What Is The Evaluation Of FM Model?

The absence of the role of foreign trade is regarded a very unsatisfactory part of the FM model since capital goods can be imported instead of being produced at home at a high cost, chiefly behind the protectionist wall which could sometimes lead to a welfare loss to the economy. The limited role the exports usually played in Indian's economy might have promoted. Mahalanobis to neglect foreign trade, but it is doubtful to what extent such a neglect of the export sectors is justified for many UDCs today.

The FM model is aggregative. Though Mahalanobis disaggregated the model later into four sectors. Komiys has shown that the value which Mahalanobis chose for yielded inefficient resource allocation as it lay within the feasibility locus between an increase in employment and a rise in output. In other words, reallocation of investment among the three sectors apart from capital goods sector would result in higher output and employment.

In the FM model the problem of unemployment has not attracted due emphasis. The capital intensive techniques may lead to enhance the unemployment in the labor economies.  
As the UDCs have a dominant agricultural sector and it is supposed by each planner that they should not overlook this big sector while making on economic model.