The Industrial Licensing System was introduced in:
Show answer & explanation
Correct answer: B
Explanation
Correct Answer:
1951
Explanation:
The Industrial Licensing System in India was officially introduced through the Industries (Development and Regulation) Act, 1951 (IDRA). The primary objective of this system was to regulate industrial production, prevent the concentration of economic power in a few hands, and direct investments into socially prioritized sectors in alignment with national economic plans.
Additional Points:
Following the introduction of the New Economic Policy (LPG Policy) in 1991, the government dismantled industrial licensing for most sectors, significantly liberalizing the Indian economy.
Important Questions and Answers:
Question: Under which legislation was the industrial licensing system implemented in India?
Answer: Industries (Development and Regulation) Act, 1951.
Question: In which year was the New Economic Policy (LPG Policy) introduced in India?
Answer: 1991.