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%.