Question
What were the objectives of the “Industrial Policy 1991”? Discuss various policy measures adopted for achieving these objectives. Evaluate briefly the success of this policy.
Answer :
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Main objectives of New Economic Policy -1991
The main objectives to launch new economic policy (NEP) in 1991 are as follows:
- The main objective was to plunge Indian economy in to the field of ‘Globalization and to give it a new drive on market orientation.
- The new economic policy intended to reduce the rate of inflation and to remove imbalances in payment.
- It intended to move towards higher economic growth rate and to build sufficient foreign exchange reserves.
- New economic policy aimed to accomplish economic stabilization and to convert the economic policies in to a market economy by removing all kinds of unnecessary restrictions.
- New economic policy wanted to permit the international flow of goods, services, capital, human resources and technology, without many restrictions.
In the mid-1991, the government has made some drastic changes in its policies bearing on trade, foreign investment exchange rate, and industry, fiscal of fairs. The various elements constitute an economic policy. It has been documented in literature that economic development ultimately depends on industrialization. Industrial policy is meant for all those principles, rules, regulations and procedures concerning the rate of growth, ownership, location pattern, and function of industrial undertakings in the country
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