State the salient features of 1956 Industrial Policy Resolution. How far the objectives of this policy could be achieved

The 1956 Industrial Policy Resolution in India aimed to lay the foundation for the industrial development of the country.

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Its salient features include:

1. Public sector dominance: The resolution emphasized the importance of the public sector in key industries, with the government taking a leading role in strategic sectors such as defense, infrastructure, and heavy industries.
2. Role of private sector: While the public sector was prioritized in certain industries, the policy recognized the importance of the private sector in promoting entrepreneurship, innovation, and employment generation.
3. Licensing system: The resolution introduced a system of industrial licensing to regulate the establishment, expansion, and diversification of industries, aiming to ensure balanced industrial growth and prevent monopolies.
4. Import substitution: The policy advocated for import substitution by encouraging domestic production of goods to reduce reliance on imports and promote self-sufficiency.
5. Labour welfare: The resolution emphasized the need for promoting labor welfare, including provisions for fair wages, working conditions, and social security measures to protect workers’ rights.
6. Regional development: It emphasized the importance of balanced regional development by promoting industries in economically backward regions to reduce regional disparities and foster inclusive growth.
7. Infrastructure development: The policy highlighted the need for infrastructure development, including transportation, power, and communication networks, to support industrial growth and facilitate trade.
8. Technological advancement: The resolution encouraged the adoption of modern technology and innovation to enhance productivity, efficiency, and competitiveness in industrial sectors.

However, the extent to which the objectives of the 1956 Industrial Policy Resolution were achieved is subject to debate:

1. Mixed results: While the policy led to the establishment of public sector enterprises and contributed to industrial growth in certain sectors, it also resulted in inefficiencies, bureaucratic control, and lack of competitiveness in many industries.
2. Slow industrial growth: India’s industrial growth remained relatively slow during the initial decades following independence, with challenges such as red tape, corruption, and policy constraints hindering the pace of industrial development.
3. Limited private sector participation: The dominance of the public sector and the licensing system restricted the entry and expansion of private enterprises, limiting their contribution to industrial growth and innovation.
4. Inefficient public sector enterprises: Many public sector enterprises faced inefficiencies, low productivity, and financial losses due to factors such as political interference, lack of autonomy, and outdated technology.
5. Regional disparities: Despite efforts to promote regional development, regional disparities persisted, with industrial growth concentrated in certain regions while others remained underdeveloped.

Overall, while the 1956 Industrial Policy Resolution laid the groundwork for industrial development in India, its objectives were only partially achieved, and subsequent policy reforms were needed to address the challenges and shortcomings of the initial policy framework.