Match the following.
| 1. | The strategy used for self-reliance | A.Small scale industries | |
| 2. | Labour absorbing | B.Land ceilings | |
| 3. | Agricultural reforms | C.IPR 1956 | |
| 4. | 3 fold classification of the industry | D.Import substitution | |
Answer & explanation
Correct answer: option 3
The correct answer is option 3: 1-D, 2-A, 3-B, 4-C
| 1. | The strategy used for self-reliance | D.Import substitution | |
| 2. | Labour absorbing | A.Small scale industries | |
| 3. | Agricultural reforms | B.Land ceilings | |
| 4. | 3 fold classification of the industry | C.IPR 1956 | |
- India's economy was dependent on foreign goods for its sustenance, thus, an import substitution policy/ inward-looking trade policy was introduced by the officials to make self-reliant
- The manufacturing sector is the most labor-absorbing sector. As huge capital cannot be afforded by everyone government emphasizes the development of SSI i.e. small-scale industries.
- Agriculture reforms included land ceilings to reduce the concentration of ownership in the country.
- Industrial Policy Resolution 1956 (IPR 1956): This resolution classified industries into three categories. The first category comprised industries that would be exclusively owned by the state; the second category consisted of industries in which the private sector could supplement the efforts of the state sector, with the state taking the sole responsibility for starting new units; the third category consisted of the remaining industries which were to be in the private sector.