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Came to power again in 1980 the union

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Unformatted text preview: ces, 3. Regulating the excess capacity in the private sector, 4. Efficient operational management of the public sector, 5. Developing small­scale sector by increasing the limit of investment, 6. Automatic expansion in large­scale industrial units, and 7. Dealing with industrial sickness effectively. New Industrial Policy 1991 New Industrial Policy 1991 As a part of the liberalisation, a new industrial policy was announced by the Government of India in two parts, on July 24, 1991 and August 6, 1991, respectively. Some of the major aspects of the industrial policy were as follows: ► Automatic clearance introduced for import of capital goods ► Pre­eminent role of public sector in eight core areas ► Part of government’s shareholding in public sector is proposed to be disinvested ► Chronic loss­making public sector units to be referred to the Board of Industrial and Financial Reconstruction (BIFR) ► A simplified procedure for new projects was introduced to manufacture goods not covered by compulsory licensing ► Decisive contribution was expected from foreign investment ► Industrial policy for the small­scale sector announced on August 6, 1991 ► Objectives: Objectives: The objectives of the 1991 policy included Reducing or minimizing the bureaucratic control of the industrial economy of India, 2. Liberalisation of industrial and economic activities for integrating the Indian economy with the world economy, 3. Removing restrictions on foreign direct investment, 4. Freeing the domestic entrepreneur from excessive MRTP restrictions, and 5. Streamlining the role of public sector enterprises. 1. The objectives of the 1991 policy included The objectives of the 1991 policy included Among the areas covered, the most important ones are: 1. Industrial licensing, 2. Foreign investment, 3. Technology transfer and import of foreign technology, 4. Public sector policy, 5. Policy relating to MRTP Act, and 6. An exclusive small­sector policy. THE NEW SMALL­SCALE SECTOR POLICY OF THE NEW SMALL­SCALE SECTOR POLICY OF 1991 ►The new policy on tiny, small, and village enterprises envisages almost a U­turn in policy stimulants and structure of micro and small enterprises in the country. Objectives Objectives The primary objective of the small­scale industrial policy during the 1990s was to impart more vitality and growth impetus to the sector along with employment & export, The other objectives are as follows: 1. To decentralize and delicense the sector, 2. To deregulate and debureaucratise the sector, 3. To review all statutes, regulations, and procedures and effect suitable modifications wherever necessary, 4. To promote small enterprise, especially industries in the tiny sector, 5. To motivate small and sound entrepreneurs to set up new green enterprises in the country, 6. To involve traditional and reputed voluntary organisations in the intensive development of Khadi and Village Industrial Commission (KVIC) through area approach, 7. To ma...
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