Which of the following policies was revised in 1956 to align with the objective of the Five-Year Plan?
Show answer & explanation
Correct answer: B
Explanation
Answer: Industrial Policy Resolution
Explanation:
The Industrial Policy Resolution of 1956 is known as India's 'Economic Constitution.' It was adopted to fulfill the objectives of the Second Five-Year Plan (1956–61), which was primarily based on the P.C. Mahalanobis Model. The main goal of this policy was to establish a 'Socialistic Pattern of Society.' Under this framework, industries were classified into three categories (Schedules A, B, and C), wherein heavy and strategic industries were reserved for the public sector. It established strict control over the private sector through a licensing system in order to address regional disparities.
Additional Points:
Key Objective: Rapid industrialization, with a specific focus on heavy industries (iron and steel).
Significance of the Public Sector: This policy positioned the government as the primary driver of industrial development.
Transition: This policy remained the foundation of India's industrial development until the advent of the 'New Economic Policy' in 1991.
Potential Exam Questions and Answers:
Question: Who was the 'Father of Indian Statistics' and the architect of the Second Five-Year Plan?
Answer: P.C. Mahalanobis.
Question: Into how many categories did the Industrial Policy of 1956 divide industries?
Answer: Three categories (Schedules A, B, and C).