The correct answer is Second Five Year Plan. Explanation & Key Takeaways: • Second Five-year plan (1956 to 1961) • The second plan was conceived in an atmosphere of economic stability. • It was felt agriculture could be accorded lower priority. • Industries got more importance in the 2nd five-year plan. The focus was mainly on heavy industries. • The Indian government boosted the manufacturing of industrial goods in the country. • This was done primarily to develop the public sector. • The Plan Focussed on rapid industrialization- heavy & basic industries. • Advocated huge imports through foreign loans. • Therefore, the Indian Government adopted a mixed economy during the second five-year plan. Hence, Option 2 is correct. • The Industrial Policy 1956 was based on the establishment of a socialistic pattern of society as the goal of economic policy. • Acute shortage of forex led to pruning of development targets, the price rise was also seen ( about 30%) vis a vis decline in the earlier Plan & the 2nd FYP was only moderately successful. Important Notes: • The 2nd year five-year plan functioned based on the Mahalanobis model. • The Mahalanobis model was propounded by the famous Prasanta Chandra Mahalanobis in the year 1953. • As many as five steel plants including the ones in Durgapur, Rourkela ,Bhilai were set up as per the 2nd five-year plan. • During the term of the 2nd five-year plan, Atomic Energy Commission came into being. • The Commission was established in the year 1957. • During the same period, the Tata Institute of Fundamental Research was born. Related Concepts: • First Five Year Plan: • It was launched from 1951 to 1956, under the leadership of Jawaharlal Nehru. • It was based on the Harrod-Domar model with a few modifications. • Its main focus was on the agricultural development of the country. • This plan was successful and achieved a growth rate of 3.6% (more than its target of 2.1%). • At the end of this plan, five IITs were set up in the country. • Third Five Year Plan: • It was made from 1961 to 1966. • It is also called ‘Gadgil Yojna’, after the Deputy Chairman of Planning Commission D.R. Gadgil. • The target of this plan was to make the economy independent. • The stress was laid on agriculture and the improvement in the production of wheat. • India was engaged in two wars: (1) the Sino-India war of 1962 and (2) the Indo-Pakistani war of 1965. These wars exposed the weakness in our economy and shifted the focus to the defense industry, the Indian Army, and the stabilization of the price (India witnessed inflation). • The plan was a flop due to wars and drought. The target growth was 5.6% while the achieved growth was 2.4%. • Fourth Five Year Plan: • Its duration was from 1969 to 1974, under the leadership of Indira Gandhi. • The two main objectives of this plan i.e. growth with stability and progressive achievement of self-reliance. • Fourteen major Indian banks were nationalized. • Indo-Pakistani War of 1971 and the Bangladesh Liberation War took place. • Implementation of Family Planning Programmes was amongst major targets of the Plan • It failed and could achieve a growth rate of 3.3% only against the target of 5.7%.