Question

The Industrial Policy, 1956 has been prompted by which combination of the following developments?

(i) Adoption of the Constitution of India

(ii) Implementation of Economic Planning

(iii) Acceleration of Economic Growth and Industrialisation

(iv) Availability of Sufficient Funds for Investment in the Public Sector.

Choose the correct answer from the code given below:

1. Only (i) and (ii)
2. Only (i), (ii) and (iv)
3. Only (ii), (iii) and (uv)
4. Only (ii) and (iv)

Answer 1

Correct Answer - Option 2 : Only (i), (ii) and (iv)

The Industrial Policy Resolution - 1956

1. It was shaped by the Mahalanobis Model of growth, which suggested that emphasis on heavy industries would lead the economy towards a long term higher growth path. 
2. The Resolution widened the scope of the public sector.
3. The objective was to accelerate economic growth and boost the process of industrialization as a means to achieving a socialistic pattern of society.
4. The Indian Constitution was adopted in January 1950, the Planning Commission was constituted in March 1950 and the Industrial (Department and Regulation) Act (IDR Act) was enacted in 1951 with the objective of empowering the Government to take necessary steps to regulate the pattern of industrial development through licensing.
5. This paved the way for the Industrial Policy Resolution of 1956, which was the first comprehensive statement on the strategy for industrial development in India.
6. The Industrial Policy, 1956 was an elaborate document and was hailed as the “Economic Constitution of India”. 

Thus, option 2 is the correct answer.