Discuss the various features of New Industrial Policy 1991.
Or Explain the principal features of the Industrial policy, 1991 of India.
Ans. Several salient features of the new industrial policy deserve particular attention. These include steps taken towards greater marketisation of the industrial economy by dismantling control, in particular to ensure decentralisation of the industrial activities to the rural and backward sector of the economy to redefine public sector activities. Foreign Technology Agreements: The entry of foreign technology too has been made easy in the new industrial policy. There is a provision that allows automatic approval for technology agreements related to high priority industries. Similar facilities will also be available for other industries if such agreements do not require the expenditure of free foreign exchange. Further, it is also provided that no prior clearance would be required for the hiring of foreign technicians and foreign testing of indigenously developed technologies. With no interference by the government, it is hoped that Indian business will develop relationship with the suppliers of foreign technology. (as also foreign investors) on a continuing basis and make their decisions on the bases of commercial considerations. It is further hoped that the Indian businesses will make necessary efforts to absorb foreign technologies by devoting larger fund s to research and development. Strengthening Private Sector: A major step towards a greater marketisation of the industrial economy is the abolition of the licensing system for a large number and a large variety of industries. NIP changes the set-up of the country towards a greater role for the private sector.
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