Assertion: The Second Five-Year Plan stressed upon industries and was drafted by a team of economists & planners under the leadership of P.C. Mahalanobis.

Reason: This model suggested that there should be an emphasis on the basic and cottage industries for developing India.

The Assertion is true, but the Reason is false

The correct answer is Option 3 - The Assertion is true, but the Reason is false

Assertion: The Second Five-Year Plan stressed upon industries and was drafted by a team of economists & planners under the leadership of P.C. Mahalanobis. (TRUE)

Reason: This model suggested that there should be an emphasis on the basic and cottage industries for developing India. (FALSE)

CORRECTION in reason:

Reason: This Model suggested that there should be an emphasis on HEAVY INDUSTRIES, not the basic and cottage industries for developing India.

Features of the Second Five-Year Plan (1956-1961):

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. As savings and investment were growing in this period, a bulk of these industries like electricity, railways, steel, machineries and communication could be developed in the public sector. Indeed, such a push for industrialisation marked a turning point in India's development. It, however, has its problems as well. India was technologically backward, so it had to spend precious foreign exchange to buy technology from the global market. That apart, as industry attracted more investment than agriculture, the possibility of food shortage loomed large. The Indian planners found balancing industry and agriculture really difficult.