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Doctors Medicines MCQs Q&A

Consider the following statements. (a) The purpose of Industrial Policy Resolution 1956 was to promote regional equality. (b) In 1955 the Village and Small Scale Industries Committee also called the Karve Committee. (c) In a small-scale industrial unit maximum investment allowed is rupees ten crore. Which of the statement/s given above is/are correct?

Consider the following statements. (a) The purpose of Industrial Policy Resolution 1956 was to promote regional equality. (b) In 1955 the Village and Small Scale Industries Committee also called the Karve Committee. (c) In a small-scale industrial unit maximum investment allowed is rupees ten crore. Which of the statement/s given above is/are correct? Correct Answer (a) and (b)

The correct answer is (a) and (b).

Key Points

  • Industrial Policy resolution 1956
    • In accordance with the goal of the state controlling the commanding heights of the economy, the Industrial Policy Resolution of 1956 was adopted.
    • The purpose of this policy was to promote regional equality. (Statement a is correct).
    • This resolution formed the basis of the Second Five Year Plan, the plan which tried to build the basis for a socialist pattern of society. 
    • Although there was a category of industries left to the private sector, the sector was kept under state control through a system of licenses.
    • No new industry was allowed unless a license was obtained from the government. 
    • This policy was used for promoting industry in backward regions; it was easier to obtain a license if the industrial unit was established in an economically backward area. In addition, such units were given certain concessions such as tax benefits and electricity at a lower tariff.​
  • In 1955, the Village and Small-scale Industries Committee, also called the Karve Committee, noted the possibility of using small-scale industries for promoting rural development. (Statement b is correct)
  • A ‘small-scale industry’ is defined as the maximum investment allowed on the assets of a unit. In 1950 a small-scale industrial unit was one which invested a maximum of rupees five lakhs.  (Statement c is incorrect)

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