Growth of Industrial Sector from 1961 to 1970

During 1961-70, second (1960-65) and third (1965-70) five years plans were implemented. In the second five-year plan (1960-65) a sum of Rs.513 crore was allocated (22.2% of total outlay) for growth of industrial sector. During this plan, the incentives for. Investment, credit facilities provided by PIDC and PICIC and above all the stability in the country largely contributed to the widening of the industrial base. Self-sufficiency in essential consumer goods industries was achieved.

There was a shift of investment from consumer goods industries to capital goods industries e.g., petrochemical, electrical and iron & steel industries etc., which further contributed to the growth of the industrial sector,

In the third five years plan (1965-70), a sum of Russ. 223.11 crore was allocated for industrial development. Due to 1965 war with India, the industrial targets were not achieved, as resources were diverted from development Defiance industrial sector could grow rate of 7.8%.