Explain any 4 features of Economic Policy, 1991.

1.	Explain any 4 features of Economic Policy, 1991.
Answer» Features of Economic Policy, 1991: Delicensing: The new industrial policy abolished all industrial licensing, except 18 specified industries related to security and strategic concerns and social reasons. Abolition of MRTP Act: No prior approval of the MRTP commission is now required for setting up industrial units by the large business houses. Encouragement to Small Scale Industries (SSI): The investment limit of the SSI has been increased up to 5 crores which will help to upgrade their machinery. Encouraging Foreign Investment: Many industrial units were open to foreign investment under the 1991 policy. The limit was raised to 51% and 100% in some industries and 100% in mining, pollution control equipment, electricity generation projects, ports, etc.

Answer»

Features of Economic Policy, 1991:

Delicensing: The new industrial policy abolished all industrial licensing, except 18 specified industries related to security and strategic concerns and social reasons.
Abolition of MRTP Act: No prior approval of the MRTP commission is now required for setting up industrial units by the large business houses.
Encouragement to Small Scale Industries (SSI): The investment limit of the SSI has been increased up to 5 crores which will help to upgrade their machinery.
Encouraging Foreign Investment: Many industrial units were open to foreign investment under the 1991 policy. The limit was raised to 51% and 100% in some industries and 100% in mining, pollution control equipment, electricity generation projects, ports, etc.

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