With reference to the 'Industrial Policy Resolution 1956', consider the following statements regarding the classification of industries: 1. The first category consisted of industries owned exclusively by the government. 2. The second category consisted of industries where the private sector could start new units on their own. 3. The third category consisted of remaining industries left to the private sector. Which of the statements given above is/are correct?

The correct option is 1 and 3 only. Explanation The Industrial Policy Resolution (IPR) 1956, often regarded as the "Economic Constitution of India," laid the foundation for the Second Five-Year Plan. It classified industries into three categories (Schedules) based on the role of the state in their ownership and operation. Statement-wise Analysis: - Statement 1 is Correct: The first category (Schedule A) comprised 17 industries that were the exclusive responsibility of the State. This included strategic sectors such as arms and ammunition, atomic energy, heavy machinery, and railways. No new units in these industries could be established by the private sector. - Statement 2 is Incorrect: The second category (Schedule B) consisted of 12 industries which were to be progressively state-owned. In this category, the State would generally take the initiative in establishing new undertakings. The private sector was expected only to supplement the efforts of the State. The private sector could not autonomously start new units without state regulation, and the primary responsibility for new units lay with the government. - Statement 3 is Correct: The third category (Schedule C) consisted of all the remaining industries that were not included in the first two categories. These were left to the private sector, although they remained subject to the state's control through the system of industrial licensing (License Raj). Key Takeaway: IPR 1956 classified industries into three schedules: Schedule A (Exclusive State control), Schedule B (State-led with private supplementation), and Schedule C (Private sector). This policy institutionalized the leading role of the public sector in India's industrial development.

With reference to the 'Industrial Policy… - NCERT Class 11 Economics MCQ

NCERT Class 11 Economics — Chapter 2: Indian Economy (1950-1990)

mcqhard

With reference to the 'Industrial Policy Resolution 1956', consider the following statements regarding the classification of industries:

The first category consisted of industries owned exclusively by the government.
The second category consisted of industries where the private sector could start new units on their own.
The third category consisted of remaining industries left to the private sector.

Which of the statements given above is/are correct?

NCERT textbook question

From NCERT Indian Economic Development · Page 29

Options

A1 and 2 only
B2 only
C1, 2 and 3
D1 and 3 only

Did you get this right?

Solution

The correct option is 1 and 3 only.

Explanation

The Industrial Policy Resolution (IPR) 1956, often regarded as the "Economic Constitution of India," laid the foundation for the Second Five-Year Plan. It classified industries into three categories (Schedules) based on the role of the state in their ownership and operation.

Statement-wise Analysis:

Statement 1 is Correct: The first category (Schedule A) comprised 17 industries that were the exclusive responsibility of the State. This included strategic sectors such as arms and ammunition, atomic energy, heavy machinery, and railways. No new units in these industries could be established by the private sector.
Statement 2 is Incorrect: The second category (Schedule B) consisted of 12 industries which were to be progressively state-owned. In this category, the State would generally take the initiative in establishing new undertakings. The private sector was expected only to supplement the efforts of the State. The private sector could not autonomously start new units without state regulation, and the primary responsibility for new units lay with the government.
Statement 3 is Correct: The third category (Schedule C) consisted of all the remaining industries that were not included in the first two categories. These were left to the private sector, although they remained subject to the state's control through the system of industrial licensing (License Raj).

Key Takeaway:
IPR 1956 classified industries into three schedules: Schedule A (Exclusive State control), Schedule B (State-led with private supplementation), and Schedule C (Private sector). This policy institutionalized the leading role of the public sector in India's industrial development.

Your note

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