Impact of new industrial policy on Indian economy with special reference to industrial sector
Industrialization is the main condition for the development or growth of Indian economy because industrial sector plays a pivotal role in the economy, they can solve the problems of general poverty, unemployment, backwardness, low productivity and low standard of living etc. India began liberalizing its economy with the objective of making Indian industries more efficient and globally competitive. Since the early eighties, various attempts have been made to liberalize the industrial policy framework. The new industrial policy of 1991 has entirely liberalized the industrial policy itself. Government has pursuing three sets of reforms: One, deregulation, delicensing, decontrol and debureaucratisation of industrial licensing system; two, liberalizing foreign trade and currency transactions and three, instituting several measures to facilitate foreign direct investment inflows. All these measures were launched in the year 1991 and since then, further liberalization have been introduced every year with each new budget. This paper studies the impact of new industrial policy and new provisions on industrial performance.