- Objectives:
- Accepted socialist pattern of society as economic policy objective.
- Widened the scope of the public sector.
- Reserved seventeen industries exclusively for the public sector.
- Industries like iron and steel, mining, machine tools were considered basic.
- Aimed to strengthen the foundation of economic independence.
- Outcomes:
- Led to a massive, inefficient, and monopolistic public sector.
- Overregulated private enterprises through licensing system (License Raj).
- Discouraged foreign capital and competition.
- Did not deliver social justice and welfare effectively.
- Resulted in inefficiencies and structural problems in the economy.