Which one of the following statements is not correct about the Second Five Year Plan?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → The savings and investment were not growing during this period.
Option (1) The government did impose substantial tariffs on imports in order to protect domestic industries True.
Option (2) The protected environment enabled both public and private sector to grow. True.
Option (3) The savings and investment were not growing during this period. False. It was the other way round: savings and investment were growing in this period, and that is why a bulk of the heavy industries could be developed in the public sector.
Option (4) The government decided to develop industries like electricity, railways, steel in the public sector True.
NCERT (2025-26): “Rapid Industrialisation … 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.…” |