๐ Topic 05 of 6 ยท Chapter 08 ยท Industries of India
Industrial Policy of India โ 1991 LPG Reforms
Industrial Policy 1948, 1956, 1991 LPG reforms โ complete notes for UPSC & PSC exams.
๐ Industrial Policies of India
| Policy | Year | Key Features |
|---|---|---|
| Industrial Policy Resolution | 1948 | Mixed economy; 4 categories; state control over key sectors; first industrial policy |
| Industrial Policy Resolution | 1956 | Expanded public sector; 3 schedules (A, B, C); “Economic Constitution of India”; Mahalanobis model |
| New Industrial Policy | 1991 | LPG reforms; abolished industrial licensing; FDI allowed; MRTP Act diluted; privatisation |
๐ 1991 LPG Reforms โ Key Changes
- Liberalisation โ industrial licensing abolished for most industries; import restrictions reduced
- Privatisation โ public sector monopoly reduced; disinvestment started; private sector encouraged
- Globalisation โ FDI (Foreign Direct Investment) allowed in most sectors; trade barriers reduced
- Finance Minister: Dr. Manmohan Singh
- Prime Minister: P.V. Narasimha Rao
- Triggered by Balance of Payments crisis โ India had to pledge gold to IMF
๐ 1956 Policy โ Three Schedules:
โข Schedule A = 17 industries exclusively for state (defence, atomic energy, railways, iron & steel)
โข Schedule B = 12 industries โ state would progressively own; private allowed
โข Schedule C = remaining industries โ private sector
โข Schedule A = 17 industries exclusively for state (defence, atomic energy, railways, iron & steel)
โข Schedule B = 12 industries โ state would progressively own; private allowed
โข Schedule C = remaining industries โ private sector
โญ Key Facts โ Industrial Policy:
โข 1991 reforms = LPG = Dr. Manmohan Singh = PM P.V. Narasimha Rao
โข 1956 policy = “Economic Constitution of India” = 3 schedules
โข MRTP Act = Monopolies and Restrictive Trade Practices Act = diluted in 1991
โข India pledged 67 tonnes of gold to IMF to avoid default in 1991
โข 1991 reforms = LPG = Dr. Manmohan Singh = PM P.V. Narasimha Rao
โข 1956 policy = “Economic Constitution of India” = 3 schedules
โข MRTP Act = Monopolies and Restrictive Trade Practices Act = diluted in 1991
โข India pledged 67 tonnes of gold to IMF to avoid default in 1991