Explain the Main Features of New Industrial Policy.
(i) Decreasing Role of Public Sector : In the new industrial policy only four industries are reserved for public sector. They are defence equipment, atomic energy, mining, minerals and railway transport.
(ii) Expansion of Private Sector : In New Industrial Policy, the role of public sector is reduced and the private sector is allowed to increase capacity. As a result of expansion of privatisation, productivity and efficiency are likely to increase.
(iii) Liberalisation : In new industrial policy, liberalisation policy has been adopted in place of controlled economy. Except six industries, all other kinds of industrial licenses have been abolished. Producers are now free to decide what goods are to be produced, on the basis of market demand.
(iv) Concessions from Monopolies Act : Companies included in Monopolies Act have been given large scale concessions. In respect of MRTP Companies, the capital investment limit, fixed earlier, has been removed.
(v) Foreign Direct Investment : Foreign direct investment limit has been increased from 40 percent to 51 percent.
(vi) Foreign Technology Agreement : In the new industrial policy high priority industries need not seek approval to enter into foreign technology agreement.