Classification of Industries in India According to the Industrial Policy of 1948
The government classified industries into four broad categories.
(a) Exclusive monopoly of the state:
The manufacture of arms and ammunition, production and control of atomic energy, ownership and management of railways transport were to be under state monopoly
(b) New undertakings to be established by the state:
The industries included in this category were coal, iron and steel, aircraft manufacture, shipbuilding, manufacture of telephones, telegraph and wire apparatus and mineral oils.
(c) Industries of such basic importance that the Central Government would, if necessary, plan and regulate but allow the private sector to operate and develop them:
The industries included in the category were automobiles, tractors, prime movers, electric engineering, heavy machinery, machine tools, heavy chemicals, fertilizers, non-ferrous metals, cotton and woollen textiles, cement, sugar and newsprint, air and sea transport etc.
(d) Remainder of the industrial field was left open to the private sectors:
Individuals as well as cooperative, the government announced that there would be no nationalisation for the next 10 years and in case of nationalisation, if considered necessary later, compensation would be paid.