theoretical basis of India's Second Five-Year Plan (1956–1961), where the focus was on building capital goods industries to accelerate long-term growth.

3. Model idea (brief): The planning approach can be represented in a two-sector growth framework (consumer vs. capital goods) with dynamics like $x_{t+1}=Ax_t$, highlighting investment-driven expansion of capital capacity.

Therefore, the correct option is the Second Five-Year Plan.

FINAL_ANSWER: b

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