Question

Under the Industrial Policy Resolution, 1956, Category 1 industries were:

Options

• Left open to the private sector

• Exclusively reserved for the government (public sector)

• Open to the private sector with government minority control

• Reserved exclusively for small-scale industries

Answer 1

Category 1 industries were exclusively reserved for the government, i.e., the public sector. This arrangement reflected the decision to give the public sector the commanding heights of the economy.