Question

mention three reform each of industrialisation sectaor and financial sector introduced under new economic policy​

Answer 1

Answer:

industrial reforms :->

- abolition of industrial licensing :-> prior to the policy license is required for establishment of new industries in private sector. but after introduction of policy no more license is required

- removal of capacity constraints :-> prior to the policy the inducement in capacity also relied on the licensing but introduction of policy led the firm to take their own decisions regarding production without consulting others.

- freedom to import capital goods :-> under industrial reforms this decisions benefited the producers because they are now given freedom to import capital goods and enjoy the benefits of advanced technology.

financial reforms :->

- free determination of interest rate :-> determination of interest rate was decided by central bank but introduction of policy led the interest rate relied upon market forces.

- change in role of R. B. I :-> this policy changed the role of R. B. I from regulator to favcilitator.

- foreign investment :-> this policy introduced FII (foreign insititutional investments) to invest in Indian market.