- The New Industrial Policy of 1991, announced in July 1991, marked a paradigm shift in India's economic approach. - A key feature of this policy was the drastic reduction in the scope of industrial licensing, effectively dismantling the 'License Raj' that had restricted industrial growth and competition for decades. Only a few strategic industries remained under compulsory licensing. - This removal of licensing barriers is widely regarded as the cornerstone and starting point of India's post-1991 economic reforms or liberalisation.
These reforms aimed at shifting the economy from a protected, state-controlled model to a more market-oriented one. The three key pillars of this strategy were Liberalisation (reducing government controls), Privatisation (reducing the role of the public sector), and Globalisation (integrating the Indian economy with the world economy). 197. Economic liberalisation in India started with
Asked in UPPCS Prelims 2000 · Topic: Nature of Indian Economy (Evolution from Planned to Market-Oriented Economy)
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Answer: A. substantial changes in industrial licensing policy
More Economic Development questions
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