Question

Outline and discuss the classification of industries into various categories as per Industrial Policy Resolution, 1956.

Hint:

The Industrial Policy Resolution, 1956, classified industries into three categories based on state control: exclusive (Schedule A), progressive (Schedule B), and private (Schedule C).

Answer 1

Schedule A: Includes industries of national and strategic importance, such as defense, atomic energy, and railways. The future development of these industries was to be the exclusive responsibility of the State. 
Schedule B: Includes industries that were to be progressively state-owned, with private sector participation under government regulation. Examples include chemical industries, fertilizers, and machine tools. 
Schedule C: Includes all remaining industries not covered under Schedules A and B. The development of these industries was left to private enterprise, although the State could guide and support them.