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The first industrial policy was announced by the government of India on April 6, 1948. In this policy both the public and private sectors were involved towards industrial development. Accordingly, the industries were classified into four broad categories:
1. Exclusive State Monopoly: This includes the manufacturing of arms and ammunition; production and control of atomic energy; and the ownership and management of railways.
2. State Monopoly for New Units: This category included coal, iron and steel, aircraft manufacturing, ship-building, manufacturing of telephone, telegraph and wireless apparatus (excluding radio receiving sets), and mineral oil. New undertakings in this category could, henceforth, be undertaken only by the state.
3. State Regulation: This category included industries of such basic importance like machine tools, chemicals, fertilisers, non-ferrous metals, rubber manufactures, cement, paper, newsprint, automobiles, electric engineering, etc. which the central government would feel necessary to plan and regulate.
4. Unregulated Private Enterprise: The industries in this category were left open to the private sector, individual as well as co operative.