Illustrate Economic Reforms
What do you mean by the term Economic Reforms?
Expert
In 1991, as a part of Economic reforms, the Government of India declares new Industrial Policy, their important features are as follows:
1. Under licencing scheme, only 6 industries were kept.
2. Only to 4 industries the role of public sector was limited.
3. In many public sector enterprises, disinvestment was carried out.
4. In various sectors 100% direct foreign investment was permitted and also foreign capital/investment policy was liberalised.
5. With foreign companies, automatic permission was given for signing technology agreements.
6. FIPB (Foreign investment promotion board) was setup to promote and bring foreign investment in India.
Clarify the impact of government policy?
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