What are the features of the economic policy of 1991?

The main characteristics of new Economic Policy 1991 are:

  • Delicencing.
  • Entry to Private Sector.
  • Disinvestment.
  • Liberalisation of Foreign Policy.
  • Liberalisation in Technical Area.
  • Setting up of Foreign Investment Promotion Board (FIPB).
  • Setting up of Small Scale Industries.

How was Indian economy in 1991?

The Indian GDP rose from $266 billion in 1991 (inflation adjusted) to $3 trillion in 2019 (1100% increase) while its purchasing power parity rose from $1 trillion in 1991 to $12 trillion in 2019 (1100% increase).

What is the nature of Indian economy after 1991?

Economic reforms introduced after 1991 brought foreign competition, led to privatisation of certain public sector industries, opened up sectors hitherto reserved for the public sector and led to an expansion in the production of fast-moving consumer goods.

What was the condition of Indian economy before 1991?

“Before the process of reform began in 1991, the government attempted to close the Indian economy to the outside world. The Indian currency, the rupee, was inconvertible and high tariffs and import licensing prevented foreign goods reaching the market.

What was industrial policy of 1991?

New Industrial Policy, 1991. The New Industrial Policy, 1991 had the main objective of providing facilities to market forces and to increase efficiency. The government allowed Domestic firms to import better technology to improve efficiency and to have access to better technology.

Why did India adopted New Economic Policy in 1991?

The following factors became the reason for economic reforms to be introduced in India (i) High Fiscal Deficit, Debt Trap and Low Foreign Exchange Reserves Government expenditure exceeded the revenue, from various sources such as taxation, earning from public sector enterprises etc due to high spending on social sector …

What is balance of payment crisis in 1991?

Balance of Payment Crisis (1991), India. India faced the Balance of Payment crisis in 1991 due to huge macroeconomic imbalance. Balance of Payment (BoP) Crisis is also called currency crisis. It occurs when a nation is unable to pay for essential imports or service its external debt payments.

Why did India open its economy in 1991?

Although some attempts at liberalisation were made in 1966 and the early 1980s, a more thorough liberalisation was initiated in 1991. The reform was prompted by a balance of payments crisis that had led to a severe recession and also as per structural adjustment programs for taking loans from IMF and World Bank.

What are the features of new industrial policy 1991?

The policy has brought changes in the following aspects of industrial regulation:

  • Industrial delicensing.
  • Deregulation of the industrial sector.
  • Public sector policy (dereservation and reform of PSEs)
  • Abolition of MRTP Act.
  • Foreign investment policy and foreign technology policy.

What were the major impacts of economic reform of 1991?

Question: What were the major impacts of the economic reforms of 1991? Answer: Reforms led to increased competition in the sectors like banking, leading to more customer choice and increased efficiency. It has also led to increased investment and the growth of private players in these sectors.

How many industries are reserved for public sector in 1991?

eight industries
Likewise, from eight industries reserved for the public sector in 1991, there are only three industries reserved for the public sector at present, they are: Atomic energy. The substances specified in the schedule to the notification of the Government of India in the Department of Atomic Energy number S.O.