With reference to the Industrial Policy Statement of 1973, consider the following statements: 1. The policy introduced the classification of core industries, which later came to be known as basic or infrastructure industries. 2. The concept of joint sector industries was introduced, allowing partnerships between the Centre, State, and private sector. 3. The policy fully liberalised foreign investment and removed restrictions on multinational corporations (MNCs). Which of the statements given above is/are correct? |ForumIAS

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: A

Notes:

Explanation:

The 1973 policy introduced the term “core industries”, which included key sectors like steel, coal, crude oil, etc., and these later came to be known as basic/infrastructure industries.
The joint sector concept was introduced to promote industrial units through partnerships between Centre, State, and private players, with the government having the option to exit in the future.
While the policy allowed limited foreign investment and permitted MNC subsidiaries, it did not fully liberalise foreign investment. In fact, the FERA Act (1973) placed strict controls on foreign exchange and investment, hampering industrial growth.

Source- 11th NCERT: Economics: Indian Economic Development and TMH Indian Economy by Ramesh Singh

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