Which of the following statement (s) is/are correct?

Statement 1: The initial eight five-year plans placed significant emphasis on self-reliance, which entailed avoiding imports of goods that could be produced within India.

Statement 2: Given the recent liberation from foreign domination, it is understandable that prioritizing self-reliance was crucial after independence.

Only Statement 2 is correct.

A nation can stimulate economic growth and modernization through the utilization of its own resources or by importing resources from other countries. The initial seven five-year plans placed significant emphasis on self-reliance, which entailed avoiding imports of goods that could be produced within India. This policy was deemed necessary to decrease the country's reliance on foreign nations, particularly concerning food production. Given the recent liberation from foreign domination, it is understandable that prioritizing self-reliance was crucial. Moreover, there were concerns that depending on imported food supplies, foreign technology, and foreign capital might expose India's sovereignty to potential foreign interference in policymaking.