The adoption of the industrial policy of 1956 coincided with which Five-Year Plan?

Key Points

• The adoption of the industrial policy of 1956 coincided with the 2nd Five-Year Plan in India.
• The 2nd Five-Year Plan focused on the development of the public sector and rapid industrialization.
• The Industrial Policy Resolution of 1956 laid down the framework for the development of industries and aimed at establishing a socialistic pattern of society.
• This policy categorized industries into three schedules: those exclusively owned by the state, those progressively state-owned, and those left to private sector development.
• It emphasized the role of the public sector in controlling the commanding heights of the economy.

Additional Information

• The 2nd Five-Year Plan (1956-1961) was based on the Mahalanobis model, which gave priority to heavy industries and aimed to build a strong industrial base.
• The plan aimed at increasing the national income by 25% and the per capita income by 11%.
• The industrial policy of 1956 played a crucial role in shaping India's industrial landscape and promoting balanced regional development.
• It was during this plan that significant projects like the Bhilai Steel Plant, Durgapur Steel Plant, and Rourkela Steel Plant were established.