INDUSTRIAL POLICY 1991 ISSUES : INDUSTRIAL POLICY 1991 ISSUES Govt . recognizes the need for
social and economic justice, to end poverty and unemployment and to build a modern, democratic, socialist, prosperous and forward-looking India
India to grow as part of the world economy and not in isolation
Government will provide enhanced support to the small-scale sector so that it flourishes in an environment of economic efficiency and continuous technological up gradation
INDUSTRIAL POLICY 1991 : INDUSTRIAL POLICY 1991 The spread of industrialization to backward areas of the country will be actively promotedthrough appropriate incentives, institutions andinfrastructure investments.
Foreign investment and technology collaboration will be welcomed to obtain highertechnology, to increase exports and to expand the production base.
progress and prosperity
Workers’ participation in management will be promoted
INDUSTRIAL POLICY 1991 OBJECTIVES : INDUSTRIAL POLICY 1991 OBJECTIVES In pursuit of the above objectives, Governmenthave decided to take a series of initiatives in respect of the policies relating to the following areas.A. Industrial Licensing.B. Foreign Investment.C. Foreign Technology Agreements.D. Public Sector Policy.E. MRTP Act.
INDUSTRIAL POLICY 1991 : INDUSTRIAL POLICY 1991 Industrial licensing:
Modified industrial licensing policy to ease restrictions on capacity creation, respond to emerging domestic & global opportunities by improving productivity
Abolished industrial licensing for most industries but for 18 categories
Small scale sector reserved
FDI (up to 51% foreign equity) permitted in high priority industries & export oriented companies
INDUSTRIAL POLICY 1991 : INDUSTRIAL POLICY 1991 Foreign Technology Agreements:
Towards technological dynamism, automatic approval for technological agreements related to high priority industries; eased procedures for hiring foreign technical expertise
Public Sector Policy:
Restructuring pubic sector units, raise resources through pubic participation PSUs, refer sick units to Board of Industrial & Financial Reconstruction
MRTP Act: (Monopolistic Restrictive Trade Practices)
Abolished scrutiny of investment decision of MRTP companies etc.
Lessons from India: : Lessons from India: Industrial Policy should not be about:
Specifying Geographical Location of Activity
Preemption by Public Sector
Thank You….. : Thank You…..