Identify which of the following statement/statements are incorrect in the context of the IInd Five year plan.

(I) The government imposed substantial tariffs on exports in order to protect domestic industries.

(II) The second FYP stressed on Heavy Industries.

(III) The second FYP wanted to bring about quick structural transformation.

(IV) India was technologically advanced, so it had to spend precious foreign exchange to buy technology from the global market.

(I) and (IV)

The correct answer is option 1- (I) and (IV)

(I) The government imposed substantial tariffs on exports in order to protect domestic industries.

(IV) India was technologically advanced, so it had to spend precious foreign exchange to buy technology from the global market.

The emphasis of the Second Five Year Plan was on the development of heavy industries. It was formulated by a team of economists and planners led by P. C. Mahalanobis. Unlike the first plan, which advocated patience, the second plan aimed for rapid structural transformation by implementing changes in various directions simultaneously. Prior to finalizing this plan, an important resolution was passed by the Congress party during its session in Avadi, near the then city of Madras, declaring the goal of a "socialist pattern of society." This objective was reflected in the Second Plan's policies. To safeguard domestic industries, the government imposed significant tariffs on imports, creating a protected environment that fostered the growth of both public and private sector industries. With increasing savings and investment during this period, numerous industries such as electricity, railways, steel, machinery, and communication flourished in the public sector. This push for industrialization marked a significant turning point in India's development.
The Second Five-Year Plan encountered challenges as well. India's technological backwardness necessitated the expenditure of valuable foreign exchange to acquire technology from the global market. Additionally, as industrial investments overshadowed agricultural investments, concerns about potential food shortages arose. Balancing the development of industry and agriculture proved to be a formidable task for Indian planners. The Third Plan did not deviate significantly from the Second Plan. Critics highlighted an apparent "urban bias" in the plan's strategies during this period. Some believed that industry received undue priority over agriculture, while others advocated for a focus on agriculture-related industries rather than heavy industries.