Second Five Years Plan

The Second Five-Year Plan (1956-57 to 1960-61) sought to promote a pattern of development, which would ultimately lead to the establishment of a socialistic pattern of society in India.

Its main aims were

1. An increase of 25 per cent in the national income;
2. Rapid industrialization with particular emphasis on the development of basic and heavy industries;
3. Large expansion of employment opportunities; and
4. Reduction of inequalities in income and wealth and a more even distribution of economic power.

The Plan aimed at increasing the rate of investment from about seven percent of the national income to 11 per cent by 1960-61. It laid emphasis on industrialization, increased production of iron and steel, heavy chemicals including nitrogenous fertilizers and development of heavy engineering and machine building industry.