Which of the following is not a correct major provision of New Industrial Policy, 1991?
The correct answer is Option 4.
Key Points
- The new industrial policy, announced by the government on 23 July 1991 had initiated a bigger process of economic reforms in the country, seriously
motivated towards the structural readjustment naturally obliged to ‘fulfil’ IMF conditions. - The major highlights of the policy are as follows:
- De-reservation of the Industries. Hence, statement 1 is correct.
- De-licencing of the Industries. Hence, statement 3 is correct.
- There are only five industries that carry the burden of compulsory licensing-
- Aerospace and defence-related electronics
- Gun powder, industrial explosives, and detonating fuse
- Dangerous chemicals
- Tobacco, cigarette and related products
- Alcoholic drinks
- There are only five industries that carry the burden of compulsory licensing-
- Abolition of the monopolistic and restrictive trade practices (MRTP) Limit. Hence, statement 2 is correct.
- Promotion to Foreign Investment.
- Foreign Exchange Regulation Act (FERA) Replaced by the Foreign Exchange Management Act (FEMA). Hence, statement 4 is incorrect.
