Question

The Government of India, in the initial years of economic development, emphasized on a greater role of the public sector in the industrial development.” Justify the statement, giving reasons in support of your answer.

Hint:

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

Answer 1

In the initial years post-independence, India’s focus was on building a socialist pattern of economy to address socio-economic inequalities and achieve self-reliance. The Industrial Policy Resolutions of 1948 and 1956 emphasized the role of the public sector in controlling basic and strategic industries, ensuring equitable distribution of resources and wealth. This approach aimed at reducing the dominance of private monopolies and promoting rapid industrialization under state supervision.