|Major objectives of India's New Industrial Policy 1991 are as follows:|
|(1) The New Industrial Policy, 1991 seeks to liberate the industry from the shackeles of licensing system.|
|(2) Drastically reduce the role of public sector.|
|(3) Encourage foreign participation in India's industrial development.|
|(4) Liberalisation, privatisation and globalisation in industries.|
|The process of globalization includes opening up of world trade, development of advanced means of communication, internationalization of financial markets, growing importance of MNCs, population migrations and increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution. It refers to the integration of economies of the world through uninhibited trade and financial flows, as also through mutual exchange of technology and knowledge. It also contains free inter-country movement of labour. This implies opening up the economy to foreign direct investment by providing facilities to foreign companies to invest in different fields of economic activity in India, removing constraints and obstacles to the entry of MNCs, allowing Indian companies to enter into foreign collaborations and also encouraging them to set up joint ventures abroad; carrying out massive import liberalization programs by switching over from quantitative restrictions to tariffs and import duties, therefore globalization has been identified with the policy reforms of 1991 in India.|
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