The New Industrial Policy of 1991 comes at the center of economic reforms that launched during the early 1990s. All the later reform measures were derived out of the new industrial policy. The Policy has brought comprehensive changes in economic regulation in the country. As the name suggests, these reform measures were made in different areas related to the industrial sector.
As part of the policy, the role of public sector has been redefined. A dedicated reform policy for the public sector including the disinvestment programme were launched under the NIP 1991. Private sector has given welcome in major industries that were previously reserved for the public sector.
The policy has brought changes in the following aspects of industrial regulation:
- Industrial delicensing
- Deregulation of the industrial sector
- Public sector policy (dereservation and reform of PSEs)
- Abolition of MRTP Act
- Foreign investment policy and foreign technology policy.