The Industrial Policy Resolution 1956 played a significant role in shaping India’s industrial development strategy. What was a key feature of this resolution?

Correct option is C

The correct answer is (c) It categorized industries into three schedules, with the public sector leading in strategic and heavy industries.
Explanation: 

• The Industrial Policy Resolution (IPR) of 1956 became the economic framework for India’s Second Five-Year Plan.

• It emphasized a socialistic pattern of society and strong role of the public sector.

• Industries were divided into three categories (schedules):

– Schedule A: Exclusively owned by the state (defense, atomic energy, heavy industries).

– Schedule B: Progressive state ownership, but private sector participation allowed.

– Schedule C: Left open for private sector, but under regulation.

• It gave priority to heavy industries, basic industries, and strategic sectors.

• This laid the foundation of India’s mixed economy model.
Information Booster:

• IPR 1956 was often called the "Economic Constitution of India" for its long-term vision.

• Led to the establishment of PSUs like BHEL, SAIL, ONGC, BARC.

• Strengthened the License Raj system, as government approval was required for private industries.

• Focus was on self-reliance, import substitution, and balanced regional growth.

• Continued until 1991, when the New Economic Policy (NEP) liberalized the economy.