Industrial Policy Resolution 1956 – Features & Objectives

Industrial Policy Resolution (IPR) 1956 is a landmark document in India’s industrial history.

1. Background

• Adopted after Independence to guide India’s industrial development in a planned economy framework.
• Aimed at achieving self‑reliance, balanced regional growth, and reducing dependence on foreign imports.
• Reflected the socialist pattern of society envisioned in the Constitution, emphasizing state control over key sectors.

2. Classification of Industries

Schedule A – Public Sector (State Monopoly)

• Defence, atomic energy, railways, air transport, coal, iron and steel, shipbuilding, mineral oils, and other heavy industries critical for national security and infrastructure.
• Exclusive public sector: No private participation allowed.

Schedule B – Mixed Sector (State + Private)

• Industries where both public and private sectors could operate, but the state had a leading role.
• Included machine tools, chemicals, fertilizers, drugs, and telecommunication equipment.

Schedule C – Private Sector

• All other industries not listed in Schedules A and B were open to the private sector, though subject to licensing and regulation.

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3. Main Objectives of IPR 1956

1. Accelerated Industrial Growth – Promote rapid industrialization to increase national income and employment, laying the foundation for a modern industrial economy.

2. Balanced Regional Development – Encourage establishment of industries in backward and underdeveloped regions to reduce regional disparities and integrate them into the national economy.

3. Self‑Reliance and Import Substitution – Reduce dependence on foreign imports by developing domestic capacity in critical sectors such as heavy machinery, steel, and chemicals.

4. Social Justice and Equity – Ensure that the benefits of industrialization are widely shared, preventing concentration of economic power and promoting equitable distribution of wealth.

5. Development of Small-Scale Industries – Foster the growth of small and medium enterprises to complement large industries and generate widespread employment opportunities.

6. Technological Advancement – Promote indigenous research and development and acquisition of modern technology to enhance productivity and competitiveness.

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5. Quick Revision Points

• IPR 1956 = socialistic pattern, economic constitution.
• Three schedules dividing industries between public and private sectors.
• Objectives: rapid industrialisation, strong public sector, balanced regional and sectoral growth.

6. Quiz Time 🎯

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