Porf. P.C. Mahalanobis found that before the Second Five Year Plan India could not afford to develop all the sectors simultaneously. It is because of the scarcity of capital and other resources that he wrote in Talks on Planning that it is suitable to invest first in heavy machinery industry. This is turn, will proved machines and other capital equipment [...]
Having critically examined the comparative analysis of balanced and unbalanced growth strategies, a logical question arises: which of these two strategies provide greater stimulus of economic growth? The unbiased and impartial opinion is that there is no need to the debate on the controversy. It is strictly based on empirical evidence and political motivation. While Paul Streeten contends that it [...]
The doctrine of unbalanced growth represents a unique and splendid contribution in accelerating the rate of economic development in backward and underdeveloped countries. This theory has tried to touch the impulses of those countries who have the paucity of funds. Thus, this approach seems to be the right choice, as it yields the following advantages: 1. Skill Formation: The pivotal [...]