The Social Currency

Industrial Policy, 1991 It were the industrial policies of past which had shaped the nature and structure of the Indian economy. The need of the hour was to change the nature and structure of the economy by early 1990s. The GoI decided to change the very nature of the industrial policy which will automatically lead to change in the nature and scope of the economy. And here came the New Industrial Policy of 1991. With this policy the government kickstarted the very process of reform in the economy, that is why the policy is taken more as a process than a policy . Background: India was faced with severe balance of payment crisis by June 1991. Basically, in early 1990, there were inter-connected set of events, which were growing unfavourable for the Indian economy: (i). Due to the Gulf War (1990-91), the higher oil prices were fastly depleting India's Foreign reserves. (ii). Sharp decline in the private remittances from the overseas Indian workers in the wake of the Gulf War, speciall...

Industrial policy An industrial policy in the Indian economy refers to set of Government Guidelines and strategies aim at directing and promoting the development of the Industrial sector often including measures to regulate pacific industries encourage investment and foster domestic manufacturing with clinical policies including the 1948 Industrial policy dissolution. The 1956 policy emphasizing public sector investment and the 1991 New Industrial Policy which dictate towards liberalization and reduce government control. Industrial Policy Resolution, 1948 Announced on April 8, 1948 this was not only the first industrial policy statement of India, but it decided the model of the economic system (mixed economy), too. Thus, it was the first   economic policy of the country. The major highlights of the policy are given below: (i).  India will be a mixed economy. (ii).  Some of the important industries were put under the Central List  such as coal, power, railways, c...