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Second Five Year Plan (1956-1961)
1. The second five-year plan focused on industry, especially heavy industry. The target of 25% Increase in the national income was set through rapid industrialization however the achieved target was of only 20%.
2. This plan was based upon socialistic pattern.
3. Rate of Investment was planned 11 % now, as compared to 7% in First plan.
4. National Income in this plan rose by 20% but per capita income grew by 8% only.
5. Domestic production of industrial products was encouraged, particularly in the development of the public sector.
6. The plan followed the Mahalanobis model, an economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953.
7. The plan attempted to determine the optimal allocation of investment between productive sectors in order to maximize long-run economic growth . It used the prevalent state of art techniques of operations research and optimization as well as the novel applications of statistical models developed at the Indian Statiatical Institute.
8. Hydroelectric power projects and five steel mills at Bhilai, Durgapur, and Rourkela were established. Coal production was increased. More railway lines were added in the north east.
9. The Atomic Energy Commission was formed in 1957 with Homi J. Bhabha as the first chairman. The Tata Institute of Fundamental Research was established as a research institute. In 1957 a talent search and scholarship program was begun to find talented young students to train for work in nuclear power.


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