Industrial Policy 1948
The Government of india announced its Industrial Policy Resolution on April 6, 1948 whereby both public and private sectors were involved towards industrial development. Accordingly, the industries were divided into four broad categories.
a. Exclusive State Monopoly: This includes the manufacture of arms and ammunition, production and control of atomic energy and the ownership and management of railway transport. These industries were the exclusive monopoly of the central government.
b. State Monopoly for New Units: This category includes coal iron and steel, aircraft manufacture, ship building, manufacture of telephone, telegraphs and wireless apparatus (excluding radio receiving sets) and mineral oils. New undertakings in this category could henceforth be undertaken only by the state.
c. State Regulation: This category included industries of such basic importance like machine tools, chemicals, fertilizers, non-ferrous metals, rubber manufactures, cement, paper, newsprint automobiles, electric engineering etc, which the central government would feel necessary to plan and regulate.
d. Unregulated Private Enterprise: The industries in this category were left open to the private sector, individuals as well as to co-operatives.
Industrial Policy 1948 was the first industrial policy statement of India. It decided the model of economic system of India as mixed economy. There was a period of 10 years for review of the policy.