A) 1986
B) 1991
C) 2009
D) 2011
Correct Answer: B
Solution :
[b] The year 1991 witnessed a drastic change in the industrial policy governing industrial development in the country since independence. This land mark change was entirely a new chapter which was to enforce totally open economic system as compared to the earlier mixed system. The country decided to follow the lines of capitalism. It is also said that there was shift from 'imperative' to 'indicative' planning under new system. New industrial policy abolished all industrial licensing, irrespective of the level of investment, except for a short list of 18 industries related to the security and strategic concerns, social reasons, hazardous chemicals and overriding environmental reasons and items of elitist consumption. With this government took up the role of facilitator and regulator. Some conclusive indications toward this are - replacing Foreign Exchange - Regulation Act with Management Act, latter one being more liberal and less harsh. Similar, MRTP act was replaced by competition Act. Now FDI is allowed in wide array of sectors, in many of them through automatic route. However, post 1991 growth is accused of lopsided growth with devastating social impact as government rolled back expenditure from social sectors too.
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