The first industrial policy of Government of India was announced in ______.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2: 1948.
Explanation:
Independent India's first Industrial Policy (Industrial Policy Resolution) was announced on April 6, 1948.
Announcer: It was introduced by the then Minister of Industries and Commerce, Dr. Syama Prasad Mookerjee.
Mixed Economy: Through this policy, India formally adopted the 'Mixed Economy' model, in which both the Public and Private sectors were expected to work together.
Classification: Industries were categorized into four groups:
Complete Government Monopoly: Such as arms and ammunition, atomic energy, and railways.
Mixed Sector: Where new units were to be established exclusively by the government (e.g., coal, iron, and steel).
Private Sector under Government Control: Key industries that were within the private sector but subject to government regulation.
Private Sector: All other industries.
Other Significant Industrial Policies:
- The 1956 Policy: Often referred to as India's 'Economic Constitution.' It emphasized the 'Socialist Pattern of Society.'
The 1977 Policy: This policy prioritized small-scale and cottage industries.
Additional Facts:
- Cottage Industries: The 1948 policy marked the first time that the importance of cottage and small-scale industries received official recognition.
- Foreign Investment: The policy clarified that while foreign capital would be welcomed, control must remain in Indian hands.
Potential Questions for Upcoming Exams:
Question: Which Industrial Policy is considered India's 'Economic Constitution'?
Answer: The Industrial Policy of 1956.
Question: Who announced India's first Industrial Policy?
Answer: Dr. Syama Prasad Mookerjee.
Question: In which year was the 'New Economic Policy' implemented? Answer: 1991 (by the P.V. Narasimha Rao government).
- The New Industrial Policy of 1991: It introduced LPG (Liberalization, Privatization, and Globalization), which opened up the Indian economy.