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Industrial Policy 1991

Industrial Policy 1991

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Published by Pankaj Dogra

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Published by: Pankaj Dogra on May 01, 2010
Copyright:Attribution Non-commercial


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Industrial Policy
Presented by:-Pankaj Dogra21-MBA-09
 The New Industrial Policy 1991
The Industrial Policy announced on July 24, 1991 heralded the economicreforms in India and sought to drastically alter the industrial scenario inour country. The most visible sign of the country¶s economic crisis inearly 1991 was:
tremely low foreign e
change reserves of Rs. 2400 crore (justenough to buy from abroad only three weeks requirements.)
Inflation was as high as 13.5%This policy e
panded the scope of the private sector by opening upmost of the industries for the private sector and did away with the entryand growth restrictions. The most important initiatives are with respectto the virtual scrapping of industrial licensing and registration policies,an end to the monopoly law and a welcoming approach to foreigninvestments.
 The New Industrial Policy 1991 (contd«)
bjectives of the Industrial Policy of the Government are ±
to maintain a sustained growth in productivity;
to enhance employment;
to achieve optimal utilization of human resources;
to attain international competitiveness
Development of indigenous technology through greater investmentin R&D and bring in new technology to help Indian manufacturingunits Incentive for industrialization of backward areas
nsure running of PSUs on business lines and cut their losses
Protect the interests of workers
Abolish the monopoly of any sector in any field of manufacturee
cept on strategic or security grounds.
to transform India into a major partner and player in the globalarena.

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