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Prepared by :AMBILI P
COMMERCE OPTION
ZAINAB MEMORIAL
COLLEGE OF TEACHER
EDUCATION
INDUSTRIAL POLICY 1991
Announced on July 24 1991, by
Government of India
Aim :To correct the distortion and
weakness of the industrial
structure of the country
Abolished licensing for most of industries
Examples;
Disinvestment
DISINVESTMENT
Government can sell its equity
capital to private sector .
Dilution of stake of the government
in a public enterprise .
Inflow of foreign direct investment
Who is
control
FDI
flow ?
FOREIGN INVESTMENT PROMOTION BOARD
National agency of government.
To consider and recommend
foreign direct investment
Technology agreement with
foreign company
IMPACT
It means liberating the
economy from
unnecessary control
and regulations .
E.g : delicensing
How it different from others ?
It means ownership , control
and management of public
sector unit passing to the
private sector .
It means integrating the economy of
the country with world economy .
Entire world as a single market .
Increasing economic integration
.
Free flow of capital
among nation
Free flow of labour
among different nations
ASSIGNMENT
 State impact of industrial
policy 1991
New economic policy

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