Explain IPR-1956? And features?
Answers
Fair and non-discriminatory treatment for the private sector, encouragement to village and small-scale enterprises, removing regional disparities, and the need for the provision of amenities for labor, and attitude to foreign capital were other salient features of the IPR 1956.
The main features of this Industrial Policy Resolution of 1956 were as follows:
New Classification of industries:
The Industrial Policy of 1956 adopted the classification of industries into three categories viz.,
(i) Schedule A industries, (ii) Schedule В industries, and (iii) Schedule С industries according to the degree of state ownership and participation in their development.
Assistance to Private Sector:
While the Industrial Policy of 1956 sought to give a dominant role to public sector, at the same time it assured a fair treatment to the private sector. The ‘policy’ said that the state would continue to strengthen and expand financial institutions that extend financial assistance to private industry and cooperative enterprises. The state would also strengthen infrastructure (power, transport etc.) to help private sector.
Expanded role of Cottage and Small-Scale Industries:
The Industrial Policy of 1956 laid stress on the role of cottage and small scale industries for generating larger employment opportunities, making use of local manpower and resources and reducing- regional inequalities in industrial development. It stated that the Government would continue pursuing a policy of supporting such industries through tax concessions and subsidies.
Balanced Industrial Growth among Various Regions:
The Industrial Policy, 1956 helped to reduce regional disparities in industrial development. The policy stated that facilities for development will be made available to industrially backward areas. The state, apart from setting up more public sector industries in these backward areas, will provide incentives such as tax concessions, subsidized loans etc., to the private sector to start industries in these backward regions.
Role of Foreign Capital:
The industrial Policy 1956 recognised the important role of foreign capital in country’s development. The foreign capital supplements domestic savings. Provides more resources for investment and relieves pressure on Balance of payments.
The country therefore welcomed inflow of foreign capital. But the ‘Policy’ made it clear that inflow of foreign capital will be permitted subject to the condition that major share in management, ownership and control should be in the hands of Indians.
Development of managerial and Technical Cadres:
The Industrial Policy, 1956 notes that the programme of rapid industrialisation in India will create large demand for managerial and technical personnel. Therefore, the policy emphasised the setting up and strengthening of institutions that Trans and provide such personnel. It was also announced that proper technical and managerial cadres in the public services are also being established.
Incentives to labour:
The Industrial Policy, 1956 recognised the important role of labour as a partner in the task of development. The ‘policy’ therefore put emphasis on the provision of adequate incentives to workers and improvement in their working and service conditions. It laid down that wherever possible the workers should be progressively associated with that management so that they are enthusiastically involved in the development process.