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Which of the following was NOT a key component of the 1991 industrial reforms in India?
Expansion of the public sector in key industries
Encouraging Foreign Direct Investment (FDI)
Abolition of the Monopolies and Restrictive Trade Practices (MRTP) Act
Delicensing of industries
Delicensing of industries
The 1991 New Industrial Policy was characterized by liberalization, which specifically aimed to reduce the role of the public sector rather than expand it. Key reforms included industrial delicensing, removal of MRTP Act constraints, and opening the economy to FDI, marking a shift from a command-based to a market-oriented economy.
The 1991 New Industrial Policy was characterized by liberalization, which specifically aimed to reduce the role of the public sector rather than expand it. Key reforms included industrial delicensing, removal of MRTP Act constraints, and opening the economy to FDI, marking a shift from a command-based to a market-oriented economy.
The 1991 reforms were initiated by then Finance Minister Dr. Manmohan Singh under the leadership of Prime Minister P.V. Narasimha Rao, shifting India away from the 'License Raj' era.
Industrial Licensing was abolished for almost all industries, except those related to security, strategic concerns, and environmental issues.
The MRTP Act was replaced by the Competition Act, 2002, to prevent anti-competitive practices.
FDI limits were liberalized in several sectors to attract capital and technology into the Indian market.
Option A is the correct answer to 'NOT a component' because the 1991 reforms sought to restrict the public sector to only a few strategic areas like Atomic Energy and Railways.
Option B, C, and D were integral parts of the New Industrial Policy aimed at increasing global competitiveness and domestic efficiency.
The balance of payments crisis of 1991 served as the immediate catalyst for these structural adjustment programs.
A is correct тАФ The 1991 reforms aimed at downsizing the public sector, not expanding it.
When studying 1991 reforms, link them to the 'Balance of Payments' crisis and the subsequent 'LPG' acronym; these are frequently asked in relation to the role of the IMF and World Bank in India's structural adjustment.
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