Changes in industrial policy and its effects on industrial growth
Answers
Answer:
A lower cost of capital enables companies to undertake lucrative projects that they may not have been able to with a higher cost of capital pre-liberalization, leading to higher growth rates. Stock Market Performance: Another factor is stock market performance.The industrialisation is not only helpful in the development of industries but it also promotes agriculture, trade, transport, foreign trade, services and social sectors of the economy. It increases employment opportunities, national income, per capita income and living standard of the populace
Explanation:
New Industrial Policy During Economic Reforms of 1991 The long-awaited liberalised industrial policy was announced by the Government of India in 1991 in the midst of severe economic instability in the country. The objective of the policy was to raise efficiency and accelerate economic growth.