π Topic 05 of 6 Β· Chapter 08 Β· Industries of India
Industrial Policy of India β 1991 LPG Reforms
Industrial Policy 1948, 1956, 1991 LPG reforms β complete notes for UPSC & PSC exams.
π 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 |
π 1991 LPG Reforms β Key Changes
- Liberalisation β industrial licensing abolished for most industries; import restrictions reduced
- Privatisation β public sector monopoly reduced; disinvestment started; private sector encouraged
- Globalisation β 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 β India had to pledge gold to IMF
π 1956 Policy β Three Schedules:
β’ Schedule A = 17 industries exclusively for state (defence, atomic energy, railways, iron & steel)
β’ Schedule B = 12 industries β state would progressively own; private allowed
β’ Schedule C = remaining industries β private sector
β’ Schedule A = 17 industries exclusively for state (defence, atomic energy, railways, iron & steel)
β’ Schedule B = 12 industries β state would progressively own; private allowed
β’ Schedule C = remaining industries β private sector
β Key Facts β Industrial Policy:
β’ 1991 reforms = LPG = Dr. Manmohan Singh = PM P.V. Narasimha Rao
β’ 1956 policy = “Economic Constitution of India” = 3 schedules
β’ MRTP Act = Monopolies and Restrictive Trade Practices Act = diluted in 1991
β’ India pledged 67 tonnes of gold to IMF to avoid default in 1991
β’ 1991 reforms = LPG = Dr. Manmohan Singh = PM P.V. Narasimha Rao
β’ 1956 policy = “Economic Constitution of India” = 3 schedules
β’ MRTP Act = Monopolies and Restrictive Trade Practices Act = diluted in 1991
β’ India pledged 67 tonnes of gold to IMF to avoid default in 1991