CA Foundation · Business Economics · Indian Economy
Which of the following was a key feature of the industrial sector reforms under liberalisation after 1991?
Industrial licensing was abolished for most products, remaining only for a few industries linked to security, strategy or environmental concerns. The reserved list for the public sector was also reduced, giving private firms freedom to enter and expand.
- AReservation of most industries exclusively for the public sector
- BAbolition of industrial licensing for most products except a few specified industriesCorrect
- CCompulsory licensing for all new units
- DProhibition on expansion of large firms under the MRTP Act
Explanation
After 1991 industrial licensing was abolished for all but a small list of industries such as those related to security, strategic concerns and environmental hazards. The public sector's reserved list was cut sharply, and MRTP restrictions on expansion were removed, so the other options describe the old regime.
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