New industrial policy 1991 with Recent Developments

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Text of New industrial policy 1991 with Recent Developments

  • Rules, regulations,procedures,laid down by government for regulating , developing and controlling industrial undertakings in the country. It incorporates fiscal & monetary policies, tariff policy, labour policy & Govt attitudes towards foreign capital & also the role to be played by multinational corporations in the development of the industrial sector.
  • De-reservation of Public Sector De-Licensing Disinvestment of Public Sector Foreign investment Foreign Technology Agreements MRTP Act
  • De-licensing of industries helped entrepreneurs to quickly seize business opportunities. Removal of Govt control helped under the MRTP act facilitated expansion and growth. There was greater inflow of foreign capital and technology due to easing of restrictions. Burden of the public sector has been reduced.
  • The bureaucracy has a tendency to attempt to defeat measures aimed at deregulations. Foreign investors still regard the policy and procedural system in India still confusing . Rather many feel that the policy & development of china environment is superior to India. Distortion of Industrial pattern occured due to slow pace of investment in few basic and strategic industries. Absence of mechanism slow down the development of backward areas.
  • Major reforms took place in 2002-2007 Reforms in International Competition: Removal of quantitative restrictions in imports. Decline in role of Public Sector : Disinvestment process converted many of the existing public sector enterprises into non governmental enterprises.
  • Allowed 51% FDI in Multi Brand Retail and 100 FDI in Single Brand retail. It has relaxed rules to allow foreign airlines to invest up to 49% in Indian carriers. Till now any foreign company except an airline could buy stake upto 49 per cent in an Indian airline. This move expected to help bring much-needed cash flow to India's bleeding private airlines. The Cabinet Committee on Economic Affairs also hiked the cap on foreign investment in the broadcast sector to 74 per cent. Earlier, 49 per cent FDI was allowed in cable TV and direct-to-home segments, and 74 per cent in head-end in the Sky (HITS).
  • The government also approved sale of its minority stakes in four public sector firms -- Hindustan Copper, Oil India, MMTC and Nalco-- to raise up to Rs. 15,000 crore.
  • CALENDA R GMT COUNTRY EVENT REFERENCE ACTUAL PREVIOUS CONSENSUS FORECAST 2013-07-12 01:00 PM INDIA INDUSTRIAL PRODUCTION YOY MAY 2013 -1.6% 2% 1.6% 3.97% 2013-08-12 01:00 PM INDIA INDUSTRIAL PRODUCTION YOY JUN 2013 -2.2% -1.6% -1.2% 1.88% 2013-09-12 01:00 PM INDIA INDUSTRIAL PRODUCTION YOY JUL 2013 2.6% -1.8% (R) -0.8% 0.01% 2013-10-11 01:00 PM INDIA INDUSTRIAL PRODUCTION YOY AUG 2013 0.6% 2.75% (R) 2013-11-12 12:00 PM INDIA INDUSTRIAL PRODUCTION YOY SEP 2013 2.0% 0.4% (R) 3.5% 2.52% 2013-12-12 12:00 PM INDIA INDUSTRIAL PRODUCTION YOY OCT 2013 -1.8% 2.0% -1.2% -2.75% -2.04%