The document summarizes key aspects of India's Industrial Policy of 1991: 1) Announced in July 1991, it aimed to correct distortions and weaknesses in India's industrial structure by abolishing licensing for most industries and allowing greater private sector participation and foreign investment. 2) It allowed the government to disinvest, or sell its equity in public enterprises to the private sector and dilute its ownership stake. 3) It opened the door to greater foreign direct investment by establishing the Foreign Investment Promotion Board to consider and recommend foreign investment proposals. 4) The overall impact was to liberalize the economy by reducing unnecessary controls and regulations, increasing privatization, and more closely integrating India's economy with the global

1. Prepared by :AMBILI P
COMMERCE OPTION
ZAINAB MEMORIAL
COLLEGE OF TEACHER
EDUCATION

2. 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

4. Abolished licensing for most of industries

5. Examples;

6. Disinvestment

7. DISINVESTMENT
Government can sell its equity
capital to private sector .
Dilution of stake of the government
in a public enterprise .

9. Inflow of foreign direct investment

10. Who is
control
FDI
flow ?

12. FOREIGN INVESTMENT PROMOTION BOARD
National agency of government.
To consider and recommend
foreign direct investment

13. Technology agreement with
foreign company

14. IMPACT

17. It means liberating the
economy from
unnecessary control
and regulations .
E.g : delicensing

19. How it different from others ?

22. It means ownership , control
and management of public
sector unit passing to the
private sector .

26. It means integrating the economy of
the country with world economy .
Entire world as a single market .
Increasing economic integration

28. .

30. Free flow of capital
among nation

34. Free flow of labour
among different nations

38. ASSIGNMENT
 State impact of industrial
policy 1991