Business Environment, 4th Edition by Pearson

504 | Chapter 18

Box 18.1 Objectives of Industrial Policy, 1991

1. To regulate the economy in a substantial manner,

2. To remove weaknesses or distortions of the earlier

policies,

3. To maintain sustained growth in productivity and

employment,

4. To encourage the growth of entrepreneurship, and

5. To upgrade technology to match the standards of

international competitors.

1. Industrial licensing is dispensed with except in 18 items including coal,

petroleum, sugar, motor cars, cigarettes, hazardous chemicals, drugs and

pharmaceuticals, and some luxury items.

2. DFI up to 51percent of equity is allowed in high-priority industries, departing ...