Following the Industrial Policy _____ of India the government has set up a special board known as Foreign Investment Promotion Board.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4: 1991.
Explanation:
The process of economic liberalization was initiated under India's Industrial Policy of 1991 (also known as the New Economic Policy). In pursuance of this policy, the Foreign Investment Promotion Board (FIPB) was established to streamline and promote Foreign Direct Investment (FDI) in India. The primary objective of the 1991 policy was to open the Indian economy to global competition and to dismantle the 'License Raj'.
Additional Facts:
- LPG Reforms: The three main pillars of the 1991 Industrial Policy were Liberalization, Privatization, and Globalization.
- Abolition of FIPB: In May 2017, the Government of India abolished the FIPB to promote 'Ease of Doing Business'. Currently, proposals for foreign investment are directly handled by the respective ministries.
- 1948 Policy: This was India's first industrial policy, which laid the foundation for a 'Mixed Economy'.
- 1956 Policy: This is referred to as India's 'Economic Constitution', as it emphasized the expansion of the Public Sector.
Potential Questions for Upcoming Exams:
Question: Which industrial policy is referred to as the 'Economic Constitution of India'?
Answer: Industrial Policy, 1956.
Question: Who were the Prime Minister and Finance Minister of India during the economic reforms of 1991?
Answer: Prime Minister: P.V. Narasimha Rao; Finance Minister: Dr. Manmohan Singh.
Question: Which portal is currently operational in India for the approval of FDI proposals?
Answer: Foreign Investment Facilitation Portal (FIFP).