Which of these were significant elements of the New Industrial Policy 1991 De reservation and de lic...........

Economic Affairs Industrial Policy and Industrial Growth

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Which of these were significant elements of the New Industrial Policy, 1991?

De-reservation and de-licensing of certain industries
Revival of the MRTP Limit (Monopolistic and Restrictive Trade Practices)
Promotion to Foreign Investment
Commitment to a Foreign Exchange Management Act allowing improved current account convertibility

Select the correct answer using the codes below.

1 and 2 only

1, 3 and 4 only

2 and 4 only

1 and 3 only

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Explanation:

Statement 1: This policy abolished the Industrial licensing for all industries except for a short list of 18 industries. This list of 18 industries was further pruned in 1999 whereby the number reduced to six industries viz. drugs and pharmaceuticals, hazardous chemicals, explosives such as gun powder and detonating fuses, tobacco products, alcoholic drinks, and electronic, aerospace and defence equipment.

Statement 2: The limit was abolished and companies were allowed to expand freely with only certain limitations. Statement 3: This was the first Industrial policy in which foreign companies were allowed to have majority stake in India. In 47 high priority industries, up to 51% FDI was allowed. For export trading houses, FDI up to 74% was allowed. Today, there are numerous sectors in the economy where government allows 100% FDI.

Statement 4: Restrictions on exchange of currency for the purposes of current account (such as trade or remittances) were revoked.