State the main objectives and features of new Industrial policy of 1991.
The Main objectives of the New Industrial Policy of 1991 are:
- To introduce an economic system free of excessive regulatory norms and bureaucratic controls.
- To liberalize Indian economy and work towards globalization.
- To relax foreign direct investment norms.
- To take away restrictions on investments by business and industrial firms, under the Monopolistic and Restrictive Trade Practices (MRTP) Act.
To opens areas otherwise reserved exclusively for public sector participation for private and foreign participation. This was driven by the fact that several public sector enterprises were either incurring losses year after year and had very low rate of return.
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The main features of New Economic Policy are as follows:
The policy emphasized the role of public sector in establishment of heavy and basic industries was stressed.
Role of state (via public sector) was emphasized for development of infrastructure projects, roads, irrigation dams, power projects, communication systems was stressed in the policy.
The need for expansion/development of social infrastructure projects (schools, colleges, technical and engineering institutions, universities) and medical facilities (primary health centers, hospitals, medical institutions for doctoral training, nurse and support staff training) was emphasized.
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