Macroeconomic Fundamentals› Planning, 1991 Reforms & Inclusive Growth
Heavy Sector Strategy is associated with the name of :
Answer b.
The answer is (b) Mahalanobis. His two-sector model (1953), developed into the four-sector model on which the Second Plan was based, put the weight on heavy and capital-goods industry. P. C. Mahalanobis, the statistician who founded the Indian Statistical Institute, built a growth model in 1953 that divided the economy into a capital-goods sector and a consumer-goods sector. He argued that raising the share of investment going to capital goods (steel, machinery, power) would build the capacity to produce more of everything later. He developed this into a four-sector model, which was the basis of the Second Five Year Plan (1956-61). That plan's stress on heavy industry is why the approach is called the Heavy Sector Strategy.
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