Question

“Government made a fresh statement of policy on the 30th April, 1956 which will help speeding up industrialisation and, in particular, to develop heavy industries and machine making industries, to expand the public sector, and to build up a large and growing co-operative sector”.

In the light of the given text and common understanding, comment upon the classification of industries under the revised policy.

Answer 1

The industries were classified under three heads as per Industrial Policy Resolution 1956:

1. The first category, comprised industries which would be exclusively owned by the government
2. The second category, the private sector, could supplement the efforts of the public sector, with the government taking the sole responsibility for starting new units.
3. The third category consisted of the remaining industries which were left in the hands of the private sector.