Why and how was private sector regulated under the IPR1956?
Under IPR 1956, the private sector was kept under state control through a system of licenses. No new industry was allowed unless a license was obtained from the government. Even an existing industry had to obtain a license for expanding output or for diversifying production.
The objective behind regulating the private sector through licenses was to promote equitable development as the country. It was easier to obtain a license if the industrial unit was to be established in backward areas.