Implementation of the Nehru-Mahalanobis Strategy of Development

The Nehru-Mahalanobis Strategy of Development, also known as the Mahalanobis Model, was a development strategy adopted by India in the early years after independence. It was named after Indian Prime Minister Jawaharlal Nehru and statistician Prasanta Chandra Mahalanobis, who played a crucial role in formulating and implementing the strategy.

The strategy aimed to promote rapid industrialization and economic growth in India through a combination of state-led planning and the use of scientific and technological expertise. It emphasized the need for heavy industry and capital goods production as the foundation for long-term economic development. The strategy also focused on reducing dependence on foreign imports and achieving self-sufficiency in key industries.

Implementation during the Second Five-Year Plan

The Nehru-Mahalanobis Strategy of Development was first implemented during the Second Five-Year Plan, which covered the period from 1956 to 1961. The plan was formulated with the objective of achieving a higher rate of economic growth and reducing poverty in India.

Key features and focus of the Second Five-Year Plan:

1. Industrialization: The plan aimed to accelerate industrial growth, particularly in sectors such as steel, heavy machinery, chemicals, and power generation. The establishment of large-scale public sector enterprises, such as the Steel Authority of India (SAIL) and the Heavy Engineering Corporation (HEC), was a significant step towards achieving this goal.

2. Import substitution: The plan emphasized the need to reduce dependence on imports by promoting domestic production of goods that were previously imported. This was seen as a means to achieve self-reliance and strengthen India's industrial base.

3. Public sector investment: The plan emphasized the role of the public sector in driving industrial growth and infrastructure development. The government invested heavily in the establishment of public sector enterprises, which played a crucial role in expanding the industrial capacity of the country.

4. Agriculture and rural development: While industrialization was a key focus, the plan also recognized the importance of agriculture and rural development. Efforts were made to improve agricultural productivity, expand irrigation facilities, and provide support to rural industries.

Impact and legacy of the Nehru-Mahalanobis Strategy

The implementation of the Nehru-Mahalanobis Strategy during the Second Five-Year Plan laid the foundation for India's industrial development and set the stage for future economic growth. It led to the establishment of key industries and infrastructure that played a significant role in the country's subsequent economic expansion.

However, the strategy also faced criticisms for its heavy reliance on centralized planning and the neglect of certain sectors, such as agriculture. Over time, India's development approach shifted towards a more market-oriented model with economic liberalization in the 1990s. Nonetheless, the Nehru-Mahalanobis Strategy remains an important chapter in India's economic history and its efforts to achieve self-sufficiency and industrialization.