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.