The principal component(s) of Nehru-Mahalanobis strategy of economic d

The principal component(s) of Nehru-Mahalanobis strategy of economic development was/were

1. Restructuring economic dependency on metropolitan capitalism into independent economic development.
2. Transition from semi-feudal agriculture to capitalist farming.

Select the correct answer using the code given below :

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC NDA-2 – 2019

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The Nehru-Mahalanobis strategy, primarily associated with the Second Five Year Plan (1956-61), focused heavily on rapid industrialization with an emphasis on basic and heavy industries within a mixed economy framework, dominated by the public sector. Statement 1, “Restructuring economic dependency on metropolitan capitalism into independent economic development,” accurately reflects a core objective of this strategy: to build a self-reliant industrial base to reduce dependence on developed Western economies for manufactured goods and technology through import substitution. Statement 2, “Transition from semi-feudal agriculture to capitalist farming,” describes a process of agricultural transformation, which was a separate, albeit related, goal often pursued through land reforms during this period. However, the *principal component* of the Nehru-Mahalanobis *strategy of economic development* specifically refers to the industrial planning model focused on heavy industries for self-reliance, making statement 1 the correct principal component related to the strategy itself.

P.C. Mahalanobis was a statistician and a close advisor to Jawaharlal Nehru. His model provided the theoretical basis for the Second Five Year Plan. Key features included: emphasis on heavy industries, public sector dominance, rapid growth, import substitution, and a closed economy model to achieve self-sufficiency. While agricultural development was also important, the defining characteristic of this strategy was the focus on industrial structure.

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