(a) Elaborate the reasons owing to which the private sector was regulated under the Industrial Policy Resolution, 1956.

The Industrial Policy Resolution, $\displaystyle 1956$ regulated the private sector through a system of licenses. This policy aimed at achieving regional equality. The government made it relatively easier to obtain an industrial license, for industrial units to be established in economically backward areas.

Moreover, to ensure judicious use of resources owned by the private sector, licenses were needed for expanding/diversifying output by existing industrial units.

During British rule, the agriculture sector showed massive stagnation due to the following reasons:

• The colonial government introduced the Land Settlement system. The zamindars used to exploit cultivators by extracting a major portion of the produce in the form of rent leading to misery among the farmers.

• Lack of irrigation facilities and low level of technology contributed to the dismal level of agricultural productivity, which added up to aggravate the plight of the farmers.