"Apart from the four fold classification of the industries; the Industrial Policy 1948 endeavoured to protect cottage & small scale industries by according them priority status."Throw light.
Under this policy, the large industries were classified in four categories viz. Strategic Industries, Basic / Key industries, Important Industries and other industries which respectively referred to Public Sector; Public-cum-Private Sector; Controlled Private Sector and Private & Cooperative sector. Further, it provided for Protection of cottage & small scale industries and this sector was accorded priority status. It also had taken into account Gandhi’s economic philosophy, fair wage rates, social security and workers participation in management etc.
With this policy, India ushered into a mixed economy taking the society on socialistic pattern. The core idea was to keep the strategic and basic industries under the exclusive ownership / control of Government. The central and state governments had a virtual monopoly in railroads and exclusive rights to develop minerals, iron ore etc. The 18 important industries were to be developed under direct control and regulation of the government.