The Second Five Year Plan: A Tentative Framework March 21, 1955

Abstract

The Second Five-Year Plan (1956–1961) laid out an ambitious framework for India’s economic development, aiming to increase national income, promote rapid industrialization, ensure full employment, and achieve social justice. With an estimated investment of ₹5,600–8,800 crores, the plan emphasized heavy industries, infrastructure, agriculture, and community development. Financing strategies combined domestic revenue, taxation, foreign assistance, and limited deficit financing while addressing inflation risks. The plan also prioritized small-scale industries, employment creation, land reforms, and equitable distribution of resources. By linking industrial growth with social objectives and establishing robust institutional frameworks, the plan sought to foster sustainable economic development and lay the foundation for a socialistic pattern of development in India.