Lack In Certain things

Simultaneous investments in number of industries would exert powerful pressure on the existing resources and this will raise their prices and cost of production. Ultimately the process will lead to inflation. The five year plan clearly exhibits that the country could not check the inflationary trends. All industries have to depend on the same limited supply of productive resources. Unless the supply of factors of production is perfectly elastic, the balanced growth cannot be smooth and in undeveloped countries the supply of factors will not be elastic. Thus the strategy of balanced growth has many practical difficulties in its implementation. Judged from Indian economy, it is not a balanced one.