Arrange the following statements regarding Indian industries in the sequence of their occurrence
(A) The Tata Iron and Steel Company was incorporated.
(B) Industries were opened in backward region.
(C) British India government led to collapse of Indian Small Scale Industries.
(D) Industrial licensing was abolished.
(E) The Industrial Policy Resolution was adopted.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (C), (A), (E), (B), (D)
(C) British India government led to collapse of Indian Small Scale Industries. — Colonial period. Under British rule, India’s famous handicraft industries declined.
(A) The Tata Iron and Steel Company was incorporated. — 1907, still under British rule.
(E) The Industrial Policy Resolution was adopted. — After Independence. The first came in 1948, and the Industrial Policy Resolution of 1956 became the basis of the Second Five Year Plan.
(B) Industries were opened in backward region. — Under this policy, no new industry could start without a licence. A licence was easier to get for a unit set up in an economically backward area.
(D) Industrial licensing was abolished. — 1991. The economic reforms abolished licensing for almost all industries.
NCERT (2026-27): “1.4 Industrial Sector As in the case of agriculture, so also in manufacturing, India could not develop a sound industrial base under the colonial rule. Even as the country’s world famous handicraft industries declined, no corresponding modern industrial base was allowed to come up to take pride of place so long enjoyed by the former.… …Subsequently, the iron and steel industries began coming up in the beginning of the twentieth century. The Tata Iron and Steel Company (TISCO) was incorporated in 1907.…” NCERT (2026-27), chapter ‘Indian Economy 1950-1990’: “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.… 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. This policy was used for promoting industry in backward regions; it was easier to obtain a license if the industrial unit was established in an economically backward area.…” NCERT (2026-27), chapter ‘Liberalisation, Privatisation and Globalisation: An Appraisal’: “Deregulation of Industrial Sector: … The reform policies introduced in and after 1991 removed many of these restrictions. Industrial licensing was abolished for almost all but product categories — alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and drugs and pharmaceuticals.…” |