The first Five year plan of India was based on:
Correct Answer :
Herror-domar model.
Solution :
The correct option is Herror-domar model.
Understanding the First Five-Year Plan of India:
The First Five-Year Plan of India was launched in 1951 and covered the period from 1951 to 1956. Primary focus was placed on the agricultural sector to boost food supply, control inflation, and support the economy after independence and partition.
Economic Model: Harrod-Domar Model:
The plan was based on the Harrod-Domar model (spelled as Herror-domar model in the options), an economic growth model developed independently by Roy F. Harrod and Evsey Domar. This model suggested that economic growth depends on two main factors:
1. High rates of savings and investment.
2. Efficient utilization of capital (low capital-output ratio).
Because the immediate priority of post-independence India was rebuilding infrastructure and expanding agriculture, heavy emphasis was laid on savings and capital accumulation to achieve stable growth, making the Harrod-Domar framework ideal for this initial phase.
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