Question

The Industrial Policy Resolution, 1956 has categorised industries on the basis of ownership.
Discuss.

Answer 1

According to the Industrial Policy Resolution, 1956, industries were classified into three categories on the basis of ownership:
(i) The first category consisted of industries which could be established and developed exclusively as public sector enterprises.
(ii) The second category consisted of industries which could be established both as public sector enterprises and private sector enterprises, with the private sector being given a secondary role.
(iii) The third category consisted of all industries other than those specified in the above categories and was open for the private sector.