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The Industrial Policy Resolution of 1956 classified industries into how many categories?
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Answer: Option D — Three
Detailed Solution
The Industrial Policy Resolution (IPR) of 1956 was adopted on 30 April 1956, during the Second Five-Year Plan. It replaced the first Industrial Policy Resolution of 1948 and is often called the "economic constitution of India", because it shaped India's industrial development for more than three decades.
The Resolution aimed at a "socialistic pattern of society", rapid industrialisation, the development of heavy and basic industries, and a larger role for the public sector. It divided industries into three categories, called schedules:
Schedule A: 17 industries whose future development would be the exclusive responsibility of the State. These included arms and ammunition, atomic energy, iron and steel, heavy machinery, coal, mineral oils, railways, air transport, and the generation and distribution of electricity.
Schedule B: 12 industries which would be increasingly state-owned. The State would generally set up new units, but private enterprise could also take part. Examples were aluminium, machine tools, fertilisers, road transport and sea transport.
Schedule C: all the remaining industries, which were left to the private sector, subject to licensing and regulation by the government.
The Resolution also stressed the importance of small-scale and cottage industries, balanced regional development, and better conditions for workers. Together with the Industries (Development and Regulation) Act, 1951, it led to the "licence raj", which was largely dismantled by the New Industrial Policy of 24 July 1991.
Why not the other options?
Two, Four and Five are incorrect. The 1948 Resolution had divided industries into four categories, which is a common source of confusion.
Quick tip
Remember: IPR 1956 = three schedules (A: 17 State-only industries, B: 12 mixed, C: private sector), called the "economic constitution of India". IPR 1948 had four categories.
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