In India, which of the following statement is correct regarding Industrial Policy Resolution 1956?
I. It classified industries into three categories.
II. The first category comprised industries were exclusively reserved for private players.
Show answer & explanation
Correct answer: A
Explanation
Correct Answer: Option 1: Only I
Explanation:
India's Industrial Policy Resolution (IPR) 1956, also known as India's 'Economic Constitution', formed the basis of the Second Five-Year Plan.
Statement I is correct: This policy classified industries into three categories (Schedule A, B, and C).
Statement II is incorrect: The first category (Schedule A) included 17 industries exclusively reserved for the state (government), not for private players. The private sector was given a prominent place only in the third category (Schedule C).
Additional Facts:
Schedule A: 17 industries (completely government controlled, such as weapons, nuclear energy, railways).
Schedule B: 12 industries (the government would play the primary role, but the private sector could complement).
Objective: To promote regional equality and develop heavy industries.
License Raj: Under this policy, government licenses were made mandatory for setting up new industries.
Possible questions for the upcoming exam:
Which industrial policy is called the 'economic constitution' of India?
(Answer: 1956 policy).
How many industries were included in 'Schedule A' under the IPR 1956?
(Answer: 17).
The 1956 Industrial Policy was the mainstay of which Five-Year Plan?
(Answer: Second Five-Year Plan).