The Planning Commission was set up in 1950 with the Prime Minister as its Chairperson . It started the era of five-year plans. The goals of the five-year plans were growth, modernization, self-reliance, and equity. Hence, Statement 1 is correct. This does not mean that all goals had equal importance. Due to limited resources, a choice should be made about their priorities. The Second Five year Plan was based on the ideas of the Mahalanobis . Hence, Statement 2 is incorrect. He is regarded as the architect of Indian planning. Mahalanobis established the Indian Statistical Institute (ISI) in Calcutta and started a journal, Sankhya .