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Yogita Ingle 6 years, 5 months ago
The main characteristics of new Economic Policy 1991 are:
1. Delicencing. Only six industries were kept under Licencing scheme.
2. Entry to Private Sector. The role of public sector was limited only to four industries; rest all the industries were opened for private sector also.
3. Disinvestment. Disinvestment was carried out in many public sector enterprises.
4. Liberalisation of Foreign Policy. The limit of foreign equity was raised to 100% in many activities, i.e., NRI and foreign investors were permitted to invest in Indian companies.
5. Liberalisation in Technical Area. Automatic permission was given to Indian companies for signing technology agreements with foreign companies.
6. Setting up of Foreign Investment Promotion Board (FIPB). This board was set up to promote and bring foreign investment in India.
7. Setting up of Small Scale Industries. Various benefits were offered to small scale industries.
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