Mahalanobis Model in India: Indian Economy Notes for UPSC
The Mahalanobis model divides the economy into two major sectors: the consumer goods sector and the capital goods sector.associated with India’s Secon
Mahalanobis Model in India Introduction The Mahalanobis Model is a framework for economic planning and development, particularly associated with India’s Second Five-Year Plan (1956-1961). Developed by the renowned Indian statistician, Prasanta Chandra Mahalanobis, the model emphasized the importance of heavy industries and capital goods sectors for achieving sustainable economic growth. The model is significant for its contributions to India's post-independence economic planning, which focused on achieving economic self-sufficiency and industrialization. 1. Background and Concept Mahalanobis’ Contribution: Mahalanobis, an eminent statistician, was instrumental in establishing the Indian Statistical Institute (ISI) and played a key role in the economic planning process during the early years of India's independence. The Mahalanobis Model was formulated to achieve rapid industrialization and promote economic development through a strategy based on the mobilization of resources in specif…