The 1956 IPR divided the industries into three categories:
- Exclusive Monopoly of the State
This category included 17 industries divided into two sub-categories.
a)Â Â Â Four industries namely production of defence equipments, generation of atomic energy, railway transport and air transport were to be exclusive monopoly of the state.
b)Â Â Â In respect of the remaining 13 industries namely, Iron and Steel, Heavy Machinery, Coal, Heavy Electrical Equipments, Ship Building etc, new units would be setup by the state but the existing units in the private sector would be allowed to be continued in private hands. Besides the government may take the co-operation of the private sector to develop the industries in this sector.
- State Initiative
This category included 12 industries such as minerals not mentioned in the 1st category, road transport, sea transport, machine tools, drugs, plastics, antibiotics etc. In these industries the state would increasingly establish new units but the state may invite the private sector to supplement its efforts if necessary.
- Private Sector
All the remaining industries were left in the 3rd category. The private sector was free to develop it but if the private sector failed to develop any of the remaining industries the government may take it up and develop it.
Thus the 1956 resolution strengthened the public sector. Almost 29 industries were now taken over by the public sector in its jurisdiction.
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