Discuss the salient features of the Industrial Policy Resolution 1956 throwing light on its outcomes.
Published: February 6, 2016
The Industrial Policy Resolution of 1956 was based upon the Mahalanobis Model of growth, which laid emphasis on the heavy industries.It classified industries into threefold in Schedule A, B and C industries.
- Schedule A Industries -strictly under the Central Government
- Schedule B Industries-were put under the State Governments
- Schedule C Industries-left with the private sectors
Under industrial policy 1956, scope of public sector got widened and with compulsory licensing for schedule B & C industries central government had good control over private sector and state government. Also; the policy welcomed FDI and gave priority to industrial development in the backward regions.
Model Questions Category: 075 - Changes in Industrial Policy and Their Effects On Industrial Growth