The correct option is It quoted that planning should initiate a process of development to raise living standards..
Explanation
The First Five Year Plan (1951-1956) was the inaugural attempt by the Government of India to address immediate post-independence economic challenges, such as the influx of refugees and severe food shortages. It was formulated based on the Harrod-Domar model.
- It focused primarily on heavy industries. is Incorrect: The First Five Year Plan focused primarily on the agrarian sector, including significant investments in dams and irrigation projects (e.g., Bhakra Nangal). The strategic shift toward heavy industries occurred in the Second Five Year Plan.
- It quoted that planning should initiate a process of development to raise living standards. is Correct: The draft of the First Five Year Plan explicitly defined the goal of planning as a means to "initiate a process of development which will raise living standards and open out to the people new opportunities for a richer and more varied life."
- It was based on the Mahalanobis model. is Incorrect: The First Plan utilized the Harrod-Domar model, which posits that growth depends on the savings rate and capital-output ratio. The Mahalanobis model was adopted for the Second Five Year Plan to drive industrialization.
- It aimed to privatize all public sector units. is Incorrect: The plan did not aim for privatization. Instead, it laid the foundation for a mixed economy, envisioning a significant and expanding role for the public sector in key areas of the economy.
Key Takeaway: The First Five Year Plan (1951-1956) prioritized agriculture and irrigation to achieve food security and was grounded in the Harrod-Domar model.