The NIP aims at liberalisation of Indian industry.
This article provides information about the features of new economic policy ! The main characteristics of new Economic Policy are: Only six industries were kept under Licencing scheme.
Entry to Private Sector. The role of public sector was limited only to four industries; rest all the industries were opened for private sector also. Disinvestment was carried out in many public sector enterprises.
Liberalisation of Foreign Policy.
Liberalisation in Technical Area. Automatic permission was given to Indian companies for signing technology agreements with foreign companies. This board was set up to promote and bring foreign investment in India.
Setting up of Small Scale Industries.
Various benefits were offered to small scale industries. There are three major components or elements of new economic policy- Liberalisation, Privatisation, Globalisation. Liberalisation refers to end of licence, quota and many more restrictions and controls which were put on industries before Indian companies got liberalisation in the following way: Privatisation refers to giving greater role to private sector and reducing the role of public sector.
To execute policy of privatisation government took the following steps: This board was set up to revive sick units in public sector enterprises suffering loss. It refers to integration of various economies of world. Till Indian government was following strict policy in regard to import and foreign investment in regard to licensing of imports, tariff, restrictions, etc.
Government removed many restrictions from import of capital goods. As a result of globalisation physical boundaries and political boundaries remained no barriers for business enterprise. Whole world becomes a global village.
Globalisation involves greater interaction and interdependence among the various nations of global economy. The factors and forces of business environment have lot of influence over the business. The common influence and impact of such changes in business and industry are explained below: After the new policy, Indian companies had to face all round competition which means competition from the internal market and the competition from the MNCs.
The companies which could adopt latest technology and which were having large number of resources could only survive and face the competition. Many companies could not face the competition and had to leave the market. For example, Weston Company which was a leader in.
Bythe company almost became unknown in the T. Prior to new economic policy there were very few industries or production units.
As a result there was shortage of product in every sector. Because of this shortage the market was producer-oriented, i. But after new economic policy many more businessmen joined the production line and various foreign companies also established their production units in India. As a result there was surplus of products in every sector.
This shift from shortage to surplus brought another shift in the market, i.
The market became customer- oriented and many new schemes were made by companies to attract the customer. Rapidly Changing Technological Environment:A major shift in the industrial policy was made by the Congress (I) Government led by Mr.
P. B. Narasimha Rao on July 24, The main aim of this policy was to unshackle the country's Short notes on Industrial Policy, New Industrial Policy of the Government: liberalization, deregulation and privatisation.
Main objectives of New Economic Policy. Main features of the policy of liberalisation.
Evaluation of Liberalization. Impact of Liberalization on Indian Economy. With the New Industrial Policy’ , the Indian Government intended to integrate the. Economic Reforms in India since Category: To liberalize the industrial policy of the government and to invite foreign investment by privatization of industries and abolishing the license system as a part of that liberalization.
The main objectives of the new fiscal policy are, however, to establish economic structural adjustment. The Industrial Revolution was the transition to new manufacturing processes in the period from about to sometime between and This transition included going from hand production methods to machines, new chemical manufacturing and iron production processes, the increasing use of steam power, the development of machine tools and the rise of the factory system.
The main criticism against industrial policy arises from the concept of government failure. Industrial policy is seen as harmful as governments lack the required information, Okuno-Fujiwara, Masahiro (). "Industrial Policy in Japan: A Political Economy View" (PDF).
In Paul Krugman.
Hence, the Industrial Policy Resolution gave primacy to the role of the State to assume a predominant and direct responsibility for industrial development. 4. The Industrial Policy statement of , inter alia, identified high-priority industries where investment from large industrial houses and foreign companies would be permitted.