Industrial Policy Upto 1991

Industrial policy upto 1991  Reservation  Dominance  Entry

of industries

of public sector

and growth restrictions

 Restrictions

technology

on foreign capital and

The new industrial policy  Objectives  Redefinition

of public sector

 Liberalization  Related

of foreign investment

measures

Performance of new policy 

Conducive for both domestic and foreign investments.



Unanimously accepted



Liberalization of industrial licensing

Public sectors  Objectives  Growth  Performance

New public sector policy  Priority

areas

 Withdrawal  Main

elements

privatization 

Definition



Expansion of public sectors and its defects



Privatization reaction

Ways of privatization  Divestiture  Denationalization  Contracting  Franchising

Benefits of privatization  Reduces

the fiscal burden  Privatization helps government  Economic development  Entrepreneurship  Enterprise subjected to more public vigilance

Flaws of privatization  Lack

of proper strategy  Wrong timing  Lack of political consensus  Wrong labour strategies  Wrong environment  Problem of cultural change