Question
Download Solution PDFThe Industrial Policy Resolution, 1956 classified the industries into _____ categories.
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFthe correct answer is three.
Key Points
- The Industrial Resolution Policy 1956 was developed due to the changes that occurred due to the economic and political developments in different spheres that called for the changes in industrial policy in a short period of operation in the 1948 Industrial Policy.
- The 1956 policy divided the industries into 3 categories based on management.
- It was based upon the Mahalanobis Model of growth which advocated that emphasis should be laid on the heavy industries, which can increase the economic output of the country.
- Mahalanobis model suggested the dominance of the heavy industries.
Additional Information
IPR, 1956 classified industries into three categories
- Schedule A- 17 industries were the exclusive responsibility of the State. Out of the 17 industries, four industries- arms and ammunition, atomic energy, railways and air transport had Central Government monopolies; new units in the remaining industries were developed by the State Governments.
- Schedule B- 12 industries, were open to both the private and public sectors; however, such industries were progressively State-owned.
- Schedule C- All the other industries not included in these two Schedules constituted the third category which was open to the private sector. However, the State reserved the right to undertake any type of industrial production.
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