It is becoming increasingly apparent that the rate of economic growth in India will have to be increased if the standard of living is to rise significantly within the foreseeable future. At the moment India is completing her Second Five-Year Plan. The objectives of the plan are indeed very modest. They provide for a 25 per cent increase in the national income and an 18 per cent increase in the per capita income over a five-year period. To reach these objectives, investment in the private and public sectors was to be increased to a rate of 10.68 per cent of the national income by 1961. An 18 per cent increase would raise the per capita income of India to only Rs 331 ($69.50) and the investment rate of 10.68 per cent may be just about sufficient for a take-off into economic development. Nevertheless, almost immediately after these targets were approved, doubts appeared whether the necessary funds for investment would become available. Although more foreign aid was provided than was originally expected, this was more than offset by the difficulties faced in mobilizing domestic resources. By 1958 the total objectives were revised downward by about 12 per cent.