What are the good effects of Industrial Policy Resolution 1956?

According to this resolution the objective of the social and economic policy in India was the establishment of a socialistic pattern of society. It provided more powers to the governmental machinery. It laid down three categories of industries which were more sharply defined.

What was the purpose of Industrial Policy Resolution 1956?

Industrial Policy Resolution – 1956: It was shaped by the Mahalanobis Model of growth. It suggested that emphasis on heavy industries would lead the economy towards a long-term higher growth path. This was aimed towards laying the foundation of regional equality.

What are the advantages of industrial policy 1991?

(i) The new policy liberalises the industrial sector from unnecessary control and regulation. (ii) The new policy accelerates industrial growth. (iii) The new policy accelerates industrial production. (iv) The new policy provides an opportunities to the domestic industries to capture the world market.

What are 3 advantages of industrialization?

Advantages of industrialization:

  • Industrialization brought us the current import-export market.
  • It allows us to become more productive.
  • Industrialization makes goods and services more affordable.
  • It improves the quality of life for each person and household.
  • Industrialization enhanced our medical care.

What are the advantages and disadvantages of industrialization?

What are the advantages of Industrialization?

  • Affordability.
  • Industrial Inventions save time and investments.
  • Enhanced Healthcare Services.
  • Employment is one of the main advantages of Industrialization.
  • Increased GDP.
  • Overcrowded Cities.
  • Pollution is one of the major disadvantages of Industrialization.
  • Poor Working Conditions.

What are the major reforms of industrial policy 1956?

The 1956 Policy emphasised the need to expand the public sector, to build up a large and growing cooperative sector and to encourage the separation of ownership and management in private industries and, above all, prevent the rise of private monopolies.

Which of the following was an extension of the Industrial Policy Resolution of 1956?

Industrial Policy Statement, 1977 This policy was an extension of the 1956 policy. The main was employment to the poor and reduction in the concentration of wealth. This policy imposed restrictions on Multinational Companies (MNC).

How does industrial policy impact on the economy and industry?

In addition, by using a set of means, such as credit, taxation, subsidies and entry threshold reduction, industrial policy can decrease market failures caused by factors such as externalities and imperfect market mechanism, improve resource allocation efficiency and promote industrial development (Wei et al. 2018).