After the success of India's First Five-Year Plan (1951-1956), that time present government was fully motivated for 2nd five Term Plan Journey.
The Second Five-Year Plan (1956-1961) was developed by one of modern great economist P.C. Mahalanobis. The vision was of implementing industrialization in India. Behind this the primary goal was starting the journey of making India self-dependent.
By this vision and goal, our respected visionary started working in the formation of roadmap of building industries like steel and machinery which would help in reducing liability on foreign imports. This is just a single point.
This full article is developed specially to deliver perfect and great knowledge to them having mindset like you. We have made the article by deep researching considering trusted and important sources like BBC News, Hindustan Times, AAJ Tak and other many trusted sources. Leaving this, now let's start this second five year term (1956-1961) journey.
Note: In this article, we have divided the journey by year by year. In each year section, we have given first the introduction and main points and after this we have discussed key focus area of the following year, achievements got in this year, and at last challenges in this year. After these sections' journeys, we have gone with the full summary.
First Year (1956-1957) of Industrialization Journey
As we know this five year plan was linked to industrialization, so to make it the reality the first step was to build large-scale industries, particularly in steel and machinery. Because it would help reduce imports and create jobs for India's rapidly growing population. Along this, major investments were made to kickstart this industrial development.
Key Focus Areas of Year (1956-1957)
- Heavy Industries: To establish industrialization, major important and backend handling industries should be given first priority. Steel and machinery industries were main parts of India's industrial growth strategy.
- P.C. Mahalanobis's Vision: His economic strategies were aimed at building a strong domestic industrial base.
- Capital Investments: Large amounts of money were allocated to set up major industries like iron and steel production.
Achievements in Year (1956-1957)
- Steel Plant Development: Planning and groundwork for steel plants in Bhelahi, Rourkela, and Durgapur began. Some foreign partners were too involved in this.
- Industrial Infrastructure: Machine-building industries were launched to support the industrial push in other sectors.
Challenges in Year (1956-1957)
Regarding achievements and goals, there were some rocks too in the way. Labor shortage and infrastructure gaps were some examples.
- Skilled Labor Shortage: India lacked the engineers and technicians that time. Skilled employees are the one of important needs of any industry. To build and operate these new industries effectively, realized the visionary of proper training programs importance.
- Infrastructure Gaps: The slow development of transportation, water, and electricity systems was a big rock in the pace of industrial growth.
Second Year (1957-1958) - Journey The Push for Heavy Industry Continues
By setting the proper roadmap for overcoming the challenges that happened in previous year, our visoners and the government continued to push for heavy industrialization in second year. Focusing on producing the capital goods needed to support the growing industrial base.
Additionally, financial institutions were set up to support the new industries and ensure continued growth.
Key Focus Areas for Year (1957-1958)
- Expansion of Heavy Industry: Increasing programs, making well managed management and increasing their efforts to boost production in steel and machinery sectors.
- Capital Goods Production: Now, by increasing machinery and industries, this was also important to focus on market and goods distributing to indirectly increase production.
- Financial Support: Previous years were lacked by financial support, which opened the mind of creation of financial institutions to fund industrial projects and ensure steady growth.
Achievements in Year (1957-1958)
- Establishment of Financial Institutions: The point we discussed above, the focus on financial support, has helped in the achievements of establishing great organizations like the Industrial Finance Corporation of India (IFCI) which were created to provide financing to the industrial sector.
- Operational Steel Plants: The Bhelahi and Rourkela steel plants started operations, significantly boosting India's steel production capacity. A golden bow it was like it for our economy because it increased the steel production by a great percentage.
- Public Sector Expansion: The public sector played a crucial role in industries like steel, coal, and heavy machinery, leading India's industrial growth.
Challenges in Year (1957-1958)
- Trade Deficit: India's need of imported machinery caused a widening trade problem.
- Rural Development Neglect: Other problems also included the stop on rural development programs. Critics argued that the heavy focus on industry meant that agriculture and rural development were being neglected.
Year third (1958-1959): Journey of Rebalancing and Addressing Agriculture
By the third year, the government also recognized that while the industrial sector was growing, agriculture was lagging behind.
So, they made a start on focusing agricultural sector with industrial sector too.
To prevent food shortages, resources were reallocated to support agricultural development and ensure food security.
Key Focus Areas for Year (1958-1959)
- Mid-Plan Evaluation: To know the progress and address the works properly, a review was conducted,. So that, to assess progress and address areas that needed attention.
- Agricultural Improvements: New initiatives were launched to boost food production and prevent shortages.
- Addressing Regional Imbalances: Efforts were made to ensure more balanced development across different regions of India.
The hard work of our visionary, resulted with great achievements. This motivated not only economy but our whole country and made us a trust worthy for others. The declining international image of India started again growing. Some achievements are discussed below.
Achievements in Year (1958-1959)
- Steel Production Growth: India's steel production capacity tripled, with full-scale operations in Bhelahi, Rourkela, and Durgapur.
- Support for Small Industries: Programs were introduced to promote small-scale industries and cottage industries, creating new jobs, particularly in rural areas.
Beside there were again some problems left unsolved.
Challenges in Year (1958-1959)
- Agricultural Shortfalls: Efforts were now at the best point but food production remained low due to some climate reasons, causing food shortages and pushing prices higher.
- Rising Inflation:Inflation a big problem. Industrial spending, combined with agricultural struggles, contributed to inflation, which hurt low-income families the most.
Year fourth (1959-1960): Journey of Industrial Growth And Agricultural Struggles
While industries continued to grow, India's agricultural crisis were becoming worst and worst. Rising inflation and food shortages led to social unrest. But, there were also notable successes, such as India exporting steel for the first time. Discussing on these let's move forward
Key Focus Areas for Year (1959-1960)
- Boosting Industrial Exports: The government focused on increasing exports of industrial products like steel. So that they can address trade problems wisely.
- Agricultural Crisis Management: New initiatives were launched to boost food production and improve rural infrastructure and also to handle agricultural crises.
- Public Sector Expansion: The role of the public sector has starting growing, particularly in energy and natural resources.
Achievements in Year (1959-1960)
- First Steel Exports: India successfully exported steel for the first time, a significant milestone in India's industrial journey.
- Technological Advancements: New technologies in steel production and machinery improved, which improved industrial productivity.
- Nationalization of Key Industries: Several industries were nationalized, boosting public sector output and employment. But, this was a negative work in the view of many entrepreneurs.
Challenges in Year (1959-1960)
- Food Grain Imports: India had to rely on importing large quantities of food due to poor agricultural performance.
- Social Unrest: Inflation and food shortages led to protests in various parts of the country.
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