Question

The very first five - year plan of India was based on the model of :

• A. Bombay Plan
• B. Mahalanobis model
• C. Harrod – Domar model
• D. None of these

Answer 1

Answer:

C. Harrod – Domar model

• The First Five-Year Plan of India (1951 -1956 ) was based on the Harrod - Domar model.

• Key features of the plan:

• Objectives:

1. Economic growth

2. Self - reliance

3. Social justice

4. Reduction of Poverty and inequality

• Strategy :

1. Heavy investment in infrastructure ( irrigation , power , transport )

2. Rapid industrialization

3. Agricultural development

4. Emphasis on public sector

• Harrod - Domar Model:

• Developed by Roy Harrod and Evsey Domar , this model emphasis:

• Savings and investment

• Capital accumulation

• Technological progress

• Economic growth through investment

• Key features of Harrod - Domar model in India's First Plan:

1. Focus on capital - intensive industries

2. Emphasis on infrastructure development

3. Investment in human capital ( education , healthcare )

4. Government intervention in strategic sectors