Read the following Assertion (A) and Reason (R) carefullly and choose the correct option.
Assertion (A) : The IPR 1956 created and industrial classification into Schedules A, B and C.
Reason (R): This was to identify sectors for exclusive state control, joint sectors, and private sector operation.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Both A and R are true and R is the correct explanaiton of A.
The Assertion (A) is correct because the Industrial Policy Resolution 1956 divided industries into Schedule A, B, and C. Schedule A industries were to be completely owned and operated by the state, Schedule B industries allowed both government and private participation but with the state playing a dominant role, and Schedule C industries were largely left to the private sector.
The Reason (R) is also correct because this classification was designed to clearly define the role of the public sector and private sector in India’s planned economic development.
Moreover, the Reason correctly explains the Assertion, as the schedules were specifically created to identify exclusive state sectors, mixed sectors, and private sector activities.
Therefore, the correct option is: Both A and R are true, and R is the correct explanation of A.