8/18/2019 new industrial policy.doc

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Question:

What are broad features of new industrial policy 1991 ?

Answer

 The broad features of this new industrial policy in July 1991 were as follows:

(a) Delicencing: The Government reduced the number of industries undercompulsory licensing to six

(b) Dereservation:  !any of the industries reserved for the public sector under

the earlier policy" were dereserved The role of the public sector was limited only

to four industries of strategic importance

(c) Disinvestment: #isinvestment was carried out in case of many public

sector industrial enterprises

(d) iberalised !oreign "apital #olicy: $olicy towards foreign capital was

liberalised The share of foreign e%uity participation was increased and in manyactivities 1&& per cent 'oreign #irect nvestment ('#) was permitted

(e) Automatic permission was now granted for technology agreements with

foreign companies

(f) !oreign $nvestment #romotion %oard &!$#%) was set up to promote and

channelie foreign

nvestment in ndia