As said earlier, the Government of India, recognized the importance of industries, therefore the Government declared the Industrial Policy 1948 on 6th April 1948.
The importance of the 1948 industrial policy was it ushered the policy of a system ofmixed economy in India.
Industrial Policy 1948
The Industries were classified into four groups.
Public Sectors (Strategic Industries)
Public-Cum-Private Sector (Key Industries)
Controlled Private Sector
Private and Co-Operative Sectors.
The Industrial Policy 1948, endeavoured to protect cottage and small scale industries.
The Central and State Governments had a virtual monopoly in railroads and exclusive rights to develop minerals, irons ore etc.
The Union Government encouraged the significance of foreign capital for Industrialization, but the control should remain with Indian hands.
