Discuss the salient features of the Industrial Policy Resolution 1956 throwing light on its outcomes.

Hint:
The Industrial Policy Resolution of 1956 was based upon the Mahalanobis Model of growth, which laid emphasis on the heavy industries.It classified industries into threefold in Schedule A, B and C industries.

• Schedule A Industries -strictly under the Central Government
• Schedule B Industries-were put under the State Governments
• Schedule C Industries-left with the private sectors

Outcomes
Under industrial policy 1956, scope of public sector got widened and with compulsory licensing for schedule B & C industries central government had good control over private sector and state government. Also; the policy welcomed FDI and gave priority to industrial development in the backward regions.