Which of the following statements is/are correct about the First Five Year Plan?

1. Its objective was to initiate simultaneously a process of all round development, which would ensure a rise in the national income and a steady improvement in the living standards of the people.

2. It is called the Mahalanobis Plan, because it was the brainchild of economist P.C. Mahalanobis.

Select the correct answer using the code given below:

• The First Five-Year Plan had a two-fold objective:

1. To correct the disequilibrium in the economy caused by the Second World War and the partition of the country.

2. To initiate simultaneously a process of all round development, which would ensure a rise in the national income and a steady improvement in the living standards of the people.

• This Plan was based on the Harrod Domar Model. The Plan accorded highest priority to agriculture, including irrigation and power projects. The Plan also aimed at increasing the rate of investment from 5% to 7% of the national income. The growth rate achieved in this Plan was 3.6%.