1. Economic Reforms and Industrial Sector and International Trade
Dr. Anil K wavare
Department of Economics
Chhatrapati Shivaji College, Satara
Mobile -

2. Industrial Policy 1991: An Overview
Economic Reforms: LPG
Industrial Policy 1991: An Overview
Main Features (Objectives)
To maintain sustained growth in productivity.
To enhance gainful employment.
To achieve optimum utilization of human resources.
To attain international competitiveness.
To transform India into a global partner and player in global arena.
Main Focus on
Deregulating Indian industry
Allowing the industry freedom and flexibility in responding to market forces and
Providing a policy regime which facilitates and fosters growth of Indian Industry

3. Policy Measures Abolition of Industrial Licensing:
Areas:
Abolition of Industrial Licensing:
Distillation and brewing of alcoholic drinks.
Cigar cigarettes and other substitutes of prepared tobacco.
Electronics, Aerospace and all types of defense equipment’s.
Industrial explosives including match boxes.
Hazardous chemicals.
Public Sector’s Role
The 1956 Resolution has reserved 17 Industries for the public sector. The 1991 industrial policy reduced this number to 8:
Arms and ammunition
Atomic energy
Coal and Lignite
Mineral oils
Mining of iron ore, Manganese ore, Chrome ore, Gypsum, Sulphur, Gold and Diamond.
Mining of copper, Lead, Zinc, Tin, Molybdenum and Wolfarm.
Minerals specified in the schedule of the atomic energy
Rail transport

4. Industrial location Policy liberalized.
Freer Entry to Foreign Investment and Technology
FDI is prohibited only in the following sector:
Retail trading (except single brand product retailing)
Atomic energy.
Lottery business
Gambling and betting.
Industrial location Policy liberalized.

29. NEW TRADE POLICY: THE REFORM PERIOD
Features:
Freer Imports and Exports.
Rationalisation of Tariff Structure.
Decanalisation.
Convertibility of Rupee on Current Account.
Trading Houses.
Special Economic Zones.
EOU scheme.
Agriculture Export Zones.
Market Access Initiative Scheme.
Five Thrust Sectors.
Served from India to be built as a brand.
Setting up of Free Trade & Warehousing Zones ( FTWZs)
Reducing transactional costs & simplifying procedures.
Concessions & Exemptions.