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Question

Which of the following is a characteristic of the 1991 Industrial Policy?

  1. Increased role of the public sector
  2. Promotion of import substitution
  3. Reduction in the number of industries reserved for the public sector
  4. Strengthening of licensing Raj

Answer:

Option C: Reduction in the number of industries reserved for the public sector

Detailed Solution:

The correct answer is “Reduction in the number of industries reserved for the public sector”.

The 1991 Industrial Policy aimed at liberalizing the economy by reducing the role of the public sector, abolishing licensing, and promoting foreign investment.