Multiple Choice Questions on With reference to the Industrial Policy Resolution 1956 of India consider the following statements 1........... for MPPCS Exam Preparation

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Indian Economy - Understanding the basics of Indian economic system

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    With reference to the Industrial Policy Resolution 1956, of India, consider the following statements:

    1. This resolution formed the basis of the Second Five-Year Plan.

    2. The purpose of this policy was to promote regional equality.

    3. No new industry was allowed to be set up without a license from the government.

    How many of the statements given above are correct?

    Only one 

    Incorrect Answer

    Only two 

    Incorrect Answer

    All three

    Correct Answer

    None 

    Incorrect Answer
    Explanation:

    Industrial Policy Resolution 1956 (IPR 1956): In accordance with the goal of the state controlling the commanding heights of the economy, the Industrial Policy Resolution of 1956 was adopted. Statement 1 is correct: 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. This resolution classified industries into three categories. • Exclusively owned by the government • Industries in which the private sector could supplement the efforts of the public sector, with the government taking the sole responsibility for starting new units • Remaining industries which were to be in the private sector. Statement 2 is correct: This policy was used to promote industry in backward regions. The purpose of this policy was to promote regional equality. Statement 3 is correct: Although there was a category of industries left to the private sector, the sector was kept under state control through a system of licenses. No new industry was allowed unless a license was obtained from the government. 


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