Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 70 views

    Industrial Policies: Unit 3

    Uploaded by

    PRIYANK
    The document summarizes industrial policies in India before and after liberalization. Before liberalization, there were extensive restrictions including reserving many industries for the public sector, mandatory licenses for establishing or expanding private businesses, and restrictions on foreign capital and technology. The 1991 New Industrial Policy aimed to correct weaknesses by reducing the role of public sector, expanding privatization, delicensing industries, and liberalizing foreign investment policies. It also acknowledged integrating the Indian economy with the global economy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Industrial Policies: Unit 3

    Uploaded by

    PRIYANK
    70 views9 pages
    The document summarizes industrial policies in India before and after liberalization. Before liberalization, there were extensive restrictions including reserving many industries for the public sector, mandatory licenses for establishing or expanding private businesses, and restrictions on foreign capital and technology. The 1991 New Industrial Policy aimed to correct weaknesses by reducing the role of public sector, expanding privatization, delicensing industries, and liberalizing foreign investment policies. It also acknowledged integrating the Indian economy with the global economy.

    Original Description:

    Original Title

    Industrial Policies

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes industrial policies in India before and after liberalization. Before liberalization, there were extensive restrictions including reserving many industries for the public sector, mandatory licenses for establishing or expanding private businesses, and restrictions on foreign capital and technology. The 1991 New Industrial Policy aimed to correct weaknesses by reducing the role of public sector, expanding privatization, delicensing industries, and liberalizing foreign investment policies. It also acknowledged integrating the Indian economy with the global economy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    70 views9 pages

    Industrial Policies: Unit 3

    Uploaded by

    PRIYANK
    The document summarizes industrial policies in India before and after liberalization. Before liberalization, there were extensive restrictions including reserving many industries for the public sector, mandatory licenses for establishing or expanding private businesses, and restrictions on foreign capital and technology. The 1991 New Industrial Policy aimed to correct weaknesses by reducing the role of public sector, expanding privatization, delicensing industries, and liberalizing foreign investment policies. It also acknowledged integrating the Indian economy with the global economy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 9

    Industrial Policies

    Unit 3
    Industrial Policies before Liberalization
    Reservation of Industries
    1. Future development of most of the import

    industries was exclusively reserved for public


    sector
    2. Manufacturing of large number (over 850 units)

    of items was reserved for the small scale sector.


    Dominance of Public Sector
    Policy of government was to ensure that the
    public sector gained control over the
    commanding heights of the economy.
    The Industrial Policy Resolution of 1948
    established public sector monopoly /near
    monopoly in 9 industries.
    The Industrial Policy Resolution 1956 gave
    emphasis to the basic and heavy industries,
    further expanded substantially the role of
    public sector.
    Entry and Growth restrictions
    Entry and growth restriction were imposed in
    industries where private players were allowed
    to trade.
    A license was mandatory for
    o establishing new units with investment above
    specified limit.
    o Manufacturing new product
    o Expansion of current undertakings
    Large firms and Dominant undertakings had to
    take clearance from MRTP Act. In addition to
    the industrial license .
    Restriction on foreign capital and
    Technology
    The scope of Foreign Capital and Technology

    was limited.
    Wherever the foreign investment were allowed

    the ceiling was fixed to 40 % of total equity.


    Expansion was allowed in very few cases.

    FERA 1973 regulated the investment from India

    to abroad, and from abroad to inside of India.


    The New Industrial Policy
    The major objectives are as follows :
    1. To build on the gains already made.

    2. To correct the distortion or weakness that may


    have crept in.
    3. To maintain the sustained growth in the
    productivity and gain full employment.
    4. To attain international competitiveness.
    Redefinition of role of Public sector
    Industries reserved for public sector was reduced to 8

    and further it reduced to only 2.


    Selective privatization and withdrawal of public

    sector from specific industries.


    Expansion of privatization and dismantling of entry

    and growth restrictions


    Removal of MRTP Restrictions
    Delicensing :18 industries were freed from
    licensing , this was later reduced to 6 industries
    Liberalization of foreign investment :policy
    towards investment and technology restrictions
    were scrapped . FDI were allowed in certain
    industries with a range from 26% investment
    to 100% investment.
    By 1992-93 indian stock market was open for
    investment by FIIs
    Related measures
    Progressive integration of Indian Economy
    with global economy has been
    acknowledged as one of the objectives of
    EXIM policy.

    You might also like