IPR 1956

National consensus rapid industrialization of the economy

Building on the Bombay plan ,IPR 1948


Constitution(jan,1950),planning commission(march 1950)
And Industrial (D & R)-1951

IPR 1956, was the first comprehensive statement for
industrial development in India
Shaped on mahalanobis model
Objective : To accelerate the economic growth and speed
up industrialization to achieve socialistic pattern
Removal of industrial disparities
Assistance to all small and cottage industries
Equitable distribution of income


an important distinction was made industries
Of empowering to regulate pattern of ID through Licensing
New Classification of Industries
Schedule A: Those industries which were exclusive responsibility
of center (17 Industries)
Arms and ammunition , atomic energy, iron and steel heavy casting and
forgings of iron and steel, heavy machinery required for iron an steel production, for
mining , for machine tools, manufacturing etc., heavy electrical industries, coal,
minerals oil, mining: iron ore and other important minerals like cooper, lead and zinc,
aircraft, air transport, railways, ship building, telephone, telegraph and wireless
equipment, generation and distribution of electricity.


o Schedule B: Those industries which were to be progressively
State owned and in which the State would generally set up
new enterprises, but in which private enterprises would be
expected only to supplement the efforts of Sate: (12
Industries)
Other mining industries, aluminium and other non-ferrous metals not
included in schedule A, machine tools, Ferro-alloys and tools steel, the chemical
industry, antibiotics and other essential drugs, fertilizers, synthetic rubber,
carbonization of coal chemical pulp road transport and sea transport
Schedule C : The Industrial areas which were left out of the
Schedule A & B were left with the private sectors with provisions of
licensing and subject to regulation under the IDR Act

IPR 1956 Most Important Outcomes
Scope of Public Sector got widen
Aim to achieve socialistic pattern of growth was reiterated
Clear cut classification of industries
All industries with basic and strategic importance , nature
of public utility of service and large scale investment came
under government sector
Compulsory licensing

IPR 1956 Salient Features
New classification of industries

-Monopoly of the State
-Mixed sector of public and private enterprise
-Industries left for private sector

Mutual dependence of public and private sectors

Assistant and control of private sector

Encouragement of Small scale and Cottage industries

Reduction of Regional disparities

Development of technical and managerial personal

Industrial Peace

Restrictive Attitude towards foreign capital