The second plan pattern of industrial investment, with its marked shift in favour of capital good industries, was deeply influenced by the two-sector growth model developed by Mahalanobis. The substantial contributions of the Institute to theoretical and applied work, its training and promotional activities culminated in recognition by the Government of India.
The Parliament passed the Indian Statistical Institute Act, 1959 which declared the Institute as an “Institution of National Importance” and empowered it to award degrees and diplomas in Statistics. The first computer of the country was installed in ISI in 1960. Subsequently, ISI made significant contributions to the development of advanced numerical algorithms.