InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
Why and how was private sector regulated under the IPR1956? |
|
Answer» Under IPR 1956 the private 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 to promote 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. The purpose of this policy was to promote regional equality. Even an existing industry had to obtain a license for expanding output or far diversifying production. This was meant to ensure that the quantity of goods produced was not more than what the economy required |
|