Industrial policy changes started in India in a big way from the year 1991 which marked the beginning of economic reforms and LPG. Major changes initiated in 1991 were:
(a) Delicensing of a large number of industries.
(b) Dilution of the role of public sector
(c) Opening up foreign investment
(d) Relaxation of MRTP Act.
Subsequent changes in industrial policy have been, by and large, extension of the above and enactment of competition Act, FEMA, import liberalisation, convertibility of rupee and further opening up foreign investment in tune with WTO making Indian industry global. Industrial growth in India is measured on the basis of IIP which has nearly 80 percent weight of the manufacturing sector. Initial euphoria of liberalisation resulted in robust industrial growth in the 8th Five Year Plan (1992-1997) during which the growth rate peaked to 13 percent in 1995-96.
(a) Delicensing of a large number of industries.
(b) Dilution of the role of public sector
(c) Opening up foreign investment
(d) Relaxation of MRTP Act.
Subsequent changes in industrial policy have been, by and large, extension of the above and enactment of competition Act, FEMA, import liberalisation, convertibility of rupee and further opening up foreign investment in tune with WTO making Indian industry global. Industrial growth in India is measured on the basis of IIP which has nearly 80 percent weight of the manufacturing sector. Initial euphoria of liberalisation resulted in robust industrial growth in the 8th Five Year Plan (1992-1997) during which the growth rate peaked to 13 percent in 1995-96.
