Major Industries — Policy Changes

Entry	Year	Description	Impact
Industrial Policy Resolution	1956	India's Industrial Policy Resolution of 1956 established the framework for industrial development with public sector dominance in heavy industries, private sector participation in consumer goods, and joint sector for strategic industries. This policy shaped India's industrial geography by concentrating heavy industries in public sector undertakings.	Created industrial townships like Bhilai, Rourkela, and Durgapur for steel production, established public sector dominance in core industries, and influenced regional industrial development patterns across India for several decades.
New Industrial Policy	1991	The liberalization policy dismantled the License Raj system, reduced public sector reservation, allowed foreign direct investment, and promoted private sector participation in industrial development. This marked a shift from state-controlled to market-driven industrial location decisions.	Transformed India's industrial geography by enabling private sector growth, attracting foreign investment in automobile and IT sectors, promoting export-oriented industries, and creating new industrial clusters in states like Karnataka, Tamil Nadu, and Gujarat.

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