3. Identify the impact of change in Industrial policy on business and industry- (a) With globalization many MNCs have established their efforts in India. (b) Employees require continuous on the job training to be able to handle technological changes. (c) Companies producing electronic products have to constantly invest in research and development to update their products, (d) Companies before launch of their products distribute free samples to consumers' feedback. (e) Nokia phones had to change their technology from Symbian to Android to meet market demand
Answers
Explanation:
New Economic Policy, 1991 For achieving the objectives of development plans, the government resorted to an inward looking trade policy. Due to this, in 1991, the economy faced a serious foreign exchange crisis, high government deficit and rising trend of prices. As a result, the government decided to announce the New Industrial Policy, aiming at liberalisation, privatisation and globalisation of the Indian economy.
2. Privatisation It means giving greater role to the private sector in the national building process and at the same time drastically reducing the role of public sector. To achieve this, as per the New Industrial Policy, 1991, it adopted ‘disinvestment’, which means transfer of public sector enterprises to the private sector by way of dilution of government stake in public sector beyond 51%.