Q. Consider the following statements regarding Industrial Policy Resolution of 1948:
1.It was made clear that India is going to have mixed economic model.
2.It classified industries into three types.
Which of the statements given above is/are correct?
Explanation: Industrial Policy Resolution of 1948- It defined the broad contours of the policy delineating the role of the State in industrial development both as an entrepreneur and authority.
It made clear that India is going to have a Mixed Economic Model.
It classified industries into four broad areas:
- Strategic Industries (Public Sector): It included three industries in which Central Government had monopoly. These included Arms and ammunition, atomic energy and Rail transport.
- Basic/Key Industries (Public-cum-Private Sector): 6 industries viz. coal, iron & steel, aircraft manufacturing, ship-building, manufacture of telephone, telegraph & wireless apparatus, and mineral oil were designated as “Key Industries” or “Basic Industries”. These industries were to be set-up by the Central Government. However, the existing private sector enterprises were allowed to continue.
- Important Industries (Controlled Private Sector): It included 18 industries including heavy chemicals, sugar, cotton textile & woollen industry, cement, paper, salt, machine tools, fertiliser, rubber, air and sea transport, motor, tractor, electricity etc. These industries continue to remain under private sector however, the central government, in consultation with the state government, had general control over them.
- Other Industries (Private and Cooperative Sector): All other industries which were not included in the above mentioned three categories were left open for the private sector.
The industries (Development and Regulation) Act was passed in 1951 to implement the Industrial Policy Resolution, 1948.
Source: TMH Ramesh Singh