How did the government protect domestic industries during the Second Five-Year Plan?

Imposing tariffs on imports

The correct answer is Option 1 - Imposing tariffs on imports

The Second FYP stressed on heavy industries. It was drafted by a team of economists and planners under the leadership of P.C. Mahalanobis. If the first plan had preached patience, the second wanted to bring about quick structural transformation by making changes simultaneously in all possible directions. Before this plan was finalised, the Congress party at its session held at Avadi near the then Madras city, passed an important resolution. It declared that 'socialist pattern of society' was its goal. This was reflected in the Second Plan. The government imposed substantial tariffs on imports in order to protect domestic industries. Such protected environment helped both public and private sector industries to grow.