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Question : What was the primary objective of the New Industrial Policy of 1991?

 

Option 1: Restricting private sector participation

Option 2: Promoting small-scale industries

Option 3: Encouraging foreign investmentsd) Nationalizing key industries

Option 4: Nationalizing key industries


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Encouraging foreign investmentsd) Nationalizing key industries


Solution : The correct answer is (c) Encouraging foreign investments

The New Industrial Policy of 1991 aimed to liberalize and reform India's industrial sector, with a particular emphasis on encouraging foreign investments. It marked a significant shift in India's economic policies by moving away from the earlier era of extensive government control and protectionism.

By encouraging foreign investments, the policy aimed to benefit from the capital, technology, managerial expertise, and market access that foreign companies could bring to the Indian economy. It was a strategic move to integrate India with the global economy, promote industrial competitiveness, and create opportunities for domestic industries to access global markets. Objective of the New Industrial Policy of 1991 was to encourage foreign investments as a means to foster industrial growth and development.

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