The Industrial Policy Resolution of 1956 categorised industries into how many groups? 

The correct answer is Three.

Key Points

• The Industrial Policy Resolution of 1956 categorised industries into three groups, referred to as Schedule A, Schedule B, and Schedule C.
• Schedule A: Included industries exclusively owned and operated by the state, such as atomic energy, railways, and defense production.
• Schedule B: Included industries where the state would play a dominant role, but private enterprises were also allowed to supplement efforts.
• Schedule C: Consisted of all remaining industries, which were left to be operated by private enterprises with state regulation and support.
• The resolution aimed to establish a socialistic pattern of society by emphasizing the public sector's role in the economy.

Additional Information

• Industrial Policy Resolution of 1956:
  • This resolution was a significant step towards shaping India's industrial framework and marked a shift towards a planned economy.
  • It emphasized the public sector's role in commanding heights of the economy while supporting the private sector for balanced development.
• Socialistic Pattern of Society:
  • The resolution aimed to reduce income inequalities, eliminate exploitation, and achieve equitable distribution of wealth and resources.
  • The concept was inspired by Nehru's vision of a mixed economy, balancing socialism and capitalism.
• Mixed Economy:
  • India adopted a mixed economy model, allowing both public and private sectors to coexist while the government regulated essential industries.
  • This framework sought to combine the efficiency of the private sector with the social welfare focus of the public sector.
• Impact of the 1956 Resolution:
  • The resolution led to the establishment of key public sector enterprises (PSUs) like steel plants, power projects, and heavy engineering industries.
  • It served as the foundation for India's industrial policies until the economic liberalization reforms of 1991.