Question

Read the following text carefully: {India’s industrial policy since independence has been shaped broadly in terms of the Industrial Policy Resolution of 1948. It emphasized on the sole responsibility of the government in the matter of promoting, assisting, and regulating the development of industries in the national interest. It envisaged an active and dominant role of public sector.} {The next Industrial Policy Resolution was placed before the Parliament by the Prime Minister on 30th April, 1956. It suggested that, “There is a need for adoption of the socialist pattern of economy as the national objective, along with the need for planned and rapid development. It required that all industries of basic and strategic importance, or in public utility services, should be in the public sector.} {Other industries which are essential and require investment on a massive scale (which only the State could provide) have also to be in the public sector. Thus, the State has to assume direct responsibility for the future development of industries.”} {This Resolution classifies industries into three categories:} {The first category given in Schedule A, consists of industries the future development of which will be the exclusive responsibility of the State.} {In the second category given in Schedule B, are industries which will be progressively State-owned. However, in them, private enterprise will also be expected to participate.} {The third category comprises all the remaining industries, the further development of which will be left to the initiative and enterprise of the private sector.} On the basis of the given text and common understanding, answer the following questions:

Hint:

India’s early industrial policies emphasized the public sector to promote equity, self-reliance, and controlled industrial growth.

Answer 1

Following independence, India prioritized establishing a socialist economy to mitigate socio-economic disparities and attain self-sufficiency. The Industrial Policy Resolutions of 1948 and 1956 underscored the public sector's crucial role in managing foundational and strategic industries, ensuring fair resource and wealth distribution. This strategy sought to diminish private monopoly power and foster swift, state-guided industrial growth.