Assertion:As per Industrial Policy Resolution of 1956, a category of industries left to the private sector for operation.

Reasoning: There was little control of government over the private sector as per Industrial Policy Resolution of 1956.

Assertion (A) is true but Reasoning (R) is not correct.

In accordance with the goal of the state controlling the commanding heights of the economy, the Industrial Policy Resolution of 1956 was adopted. . The first category comprised industries which would be exclusively owned by the government; the second category consisted of industries in which the private sector could supplement the efforts of the public sector, with the government taking the sole responsibility for starting new units; the third category consisted of the remaining industries which were to be in the private sector. Although there was a category of industries left to the private sector, the sector was kept under state control through a system of licenses. No new industry was allowed unless a license was obtained from the government.