Read the following text carefully: India’s industrial policy since independence has been shaped broadly in terms of the Industrial Policy Resolution…

Read the following text carefully :

India’s industrial policy since independence has been shaped broadly in terms of the Industrial Policy Resolution of 1948. It emphasized on the sole responsibility of the government in the matter of promoting, assisting and regulating the development of industries in the national interest. It envisaged an active and dominant role of public sector.

The next Industrial Policy Resolution was placed before the Parliament by the Prime Minister on 30th April, 1956. It suggested that, “There is a need for adoption of the socialist pattern of economy as the national objective, along with the need for planned and rapid development. It required that all industries of basic and strategic importance, or in public utility services, should be in the public sector.

Other industries which are essential and require investment on a massive scale (which only the State could provide) have also to be in the public sector. Thus, the State has to assume direct responsibility for the future development of industries.”

This Resolution classifies industries into three categories :

On the basis of the given text and common understanding, answer the following questions :

“The Government of India, in the initial years of economic development, emphasized on a greater role of the public sector in the industrial development.”

Justify the statement, giving reasons in support of your answer.

Outline and discuss the classification of industries into various categories as per Industrial Policy Resolution, 1956.