A new industrial policy was introduced on 24th July 1991 which aimed and effected liberalization in economy, promotion of global trade via globalisation and to some extent provisions for private partnership.
For these major measures proposed were:
i. Elimination of requirements of registration and licensing for establishing new Industry or expanding the existing units.
ii. No requirement to get government’s permission for foreign technical cooperation.
ADVERTISEMENTS:
iii. Raise the limits of foreign investment up to 51 percent from 40 percent in most priority sectors.
iv. Except industries listed in the second schedule, all other industries were excluded form licensing process.
v. All Industrial sectors opened for private enterprises except Arms and ammunitions, nuclear energy, oil, coal, railway and some listed minerals
These steps are taken to boost the economical progress and industrial growth in India.