Objectives of the Industrial Policy Revolution, 1956

The objective of the policies, according to the revolution was the establishment of the society’s socialistic pattern. Other than this, some of the major objectives of this policy were:

1. Rapid Development of Industries

The main aim of the industrial policy was to increase the speed of the development of industries in India. The government promoted industrial development in the country by creating a favourable investment atmosphere for the private sector enterprises and mobilising the resources for investment in the public sector enterprises.

2. Preventing the Concentration of Economic Powers

The industrial policy provided a framework of reservations, rules, and regulations for the public and the private sectors that aimed at lowering monopolistic tendencies. It also aimed at preventing economic powers from getting concentrated in the hands of a few big industrial houses. 

3. Balance of the Industrial Sector

The industrial policy was taken into action to correct the industrial structure imbalances so that the currently prevailing conditions of the industrial sector get balanced out. This was done by laying the emphasis on heavy industries and developing the sector of capital goods.

4. Balance of the Regional Sector

The aim behind the introduction of industrial policies was also to correct the regional imbalances in industrial development between states. The states like Maharashtra, Gujarat, etc., were considered to be advanced in terms of industrial development, while other states like Bihar, Orissa, etc., were considered to be industrially backward. Thus, the industrial policy took the initiative of launching programs and policies, which led to the development of industries in such states.

5. Incentives to Labours

The industrial policy recognised the role of labour in the development of the industrial sector. This emphasized improving the working conditions of the workers and providing adequate incentives to them. It was also stated that the workers should be associated with the management so that they can be enthusiastically involved in the development process.

A comprehensive package of different policy measures covering various issues that are connected with different industrial enterprises of the country is known as Industrial Policy. The country needs to devise various principles, procedures, rules, and regulations to control its industrial enterprise. 

After the Industrial Policy of 1948, the economy of India faced various economic and political changes because of which it became essential for the country to start a fresh industrial policy. Hence, the Industrial Policy Revolution of 1956 was taken into action by the Indian Parliament on 30^th April 1956. It is also known as ‘The Economic Constitution’ of India. The Industrial Policy was shaped by the Mahalanobis Model of growth, which suggested that emphasis on heavy industries would lead the economy towards a long-term higher growth path. It provided a comprehensive framework for the industrial development of the country. It aimed at improving the coordination between the public and the private sector to achieve the goal of rapid industrial development by working together. This revolution provided more powers to the governmental machinery and laid down the foundation for India’s second five-year plan. The Industrial Policy also helped in laying down the three categories of the industrial sector that helped in defining industries more sharply.