CA Foundation · Business Economics · Indian Economy
The Industrial Policy Resolution of 1991 introduced major changes in India's industrial framework. Which of the following was a feature of the 1991 industrial policy?
The 1991 industrial policy abolished industrial licensing for most industries, keeping it only for a few areas linked to security, strategy, hazards and environment. It also cut the public sector's reserved list and allowed automatic approval of foreign technology agreements, so the other options describe the older, restrictive regime.
- AExtension of industrial licensing to all industries
- BAbolition of industrial licensing for most industries except a few specified onesCorrect
- CExpansion of the list of industries reserved exclusively for the public sector
- DCompulsory prior approval of the government for all foreign technology agreements
Explanation
The 1991 policy abolished industrial licensing for most industries, retaining it only for a short list on grounds such as security, strategic concerns, hazardous nature and environment. It also reduced the public sector's reserved list and gave automatic approval to foreign technology agreements, so the other options run opposite to the reform.
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