Which of the following is a correct statement about Industrial Policy Resolution 1956?
I.This resolution formed the basis of the Second Five-Year Plan, the plan which tried to build the basis for a socialist pattern of society.
II. This resolution classified industries into two categories only. The first category comprised industries which would be exclusively owned by the private sector.
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Correct option is D

The correct answer is (d) Only I

Explanation:

Statement I is correct:

• The Industrial Policy Resolution (IPR) of 1956 was indeed the cornerstone for the Second Five-Year Plan (1956–61).
• The resolution emphasized the creation of a socialist pattern of society through state-led industrialization, focusing on the development of the public sector and reducing income inequalities.

Statement II is incorrect:

The IPR 1956 divided industries into three categories, not two. These were:

• Schedule A: Industries exclusively owned by the state.
• Schedule B: Industries in which the state would progressively assume ownership, but the private sector could supplement.
• Schedule C: All remaining industries to be left to the private sector.

Information Booster:

• The IPR 1956 gave the public sector a strategic role in the economy.
• It laid the foundation for the License Raj, where private sector participation was highly regulated.
• It emphasized reducing regional disparities, increasing employment opportunities, and promoting small-scale industries.

Additional Knowledge:

• Industrial Policy Resolution 1948: Marked the beginning of industrial planning in India post-Independence.
• New Industrial Policy 1991: Liberalized the economy, dismantled the License Raj, and opened up the Indian economy to foreign investments.