What was the impact of the new Industrial Policy on Indian industries?
Answers
Explanation:
The 1991 policy made ‘Licence, Permit and Quota Raj’ a thing of the past. It attempted to liberalise the economy by removing bureaucratic hurdles in industrial growth.
Limited role of Public sector reduced the burden of the Government.
The policy provided easier entry of multinational companies, privatisation, removal of asset limit on MRTP companies, liberal licensing.
All this resulted in increased competition, that led to lower prices in many goods such as electronics prices. This brought domestic as well as foreign investment in almost every sector opened to private sector.
The policy was followed by special efforts to increase exports. Concepts like Export Oriented Units, Export Processing Zones, Agri-Export Zones, Special Economic Zones and lately National Investment and Manufacturing Zones emerged. All these have benefitted the export sector of the country.