Elaborate the reasons owing to which the private sector was regulated under the Industrial Policy Resolution, 1956. "During the colonial period the agricultural sector showed massive stagnation." Do you agree with the given statement ? Justify your answer with valid arguments.

Question

Accepted Answer

**Rationale behind regulating private sector under IPR 1956:**

1. **Control Economic Power:** To prevent concentration of economic power in few hands.

2. **Planned Development:** Government could direct industrial development according to national priorities.

3. **Regional Equality:** Licensing promoted establishment of industries in backward areas.

4. **Social Welfare:** State control ensured industries served social objectives.

**Agricultural Stagnation during Colonial Period:**
I **agree** that agricultural sector showed massive stagnation because:
- Zamindari system exploited farmers
- Commercialisation forced cash crop production
- Low productivity due to lack of technology
- No investment in agricultural infrastructure