As per Industrial Policy Resolution of 1956, under what conditions was a license granted for expanding production in an existing industry?
Answer & explanation
Correct answer: option 1
The correct answer is option 1: If the government required a larger quantity of goods.
As per the Industrial Policy Resolution of 1956, even an existing industry had to obtain a license for expanding output or diversifying production. This license was granted by the government only if it was convinced that there was a need for a larger quantity of goods in the economy. This measure ensured that production was aligned with the requirements of the economy.