Professional Documents
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Industrial Policy
Rules, Regulations, Principles, Policies and procedures laid down by govt. for regulating& controlling industrial undertakings in the country Prescribes the resp. role of the public, private, joint, co-operative large, medium and small scale sectors for the development of industries
Objectives of IIP
To maintain a sustained growth in productivity To enhance gainful employment To prevent undue concentration of economic power To achieve optimal utilization of human resources To attain international competitiveness and To transform India into a major partner and player in the global arena
Industrial Licencing
De-licencing De-control De-regulation Broad banding Abolition of Registration
Industrial Licencing
Industrial Licensing was governed by the Industries Development & Regulation Act, 1951. Industrial Licensing policy and procedures have been liberalized and continuously changed. Industrial licensing has been abolished for all projects except for a short list of industries All excepting 18 industries were freed from licensing. The number was later reduced to five. Distillation and brewing of alcoholic drinks; cigars and cigarettes; electronic aerospace; hazardous chemicals and industrial explosives
FERA Liberalization
Liberalization of Foreign Investment
Allowed in all industries, except falling in a small negative list
FERA Liberalization
Pre 1991
FDI was allowed selectively up to 40% under FERA
1991
35 high priority industry groups were placed on the Automatic Route for FDI up to 51%
1997
Automatic Route expanded to 111 high priority industry groups up to 100%/ 74%/ 51%/50%
2000
All sectors placed on the Automatic Route for FDI except for a small negative list
Post 200
Many new sectors opened to FDI; Sectorial caps in many other sectors relaxed;
MRTP Liberalization
Abolition of threshold assets limit No MRTP clearance needed for expansions, mergers
Objectives: MRTP
Prevention of concentration of economic power in a few hands Control and regulation of monopolies in certain sectors Prevention of unfair trade practices Prevention of restrictive trade practices
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