Why did the Indian government resort to licensing even for expanding existing private sector industries under IPR 1956?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. To keep production under government control.
Under the Industrial Policy Resolution (IPR) 1956, the government utilized "Industrial Licensing" to maintain strict control over the private sector. The primary goal was to ensure that resources were allocated according to national priorities rather than market demand. By requiring licenses for expansion, the government aimed to prevent the concentration of wealth, monitor production capacities, and promote regional equality by encouraging industries in backward regions to achieve a balanced socialist pattern of society.