Important initiatives by the Government towards Industrial Policy:

The policy has brought changes in the following aspects of industrial regulation.

1. Industrial de – licensing. 

2. De – reservation of the Industrial Sector. 

3. Public sector policy, (de – reservation and reform of PSE ) 4. Abolition of MRTP Act. 

5. Foreign Investment policy and foreign technology policy.

Industrial delicensing policy:

1. The most important part of the new Industrial policy of 1991 was the end of the Industrial licensing or the license raj or red tapism.

2. The Industrial licensing policies, private sector firms had to secure licenses to start an Industry.

De – reservation of the Industrial Sector:

1. The public sector was given reservation especially in the capital goods and key Industries. 

2. Industrial deregulation, most of the Industrial Sectors were opened to the private sector as well. 

3. The new Industrial policy, only three sectors atomic energy, mining and railways will continue as reserved for public sector.

Reforms related to the Public Sector enterprises:

1. Reforms in the public sector were aimed at enhancing efficiency and competitiveness of the sector. 

2. The government identified strategic and priority areas for the public sector concentrate.

Abolition of MRTP Act:

1. The New Industrial Policy of 1991 has abolished the Monopoly and Restrictive Trade Practices Act 1969. 

2. In 2010, the Competition Commission has emerged as the watch dog in monitoring competitive practices in the economy.

Eoreign Investment Policy;

1. Foreign investment including FDI and FPI were allowed.

2. In 1991, the government announced a specified list of high technology and high investment priority Industries. 

3. Foreign direct investment upto 51 percent foreign equity. 

4. Foreign Investment Promotion Board has been set up to negotiate with International firms and approve direct Foreign Investment.