Statement I: The Second Five Year Plan stressed on heavy industries.
Statement II: A bulk of industries like electricity, railways, steel could be developed by the private sector.

Statement I is correct, but Statement II is incorrect

The correct answer is Option (3) → Statement I is correct, but Statement II is incorrect

Statement I: The Second Five Year Plan stressed on heavy industries is correct.
Statement II: A bulk of industries like electricity, railways, steel could be developed by the private sector is incorrect. It should be PUBLIC SECTOR not private sector.

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.