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Liberalisation, Privatisation And Globalisation : An Appraisal

Question
CBSEENEC11008905
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Explain the Main Features of New Industrial Policy.

Solution

(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.

Some More Questions From Liberalisation, Privatisation And Globalisation : An Appraisal Chapter

Why was the rate of growth of private sector industries slow before 1991?

What were the reasons behind incompetence of many Indian products and industries before 1991?

Before 1991 why did India face a serious balance of payment problem?

What was the main objective of delicensing?

Before 1991, MRTP Act inhibited the growth of industries. How?

State the steps taken by the government towards liberalisation under the New Economic Policy.

What is the meaning of disinvestment of Public Sector Units?

What does foreign direct investinent mean?

What does fiscal deficit indicate?

How did the government promote exports before 1991?

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