Consider the following statements about industrial policy during 1950-1990:
(A) The Industrial Policy Resolution of 1956 classified industries into three categories.
(B) The first category comprised industries which would be exclusively owned by the government.
(C) In the second category, the private sector could start new units, with the government supplementing its efforts.
(D) Even an existing industry had to obtain a licence for expanding output or for producing a new variety of goods.
(E) The 1956 resolution formed the basis of the Second Five Year Plan, which tried to build a capitalist pattern of society.
How many of the above statements are correct?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Three
(A) The Industrial Policy Resolution of 1956 classified industries into three categories. — Correct. State-owned, mixed and private.
(B) The first category comprised industries which would be exclusively owned by the government. — Correct. Only the state could own them.
(C) In the second category, the private sector could start new units, with the government supplementing its efforts. — Incorrect. It is the reverse. The private sector supplemented the public sector, and the government alone started new units.
(D) Even an existing industry had to obtain a licence for expanding output or for producing a new variety of goods. — Correct. A licence was needed to expand or diversify.
(E) The 1956 resolution formed the basis of the Second Five Year Plan, which tried to build a capitalist pattern of society. — Incorrect. The Second Plan tried to build a socialist pattern of society.
So (A), (B) and (D) are correct: three statements.
NCERT (2026-27): “2.4 Industry and Trade … Industrial Policy Resolution 1956 (IPR 1956): In accordance with the goal of the state controlling the commanding heights of the economy, the Industrial Policy Resolution of 1956 was adopted. This resolution formed the basis of the Second Five Year Plan, the plan which tried to build the basis for a socialist pattern of society. This resolution classified industries into three categories. 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.” “… Even an existing industry had to obtain a license for expanding output or for diversifying production (producing a new variety of goods). …” |