The correct option is 1 and 3 only.
Explanation
The Industrial Policy Resolution (IPR) 1956 formed the basis of the Second Five-Year Plan and sought to build a "socialist pattern of society." A central tenet of this policy was the promotion of regional equality to ensure that the benefits of industrialization were distributed across different parts of the country, preventing the concentration of wealth and industry in a few developed areas.
Statement-wise Analysis
- Statement 1 is Correct: The system of industrial licensing was strategically used to control the location of industries. To foster development in underdeveloped areas, the government made it easier to obtain a license if the proposed industrial unit was to be established in a backward region. This discouraged the clustering of industries in already developed urban centers.
- Statement 2 is Incorrect: Concessions were provided to incentivize the establishment of industries in backward regions, not metropolitan cities. These incentives included tax holidays, subsidies, and the supply of electricity at lower tariffs. Providing such concessions to units in metropolitan cities would have defeated the purpose of regional decentralization.
- Statement 3 is Correct: Reducing regional disparities in industrial development was a declared objective of the IPR 1956. The policy emphasized that industrialization should benefit the economy as a whole, and specific measures were adopted to encourage investment in regions that had lagged behind in development.
Key Takeaway
The Industrial Policy Resolution 1956 utilized regulatory tools like licensing and fiscal incentives (concessions) to direct industrial growth toward backward regions, aiming to achieve balanced regional development.