Question

"Direct and active participation of state was considered essential in the industrial development process in the period 1950-1990." Justify the given statement with valid explanation.

Hint:

Between 1950 and 1990, the direct and active participation of the state was crucial for industrial development in India. The government played a key role in setting up heavy industries, implementing five-year plans, and regulating key sectors through public enterprises. This approach aimed at reducing dependence on foreign imports, promoting self-sufficiency, and ensuring balanced regional development.

Answer 1

Direct and Active State Participation (1950-1990): 
- Industrial Policy Resolutions (IPR): The IPR of 1956 emphasized public sector dominance in industries like steel, energy, and heavy machinery. The state took responsibility for setting up industries that required heavy investment. 
- Balanced Regional Development: The government actively set up industries in backward regions to reduce regional disparities. 
- Infrastructure Development: State intervention was essential for creating infrastructure such as transport, power, and communication networks. 
- Employment Generation and Social Equity: Industrial policies during this period aimed at providing employment and reducing income inequalities. Thus, the direct participation of the state was crucial for laying the foundation of India's industrial development during this period.