"The licensing policy was a conflict of objectives."Justify while throwing light on gradual reforms done in Industrial Licensing in India.
The major objectives behind Industrial policy 1956 were to reduce rural-urban divide, imbalance growth and other problems. But, the policy failed in their achievements due to several reasons. Firstly, failure in extension of industries to rural areas or backward region because private industries showed no interest in moving to backward areas. Secondly, the heavy industries under government control were rather than labour intensive and at last; the maximum potential of employment generation was in small and cottage industries, but they were downgraded due to lack of finance and government neglect.