What are the main features of economic reforms?
Answers
(i) All other industries, excepting 18 industries, are delicensed and allowed to set up and sell shares without any restriction;
(ii) Industries are allowed to expand their capacity freely as per the needs of the market;
(iii) Producers are allowed to produce any commodity or diversify their output as per the demand in the market;
PRIVATISATION: selling of management , ownership of PSUs to private sector or majority shares of government sale to pvt. sector.
(i) Reducing the number of industries reserved for the public sector from 17 to 8;
(ii) Raising the share of private sector to total investment to 55 per cent at the end of Eighth Plan;
(iii) Selling the government equity holdings of public sector enterprises among the workers and public for greater participation of private individuals;
GLOBALISATION: linking of one economy with the world economy by exporting good and services , technology.
i) The New Economic Policy (1991) has prepared a specified list of high technology and high investment priority industries (Annexure III) in which automatic permission will be available for foreign direct investment up to 51 per cent of foreign equity.
(ii) In respect of foreign technology agreements, automatic permission is provided in high priority industry up to a sum of Rs. 1 crore. No permission is now required for hiring foreign technicians or for testing indigenously developed technology abroad.