Why and how was private sector regulated under the IPR 1956?


The  Industrial Policy Resolution(IPR)1956 was adopted in order to achieve the aim of a socialist state with the government controlling the major strategic industries of the economy. Industries were classified into three categories under IPR. 

Category 1: Those industries which are owned and started by the public sector 

Category 2: Those industries where the public sector played the primary role while the Private sector played secondary role.

Category 3: Those industries which did not lie in both category 1 and category 2. These industries were left for the private sector. The government indirectly controlled these industries.

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