The Main objectives of the New Industrial Policy of 1991 are:
- To introduce an economic system free of excessive regulatory norms and bureaucratic controls.
- To liberalize Indian economy and work towards globalization.
- To relax foreign direct investment norms.
- To opens areas otherwise reserved exclusively for public sector participation for private and foreign participation. This was driven by the fact that several public sector enterprises were either incurring losses year after year and had very low rate of return.
- To take away restrictions on investments by business and industrial firms, under the Monopolistic and Restrictive Trade Practices (MRTP) Act.
The main features of New Economic Policy are as follows:
- The policy emphasized the role of public sector in establishment of heavy and basic industries was stressed.
- Role of state (via public sector) was emphasized for development of infrastructure projects, roads, irrigation dams, power projects, communication systems was stressed in the policy.
- The need for expansion/development of social infrastructure projects (schools, colleges, technical and engineering institutions, universities) and medical facilities (primary health centers, hospitals, medical institutions for doctoral training, nurse and support staff training) was emphasized.
Mention new dimensions of the entrepreneurial role of the Government.
The role of government in economy has been indeterminate since the very beginning. In India, economic development has been marked mainly in quantitati...See moreAnswered
List some functions of Government in promoting business operations.
The Government plays an important role in promoting business operations. The promotional role encompasses government efforts to provide adequate in...See moreAnswered
Explain the Economic System of India with respect to Patterns of ownership and organization.
On basis of organization pattern, economic system can be corporate or non-corporate. Corporate sector. It comprises of business entities formally brou...See moreAnswered
Explain the aspects of labour force about economic development in India.
There are two important aspects of labour quantity and quality, on basis of which one can conclusions about economic development in the country. The q...See moreAnswered
What possible conclusions can you draw on the basis of trends in inequalities of income and other indicators about economic development in India?
Economic development is indicated by multiple variables, including per capita income, poverty, inequalities, per capita consumption, improvement in me...See moreAnswered
Explain the trends in per capital real income and poverty in India since 1951.
Trends in per capita real income: The base year for calculating real income or National Income at Constant Price (NICOP) estimates is...See moreAnswered
Define economic development. How it is different from economic growth?
Economic development has been defined as economic growth plus change by Meier. Economic development is indicated by variables, including per capita in...See moreAnswered
What is economic growth? Explain the trends in rate of economic growth of India economy since 1951.
Economic growth refers to the increase in full employment real output (national income) at constant prices. In practical sense, it refers to the chang...See moreAnswered