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The Industrial Policy announced on July 24, 1991 heralded the economic
reforms in India and sought to drastically alter the industrial scenario in
our country. The most visible sign of the country¶s economic crisis in
early 1991 was:
ô tremely low foreign e change reserves of Rs. 2400 crore (just
enough to buy from abroad only three weeks requirements.)
ô Inflation was as high as 13.5%
9 9
9
:
ô Most of the MRTP restrictions pertaining to concentration of
economic power (those requiring permission for establishment of
new undertaking, substantial e pansion, manufacture of new items
and mergers and acquisitions) were scrapped.
ô The thrust of the policy is on controlling and regulating monopolistic,
restrictive and unfair trade practices.
Positives of the new policy are:
ô De-licensing of most industries will help entrepreneurs to quickly
seize business opportunities.
ô Removal of controls under the MRTP Act will facilitate e pansion
and growth.
ô There will be greater inflow of foreign capital and technology due to
easing of restrictions.
Watch- outs :
ô However, de-bureaucratization is a challenging task. The
bureaucracy has a tendency to attempt to defeat measures aimed at
deregulations.
ô Further, foreign investors still regard the policy and procedural
system in India confusing. Rather many feel that policy and
development environment in China is superior to India.
This Policy has been criticized on the following grounds:
. Human Development
Ô Primary education to be made compulsory.
Ô Involve private sector to provide better primary education.
F. Clean nvironment:
Ô Arrest damage to environment
Ô Promote clean and healthy environment.
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Thank
You.