Question

Which Five-Year Plan in India was based on the Harrod-Domar Model?

• A. First Five-Year Plan
• B. Second Five-Year Plan
• C. Third Five-Year Plan
• D. Fourth Five-Year Plan

Hint:

1st Plan = Agriculture (Harrod-Domar).
2nd Plan = Industry (Mahalanobis).
Think: "First, we eat (Harrod), then we build (Mahalanobis)."

Answer 1

The Correct Option is A

Concept: The Five-Year Plans (FYPs) were centralized and integrated national economic programs in India.

• Harrod-Domar Model: Suggests that economic growth rate depends on the level of savings and the capital-output ratio.

Step 1: Identifying the First Plan.
The

First Five-Year Plan (1951-1956) was based on this model. It focused primarily on the development of the primary sector, particularly agriculture and irrigation (e.g., Bhakra Nangal Dam).

Step 2: Distinguishing other models.
The Second Five-Year Plan was based on the

Mahalanobis Model. While the 1st plan focused on agriculture, the 2nd plan shifted the focus to heavy industrialization.