Correct Option
The correct option is 1 and 3 only.
Explanation
The Industrial Policy Resolution (IPR) 1956 is often referred to as the "Economic Constitution of India." It provided the policy framework for the Second Five-Year Plan (1956-1961) and aimed to accelerate the rate of economic growth and speed up industrialization, particularly through the development of heavy industries and the expansion of the public sector.
Statement-wise Analysis
- Statement 1 is Correct: The resolution was adopted to further the objective of establishing a "socialist pattern of society," a goal formally accepted by the Parliament in 1954. It emphasized reducing income disparities and preventing the concentration of economic power in private hands.
- Statement 2 is Incorrect: The IPR 1956 classified industries into three categories:
- Schedule A (First Category): Industries exclusively owned by the state (17 industries, e.g., arms, atomic energy, railways).
- Schedule B (Second Category): Industries to be progressively state-owned. The state would generally take the initiative in establishing new undertakings, but the private sector was expected to supplement the effort of the state (12 industries). They were not exclusively owned by the private sector.
- Schedule C (Third Category): All remaining industries were left to the private sector.
- Statement 3 is Correct: The private sector was kept under state control through a rigorous system of industrial licensing (under the Industries Development and Regulation Act, 1951). A license was mandatory for opening a new industry, expanding existing capacity, or producing a new type of good. This system was used to regulate the location of industries and promote regional equality.
Key Takeaway
The IPR 1956 categorized industries into three schedules based on the role of the state and established the "License Raj" system to regulate the private sector, ensuring alignment with the goal of a socialist pattern of society.