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.

The correct answer is option 3: Assertion (A) is true but Reasoning (R) is not correct.

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

Reasoning: There was little control of government over the private sector as per Industrial Policy Resolution of 1956. This is false. IPR 1956 actually established a very high degree of government control over the private sector, rather than "little control." This was achieved through the Industrial Licensing System (often called the "License Raj"). A private firm could not start a new industry, expand its production capacity, or diversify its product line without obtaining a license from the government. The state used this control to ensure that industries were directed toward social goals, such as promoting regional equality by granting licenses more easily to those willing to set up factories in economically backward areas. Therefore, the private sector was heavily regulated and monitored by the state.

NCERT: 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.