Explanation: The government was encouraged by the impact of the industrial policy of 1948 and it was only after eight years that the new and more crystallized policies were announced for the Indian industries. The new industrial policy of 1956 had the following major provisions.

• One of the most important developments of independent India, the provision of compulsory licensing for industries, was cemented in this policy.
• All the schedule B industries and a number of schedule C industries came under this provision. This provision established the so-called ‘License-Quota-Permit’ regime (raj) in the economy.

Source: Ramesh Singh