In line with the Soviet Union's approach, India's Planning Commission adopted a system of five-year plans (FYPs). The concept is straightforward: the Indian government formulates a comprehensive document outlining its financial projections and allocations for the next five years. This entails dividing the budgets of the central and state governments into two categories: the 'non-plan' budget, which covers annual routine expenditures, and the 'plan' budget, which is allocated over the course of five years based on predetermined priorities set by the plan. By implementing a five-year plan, the government gains the advantage of being able to focus on the broader perspective and make sustained interventions in the economy for long-term development.

Assertion: The second five-year plan caused agriculture and rural India to suffer.
Reason: The second five-year plan laid emphasis on industries.

Both the Assertion and the Reason are correct and the Reason is the correct explanation of the Assertion.

Many thought that the Second Plan lacked an agrarian strategy for development, and the emphasis on industry caused agriculture and rural India to suffer. Chaudhary Charan Singh, a Congress leader said that the planning was leading to creation of prosperity in urban and industrial section at the expense of the farmers and rural population.

Facts about The Second Five-Year  plan:

-It stressed on heavy industries. It was drafted by a team of economists and planners under the leadership of P. C. Mahalanobis. The second FYP wanted to bring about quick structural transformation by making changes simultaneously in all possible directions.