What was the objective of Licensing Policy in India?

Solution

The aim of Licensing Policy was to keep the private sector under control. No new industry was allowed unless a license was obtained from the government. This policy was used for promoting industries in backward regions. Even an existing industry had to obtain a license for expanding output or for diversifying production. For producing a new commodity the license was compulsory. This was to ensure that the quantity of goods produced was not more than what the economy required. License to expand production was given only if the government was convinced that the economy required the larger quantity of goods.

Some More Questions From Indian Economy 1950-1990 Chapter

For Daily Free Study Material Join wiredfaculty

Indian Economy 1950-1990

What was the objective of Licensing Policy in India?

Some More Questions From Indian Economy 1950-1990 Chapter

Who floated the idea of planning in India first of all?

How many plans have been completed in India so far?

Define capitalist economy.

What is a socialist economy?

What is mixed economy?

What is meant by economic growth?

What structural change undergoes with development of the economy?

Name the sectors from which the GDP of a country is derived.

On which idea is the policy of 'land to tiller' is based?

Where is the provision for economic and social planning in our Constitution?

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

Phone Number

Email Address

Location