The 1st FYP gave importance to the agricultural sector. But the 2nd one stressed industrial development. This raised a question for a country like India which is more important agriculture or industry.
Those who supported the agricultural sector said that the 2nd FYP had no definite plan about the agricultural sector and industries might make things more difficult for the villagers. J.C. Kumarappa, a Gandhian economist, prepared a plan about industrialization. Mr. Choudhary Charan Singh wanted greater stress to be given to the agricultural sector. He said that industrialization brings progress only to business and cities by preventing farmers and villagers from making progress.
Supporters of industrialization had a different view. They claimed that only through industries and greater production the eradication of poverty would be possible. They also claimed that there was a definite agricultural policy for the development of food crops. Through land reforms, poor villagers got land. Funds were made available for social welfare and irrigation. But these policies could not be carried out as planned. The main reason was the objection from big landowners who had political and social power. They felt that even if more money is spent on agriculture, it would not improve the lot of the villagers.