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Consider the following with reference to the First Five year Plan (FYP).
1. The First Five Year Plan choose heavy industries as the “prime moving force” of the economy.
2. The University Grants Commission (UGC) was set up at the end of the plan period.
3. It was followed by the Bombay Plan which became the basis of the Second Five Year Plan in India.
Select the correct answer using the codes below.
1 and 2 only
2 only
3 only
1 and 3 only
1st and 3rd statements are incorrect. The First Five-year Plan was launched in 1951 which mainly focused in development of the primary sector. The Second Plan was particularly in the development of the public sector and "rapid Industrialisation". The plan followed the Mahalanobis model, an economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953. The plan attempted to determine the optimal allocation of investment between productive sectors in order to maximise long-run economic growth.
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