Which industrial policy marked the beginning of liberalisation in the Indian industry, reducing the restrictions on private companies?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Industrial Policy 1991.
- The Industrial Policy of 1991 marked the beginning of liberalization in the Indian industry, significantly reducing restrictions on private companies. It was introduced as a response to the balance of payments crisis in 1991, the policy aimed to revitalize the Indian economy through liberalization, privatization, and globalization.
- The policy laid the foundation for India's economic liberalization, leading to a shift from a controlled economy to a more market-driven one. The policy dismantled the system of licenses required for starting most industries, known as the "License Raj."