WBCS.LIVE practice question

Which among the following Industrial Policy Resolution/Statement was based upon the Mahalanobis Model of growth?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Industrial Policy Resolution- 1956.
  2. Industry Policy Statement- 1973.
  3. Industrial Policy Statement- 1977.
  4. None of the above.

Correct answer and explanation

Correct answer: Industrial Policy Resolution- 1956.

Explanation: The Industrial Policy Resolution of 1956 was framed in line with the Second Five-Year Plan, which adopted the Mahalanobis Model of growth. This model emphasised rapid industrialisation through the development of heavy industries and capital goods sector, assuming that long-term growth depended on building strong industrial capacity. Accordingly, the 1956 resolution strengthened the public sector’s role, classified industries into three categories (exclusive for state, jointly with private, and private with regulation), and became the economic policy framework till 1991.