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

• Industrial delicensing.
• De-reservation of the Industrial Sector.
• Public sector policy (dereservation and reform of PSEs).
• Abolition of MRTP Act.
• Foreign Investment policy and foreign technology policy.

Industrial delicensing policy:

• The most important objective of the new Industrial policy of 1991 was the end of the Industrial licensing or the license raj or red tapism.
• The Industrial licensing policies, private sector firms had to secure licenses to start an Industry.

Dereservation of the Industrial Sector:

• The public sector was given reservation especially in the capital goods and key industries.
• Industrial deregulation, most of the industrial sectors were opened to the private sector as well.
• The new industrial policy, only three sectors viz., atomic energy, mining and railways will continue as reserved for public sector.

Reforms related to the Public Sector enterprises:

• Reforms in the public sector were aimed at enhancing efficiency and competitiveness of the sector.
• The government identified strategic and priority areas for the public sector concentrate.

Abolition of MRTP Act:

• The New Industrial Policy of 1991 has abolished the Monopoly and Restrictive Trade Practices Act 1969.
• In 2010, the Competition Commission has emerged as the watchdog in monitoring competitive practices in the economy.

Foreign Investment Policy:

• Foreign investment including FDI and FPI were allowed.
• In 1991, the government announced a specified list of high-technology and highinvestment priority Industries.
• Foreign Direct Investment (FDI) upto 51 percent foreign equity.
• Foreign Investment Promotion Board has been set up to negotiate with International firms and approve Foreign Direct Investment.